AINS Practice Exam Review | 91 Question with 100 %
correct answers | Verified& Updated 2024 Graded A+
Constructive Total Loss - ✔✔A loss that occurs when the cost to repair the damaged
property plus its remaining salvage value equals or exceeds the pre-loss value
General Damages - ✔✔A monetary award to compensate a victim for losses, such as pain
and suffering, that do not involve specific measurable expenses
Enterprise-wide risk management program (ERM) - ✔✔Implemented at the corporate level
and manages all of an organization's key risks and opportunities with the intent of maximizing
the organization's value.
Elements of a Contract - ✔✔Legal purpose, consideration and agreement
Distinguishing Characteristics of Insurance Policies - ✔✔Contract of Indemnity
Contract of utmost good faith
Contract involving fortuitous events
Contract of adhesion
Conditional Contract
Nontransferable Contract
, Modular Policy - ✔✔Combines many different forms under one policy (ex. commercial
property package)
"Other Structure" - ✔✔Covered by policy but under separate policy limits
Broad statement of insurer's promises in a policy - ✔✔Insuring Agreement
Coinsurance - ✔✔Reduces amount of recovery if a property is underinsured
Medical Payments under Auto Policy - ✔✔Cover only occupants of covered auto
A fair approach to liability claims is to... - ✔✔evaluate claims as though no coverage
limit existed
ACV - Salvage Value - ✔✔Constructive Total Loss or not
Judgment Rating - ✔✔Used when there is no established premium-determination system
Fair Access to Insurance Requirements (FAIR) - ✔✔makes basic property insurance available
to those who can't get it otherwise
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