AINS 101 Practice Questions 100% Correct Answers Verified Latest 2024 Version
2 views 0 purchase
Course
AINS 101
Institution
AINS 101
AINS 101 Practice Questions | 100% Correct
Answers | Verified | Latest 2024 Version
Which one of the following best describes the concept of pooling? - The concept of pooling is that
insureds share the cost of each other's losses
As a single mother on a very tight budget, Ciara is tempted to sk...
AINS 101 Practice Questions | 100% Correct
Answers | Verified | Latest 2024 Version
Which one of the following best describes the concept of pooling? - ✔✔The concept of pooling is that
insureds share the cost of each other's losses
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? - ✔✔When her car's windshield breaks,
Ciara has to pay only $100 of the $600 cost of replacing it
Shelton Industries experienced a fire in its manufacturing plant. Several employees suffered burns and
smoke inhalation injuries as they tried to escape the building. Which one of Shelton Industries'
commercial property-casualty policies would pay for the employees' injuries and illnesses? - ✔✔Workers
compensation insurance
Coverage for money and other business property from various causes of loss such as burglary, robbery,
theft, and employee dishonesty typically is provided by - ✔✔Commercial crime insurance
All of the following are types of private insurers, EXCEPT: - ✔✔State workers compensation funds
The state of Maryland operates a residual auto plan (the Maryland Auto Insurance Fund—MAIF) that
provides coverage for drivers who are unable to obtain coverage from private insurers. Which one of the
following is the best rationale for the MAIF program? - ✔✔Auto insurance is compulsory, and the
program makes it possible for all drivers to have reasonably priced insurance
ABC Company experienced a dramatic ideological shift in corporate policies after a national election. This
is an example of which one of the following quadrants of risk? - ✔✔Strategic risk
Jimmy decided to buy a house in his neighborhood that had been foreclosed on by the bank that held
the mortgage. He is hoping to do some renovation and repair work on the house, and then sell it for a
quick profit. Which one of the following types of risk is this for Jimmy? - ✔✔Speculative risk
, Carlos is new to the insurance business and is learning about insurance regulation and what he, now
working with Grady Insurance, will need to be aware of regarding the subject of compliance. Which one
of the following will Carlos find is accurate as he better understands why insurance is regulated? -
✔✔Insurance regulation protects customers by guaranteeing insurance is available and accessible to
everyone who needs it.
What term refers to the ability of an insurer to meet its obligations as they become due? - ✔✔Solvency
One of the reasons for insurance regulation is to prevent destructive competition. In which one of the
following scenarios would destructive competition be exhibited? - ✔✔East Insurance comes up with a
new rate structure allowing "preferred customers" discounted policies when they continually renew year
after year; East eventually loses needed revenue but is rewarded by its competitors leaving the market
All of the following are categories of liabilities found on an insurer's balance sheet, EXCEPT: -
✔✔Policyholders' surplus
Which one of the following is part of written premiums? - ✔✔Unearned premiums
An insurer's balance sheet can best be described as a - ✔✔Snapshot of its financial position.
The financial report for Hometown Insurer contains the following information:
- Earned premiums $4,000,000
- Written premiums $5,000,000
- Net investment income $1,000,000
- Incurred Losses $3,000,000
- Incurred underwriting expense $2,000,000
What is Hometown Insurer's expense ratio? - ✔✔40%
The financial report for LMN Insurance contains the following information:
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 hov. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $8.99. You're not tied to anything after your purchase.
