The primary role of insurance is to - Indemnify individuals and organizations for covered 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. Whic...
AINS 101 - Course Quiz | 100% Correct
Answers | Verified | Latest 2024 Version
The primary role of insurance is to - ✔✔Indemnify individuals and organizations for covered 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.
A homeowners policy is a type of - ✔✔Personal property-casualty insurance policy.
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.
Which one of the following describes the characteristics of a mutual insurance company? - ✔✔A
corporation owned by policyholders that provides insurance to its policyholders.
An insurer that was formed for the purpose of earning a profit for its stockholders is a - ✔✔Stock insurer
Autonomous Vehicle Applications (AVA) is a start-up company that develops safety technologies that can
be sold to companies that are producing autonomous vehicles. One technology AVA is developing allows
an autonomous vehicle to detect, extract, and analyze images; and then to respond to the images. For
example, the technology would detect a presence in a crosswalk, extract the image, and a computer
would analyze the image. When the image was determined to be a human being, the vehicle would slow
down or stop until the crosswalk was clear. This technology, which is designed to capture and analyze
images, and to act on the recognition of the image; is called - ✔✔Computer vision
In an effort to reduce expenses, increase profitability, and reduce human errors; ABC Insurance Company
decided to automate most of its personal lines underwriting function. The company now uses
standardized application forms that are submitted electronically to one of the company's regional
offices. At each regional office, a computer with a scanner reads the applications. The computer has
been programmed with acceptable answers to the questions. If the answers on the application are all
, acceptable, the policy is automatically issued. Rejected applications are automatically forwarded to a
human underwriter who reviews them. The use of this technology has reduced the company's expense
ratio by two and a half percent, and reduced the time it takes to issue a policy. ABC Insurance Company's
use of computers to evaluate applications electronically is an application of - ✔✔Artificial intelligence
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
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.
What term refers to the ability of an insurer to meet its obligations as they become due? - ✔✔Solvency
An insurer's financial statement shows a loss reserve and an unearned premium reserve. These reserves
are part of the insurer's - ✔✔Total liabilities.
Admitted assets are types of property that regulators allow insurers to show as assets on their financial
statements because they are - ✔✔Easily converted to cash
Which one of the following is a nonadmitted asset? - ✔✔Office equipment
The financial report for LMN Insurance contains the following information:
The financial report for Hometown Insurer contains the following information:
Earned premiums $4,000,000
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