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AINS 101 - Course Quiz With Correct Answers.
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AINS 101 - Course Quiz With Correct Answers.
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AINS 101 - Course Quiz With CorrectAnswers
The hprimary hrole hof hinsurance his hto h- hANS-Indemnify hindividuals hand horganizations
hfor hcovered hlosses.
As ha hsingle hmother hon ha hvery htight hbudget, hCiara his htempted hto hskimp hon hher
hinsurance. hHowever, hher hfriend hMehmet htells hher hnot hto hskimp hon hinsurance,
hbecause hit hwill hhelp hmanage hher hcash hflows. hWhich hone hof hthe hfollowing
hexamples hbest hillustrates hMehmet's hpoint? h- hANS-When hher hcar's hwindshield
hbreaks, hCiara hhas hto hpay honly h$100 hof hthe h$600 hcost hof hreplacing hit.
A hhomeowners hpolicy his ha htype hof h- hANS-Personal hproperty-casualty hinsurance
hpolicy.
Coverage hfor hmoney hand hother hbusiness hproperty hfrom hvarious hcauses hof hloss
hsuch has hburglary, hrobbery, htheft, hand hemployee hdishonesty htypically his hprovided
hby h- hANS-Commercial hcrime hinsurance.
Which hone hof hthe hfollowing hdescribes hthe hcharacteristics hof ha hmutual hinsurance
hcompany? h- hANS-A hcorporation howned hby hpolicyholders hthat hprovides hinsurance
hto hits hpolicyholders.
An hinsurer hthat hwas hformed hfor hthe hpurpose hof hearning ha hprofit hfor hits
hstockholders his ha h- hANS-Stock hinsurer
Autonomous hVehicle hApplications h(AVA) his ha hstart-up hcompany hthat hdevelops
hsafety htechnologies hthat hcan hbe hsold hto hcompanies hthat hare hproducing
hautonomous hvehicles. hOne htechnology hAVA his hdeveloping hallows han hautonomous
hvehicle hto hdetect, hextract, hand hanalyze himages; hand hthen hto hrespond hto hthe
himages. hFor hexample, hthe htechnology hwould hdetect ha hpresence hin ha hcrosswalk,
hextract hthe himage, hand ha hcomputer hwould hanalyze hthe himage. hWhen hthe himage
hwas hdetermined hto hbe ha hhuman hbeing, hthe hvehicle hwould hslow hdown hor hstop
huntil hthe hcrosswalk hwas hclear. hThis htechnology, hwhich his hdesigned hto hcapture
hand hanalyze himages, hand hto hact hon hthe hrecognition hof hthe himage; his hcalled h-
hANS-Computer hvision
In han heffort hto hreduce hexpenses, hincrease hprofitability, hand hreduce hhuman herrors;
hABC hInsurance hCompany hdecided hto hautomate hmost hof hits hpersonal hlines
hunderwriting hfunction. hThe hcompany hnow huses hstandardized happlication hforms
hthat hare hsubmitted helectronically hto hone hof hthe hcompany's hregional hoffices. hAt
, heach hregional hoffice, ha hcomputer hwith ha hscanner hreads hthe happlications. hThe
hcomputer hhas hbeen hprogrammed hwith hacceptable hanswers hto hthe hquestions. hIf
hthe hanswers hon hthe happlication hare hall hacceptable, hthe hpolicy his hautomatically
hissued. hRejected happlications hare hautomatically hforwarded hto ha hhuman hunderwriter
hwho hreviews hthem. hThe huse hof hthis htechnology hhas hreduced hthe hcompany's
hexpense hratio hby htwo hand ha hhalf hpercent, hand hreduced hthe htime hit htakes hto
hissue ha hpolicy. hABC hInsurance hCompany's huse hof hcomputers hto hevaluate
happlications helectronically his han happlication hof h- hANS-Artificial hintelligence
Carlos his hnew hto hthe hinsurance hbusiness hand his hlearning habout hinsurance
hregulation hand hwhat hhe, hnow hworking hwith hGrady hInsurance, hwill hneed hto hbe
haware hof hregarding hthe hsubject hof hcompliance. hWhich hone hof hthe hfollowing hwill
hCarlos hfind his haccurate has hhe hbetter hunderstands hwhy hinsurance his hregulated? h-
hANS-Insurance hregulation hprotects hcustomers hby hguaranteeing hinsurance his
havailable hand haccessible hto heveryone hwho hneeds hit
One hof hthe hreasons hfor hinsurance hregulation his hto hprevent hdestructive hcompetition.
hIn hwhich hone hof hthe hfollowing hscenarios hwould hdestructive hcompetition hbe
hexhibited? h- hANS-East hInsurance hcomes hup hwith ha hnew hrate hstructure hallowing
h"preferred hcustomers" hdiscounted hpolicies hwhen hthey hcontinually hrenew hyear hafter
hyear; hEast heventually hloses hneeded hrevenue hbut his hrewarded hby hits hcompetitors
hleaving hthe hmarket.
What hterm hrefers hto hthe hability hof han hinsurer hto hmeet hits hobligations has hthey
hbecome hdue? h- hANS-Solvency
An hinsurer's hfinancial hstatement hshows ha hloss hreserve hand han hunearned hpremium
hreserve. hThese hreserves hare hpart hof hthe hinsurer's h- hANS-Total hliabilities.
Admitted hassets hare htypes hof hproperty hthat hregulators hallow hinsurers hto hshow has
hassets hon htheir hfinancial hstatements hbecause hthey hare h- hANS-Easily hconverted hto
hcash
Which hone hof hthe hfollowing his ha hnonadmitted hasset? h- hANS-Office hequipment
The hfinancial hreport hfor hLMN hInsurance hcontains hthe hfollowing hinformation:
Earned hpremiums h$8,000,000Written hpremiums h$10,000,000Incurred hlosses
h$6,000,000Incurred hunderwriting hexpenses h$4,000,000
What his hLMN hInsurance's hexpense hratio? h- hANS-40%
The hfinancial hreport hfor hHometown hInsurer hcontains hthe hfollowing hinformation:
Earned hpremiums h$4,000,000
Written hpremiums h$5,000,000
Net hinvestment hincome h$1,000,000
Incurred hLosses h$3,000,000
Incurred hunderwriting hexpense h$2,000,000
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