Ains101 - Study guides, Class notes & Summaries

AINS 101 Exam Prep Questions with 100% Correct Answers As a single mother on a very tight budget, Ciara is tempted to skimp on her insurance. However, her friend Mehmet tells her not to skimp on insurance, because it will help manage her cash flows. Which one of the following examples best illustrates Mehmet's point? A. Ciara needs her car to get to her job, and she needs her job to make car payments and pay for her car insurance. B. When her car's windshield breaks, Ciara has to pay on...

AINS PRACTICE EXAM WITH CORRECT ANSWERS Which two of the four quadrants of risk are classified as pure risks? Select one: A. Hazard risks and operational risks B. Hazard risks and strategic risks C. Operational risks and financial risks D. Financial risks and strategic risks - CORRECT ANSWER-A. Hazard risks and operational risks Correct. Hazard risks and operational risks are pure risks. Because insurance contracts impose an obligation for ethical practices and behaviors on the p...

AINS 101 Exam With 100% Correct Answers Which one of the following statements is correct regarding the benefits provided by insurance? A. Insurance reduces the financial consequences of loss exposures but not the related uncertainty. B. The reduction in losses paid by insurers due to risk control measures benefits individual insureds but not society as a whole. C. Insurance helps reduce the financial burden to society by compensating accident victims. D. The primary role of insurance is ...

AINS 101 Simulated Exam With 100% Correct Answers A liability loss has the following damages: Medical expenses:$10,000Damages for disfigurement:$50,000Damages for pain and suffering:$100,000 What is the amount of special damages? - answer$10,000 Which one of the following best explains why producers should be alert to changes in clients' loss exposures? - answerImplemented risk management techniques may prove to be ineffective or become obsolete Because the insurance company usually de...

Actual cash value (ACV) - ️️The cost to replace property with new property of like kind and quality less depreciation. Adverse selection - ️️Insuring individuals with a high probability of loss at a cost lower than the insurer would normally charge for that risk because it wasn't aware of the actual risk involved. Binder - ️️A temporary written or oral agreement to provide insurance coverage until a formal written policy is issued. Book of business - ️️A group of polici...

AINS 101 Exam Questions with 100% Correct Answers | Verified Bill is an insurance producer for and employed by ABC Insurance Company (ABC). He represents only ABC when marketing insurance products, and uses an administrative staff also employed by ABC. Bill is a producer in the - answerDirect writer marketing system Because the insurance company usually determines policy wording and the insured has little choice but to "take it or leave it," an insurance contract is a - answerContract of...

AINS 101 Exam Questions With 100% Correct Answers Loss exposure - answerany condition or situation that presents a possibility of loss, whether or not an actual loss occurs Premium - answerthe price of the insurance coverage provided for a specified period Indemnify - answerto restore a party who has sustained a loss to the same financial position that party held before the loss occurred Insured - answerany person or organization who is insured under an insurance policy Property-casualty...