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AINS 21 Practice Quiz Test Exam Questions with Verified Answers $12.99   Add to cart

Exam (elaborations)

AINS 21 Practice Quiz Test Exam Questions with Verified Answers

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AINS 21 Practice Quiz Test Exam Questions with Verified Answers 1: What does AINS stand for in the context of insurance education? - correct answer - Associate in General Insurance. 2: What is the primary purpose of insurance? - correct answer - To transfer risk from an individual or busines...

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  • September 12, 2024
  • 14
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • AINS 21
  • AINS 21
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PASSINGMASTER01
AINS 21 Practice Quiz Test Exam Questions with
Verified Answers



1: What does AINS stand for in the context of insurance education? - correct
answer - Associate in General Insurance.




2: What is the primary purpose of insurance? - correct answer -

To transfer risk from an individual or business to an insurance company.




3: What is a premium in insurance terms? - correct answer -

The amount of money an insured pays to an insurer for coverage.




4: Define underwriting in the insurance industry.

The process of evaluating risk and determining the terms and pricing of
insurance policies.




5: What is a deductible in an insurance policy? - correct answer -

The amount the insured must pay out-of-pocket before the insurance
company pays a claim.




6: What is the principle of indemnity? - correct answer -

, The principle that insurance should restore the insured to their financial
position before the loss, without allowing them to profit from the insurance.




7: What is a policyholder? - correct answer -

The individual or entity that owns an insurance policy.




8: Explain the term loss ratio.

A ratio that compares the insurers losses to its premiums earned.




9: What is the difference between a peril and a hazard? - correct answer -

A peril is a cause of loss, while a hazard increases the likelihood of a loss
occurring.




10: What is an insurance policy? - correct answer -

A contract between the insurer and the insured outlining the terms of
coverage.




11: What is the role of an insurance agent? - correct answer -

To sell and service insurance policies on behalf of an insurance company.




12: Define reinsurance.

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