AINS 101 TEST QUESTIONS WITH ALL CORRECT ANSWERS
Which one of the following is a temporary agreement providing insurance coverage until the formal policy is issued? - Answer- Binder
As an experienced underwriter, Rick has learned to make every effort to avoid a mistake that can produce insuffi...
AINS 101 TEST QUESTIONS WITH
ALL CORRECT ANSWERS
Which one of the following is a temporary agreement providing insurance coverage until
the formal policy is issued? - Answer- Binder
As an experienced underwriter, Rick has learned to make every effort to avoid a
mistake that can produce insufficient premium to cover losses, or pricing that isn't
competitive. Which one of the following underwriting mistakes can often cause these
issues? - Answer- Misclassifying exposures
Bob is shopping for auto insurance. Insurance Company A's rating system determines
that Bob should be charged $800 per auto. If Bob is looking to insure four autos, what
premium will he be charged by Insurance Company A? - Answer- $3,200
Shelton manufacturing has $1 million in annual sales, its liability insurance is priced per
1,000 of sales, and the per-unit rate is $0.50. What is Shelton Manufacturing's liability
insurance premium? - Answer- $500
The size of an employer's loss exposure for workers compensation insurance is based
on - Answer- The amount of its payroll
Producer Gerald Hilker is one of the most successful producers at the Westfield
Agency, which represents several different insurers. Because of this, which one of the
following is most likely true? - Answer- Gerald makes most of his income from
commissions from customer sales.
Producer Gerald Hilker is one of the most successful producers at the Westfield
Agency, which represents several different insurers. Because of this, which one of the
following is most likely false? - Answer- Gerald usually presents a proposal for coverage
soon after meeting prospective insureds.
Gerald's interactions with customers usually end after he issues them their policies.
Gerald, due to his success at the agency, is more accurately an "agent" than a
"producer".
Tony is a producer working with several different insurers. Which one of the following
most accurately describes Tony's activities for reaching and serving customers? -
Answer- Tony will generally need to spend less time insuring a family's activities than a
business' services and liabilities.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
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 Scholarsstudyguide. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.49. You're not tied to anything after your purchase.
