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AINS 101 | INSURANCE EXAM | QUESTIONS AND CORRECT ANSWERS RATED A+ | 2024/2025 GUIDE $11.49   Add to cart

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AINS 101 | INSURANCE EXAM | QUESTIONS AND CORRECT ANSWERS RATED A+ | 2024/2025 GUIDE

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AINS 101 | INSURANCE EXAM | QUESTIONS AND CORRECT ANSWERS RATED A+ | 2024/2025 GUIDE AINS 101 | INSURANCE EXAM | QUESTIONS AND CORRECT ANSWERS RATED A+ | 2024/2025 GUIDE AINS 101 | INSURANCE EXAM | QUESTIONS AND CORRECT ANSWERS RATED A+ | 2024/2025 GUIDE

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  • November 5, 2024
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  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • AINS 101 /AINS101
  • AINS 101 /AINS101
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AINS 101 | INSURANCE EXAM |
QUESTIONS AND CORRECT ANSWERS
RATED A+ | 2024/2025 GUIDE
What is replacement cost valuation?
- Correct Answer - Does not consider depreciation, but what it would cost to
replace the item


What is Agreed Value?
- Correct Answer - This method is used to insure property that is difficult to
value (fine arts, antiques, collections)


What is a moral hazard?
- Correct Answer - Questionable business practices or a failing business


What is a morale hazard?
- Correct Answer - Indifference to properly maintaining property or poor
financial recordkeeping


What is a physical hazard?
- Correct Answer - Construction, hazardous materials, poor safety and hygiene
practices


What is risk?
- Correct Answer - Uncertainty about outcomes

, Explain the concept of transfer
- Correct Answer - Transferring the financial consequences of unanticipated
events to an insurer


Explain the concept of pooling
- Correct Answer - all insureds share the costs of each other's losses


What is the amount of business that an insurer can write based on regulatory
guidelines? (usually a comparison of the insurer's written premiums to the
policyholder's surplus)
- Correct Answer - Capacity


What is policyholder's surplus?
- Correct Answer - the difference between an insurance company's assets and
liabilities


What is an admitted asset?
- Correct Answer - Items that insurers can easily turn into cash (stocks, bonds,
real estate)


What is a nonadmitted asset?
- Correct Answer - Types of property that insurers can't easily convert to cash


What gives a snapshot of the insurer's financial position at a specific point in
time?
- Correct Answer - Balance sheet

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