AINS 101 Prep Exam
Tested Questions With Revised
Correct Detailed Answers
GRADED PASS
1) Adjuster Toni is evaluating damages in a bodily injury liability claim where she
has determined that the insured is completely at fault for the accident. The
claimant suffered a sprain and stra...
1) Adjuster Toni is evaluating damages in a bodily injury liability claim where she
has determined that the insured is completely at fault for the accident. The
claimant suffered a sprain and strain injury to his neck. His special damages
total $1,500. He was out of work for a week, was disabled and prevented from
performing some regular activities for a month, and attended physical therapy
for six weeks. In assessing general damages, Toni should
A. Multiply $1,500, the amount of special damages, by six, the number of weeks
of physical therapy, and pay $9,000.
B. Use past cases which are similar as a guide.
C. Consider what she would want to be paid if she were in claimant's shoes.
D. Multiply the amount of special damages of $1,500 by three as a rule of thumb,
and pay $4,500. - ANSWER Use past cases which are similar as a guide.
(In assessing general damages, Toni should use past cases which are similar as a
guide.)
2) Producer Gerald Hilker is one of the most successful producers at the
Westfield Agency, which represents several different insurers. Because of this,
which one of the following is most likely true?
A. Gerald makes most of his income from commissions from customer sales.
,B. Gerald usually presents a proposal for coverage soon after meeting prospective
insureds.
C. Gerald's interactions with customers usually end after he issues them their
policies.
D. Gerald, due to his success at the agency, is more accurately an "agent" than a
"producer". - ANSWER Gerald makes most of his income from commissions
from customer sales.
(Gerald makes most of his income from commissions from customer sales. B and
C are both incorrect as a long term relationship with customers is more beneficial
than a one time or hurried sale. D is incorrect as the two terms are synonymous
for anyone selling insurance for one or more insurers.)
3) Which one of the following lists provides the optimum order of
responsibilities that a producer may engage with any customer on a continual
basis?
A. Meeting a prospective customer, giving advice, issuing the policy, adjusting a
claim
B. Meeting a prospective customer, doing a needs and activities analysis,
preparing a coverage proposal, closing the sale
C. Meeting a prospective customer, issuing the policy, collecting premiums,
adjusting a claim.
D. Meeting a prospective customer, reviewing a loss run, issuing a policy,
receiving a commission - ANSWER Meeting a prospective customer, doing a
needs and activities analysis, preparing a coverage proposal, closing the sale
4) Lacey is a customer service representative (CSR) who has been employed by
Greeley Insurance for five years. She worked in Greeley's call center for just a
year when she was moved to a busy insurance office staffed primarily with
claims representatives and producers. As she continues her exemplary service
, to Greeley and its customers, which one of the following best describes how
she supports her fellow insurance professionals in her role as a CSR?
A. Lacey is not permitted to show empathy or take information related to a new
loss that just occurred.
B. Lacey performs all the roles of a claims professional and a producer but with a
different title.
C. Lacey has been trained to replicate many of the activities performed by
producers.
D. Lacey is not permitted to give advice on how a customer may meet specific
coverage needs. - ANSWER Lacey has been trained to replicate many of the
activities performed by producers.
(Lacey has been trained to replicate many of the activities performed by
producers.)
5) Which one of the following accurately describes activities related to customer
service representatives?
A. It costs more in advertising to keep an existing customer than to attract a new
one.
B. It takes longer to renew an existing account than it does to write a piece of new
business.
C. Profitability in the insurance business is directly linked to customer retention.
D. Excellent service builds strong relationships but not necessarily customer
loyalty. - ANSWER Profitability in the insurance business is directly linked to
customer retention.
, 6) Robin, a producer from Grantley Insurance, is always alert to changes in her
clients' loss exposures. Why is this so important?
A. Implemented risk management techniques may prove to be ineffective or
become obsolete.
B. Knowledge of such changes will inform their efforts to create a list of experts
that can be called to assist.
C. Producers have expertise about risk financing through insurance.
D. Producers can aid clients in developing risk management cost allocation plans. -
ANSWER Implemented risk management techniques may prove to be
ineffective or become obsolete. (Correct. Producers should be alert to changes in
clients' loss exposures because implemented risk management techniques may
prove to be ineffective or become obsolete.
7) Leadon Transportation is using the expertise of its producer Carmen to help the
organization understand how to correct substandard performance as well as
evaluate exceeded standards. One measurement she will use is the cost of risk
which is best described as
A. The terms of insurance or other risk-financing mechanisms.
B. The total cost of all aspects of the organization that relate to managing risk.
C. Substandard performance and/or risk management standards.
D. The allocation of risk management costs. - ANSWER The total cost of all
aspects of the organization that relate to managing risk. (Cost of risk involves the
total cost of all aspects of the organization that relate to managing risk.)
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller EWLindy. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $21.34. You're not tied to anything after your purchase.
