AINS 21 Exam Questions and Answers –
Updated 2024
What is insurance? - Answer-It's a transfer system, business, and contract.
What is a transfer system in insurance? - Answer-One party (the insured), transfers the risk
of financial loss to another party (the insurer). [Essentially, I'm giving...
What is an example of real property? - Answer✔✔-A home owner purchases a lot and then
builds a house and a pool on that said lot. Anything permanent/stationary on that lot is
considered real property.
What is personal property? - Answer✔✔-Anything that is not real property.
What is an example of personal property? - Answer✔✔-A car, computer, TV, clothes, furniture,
on a lot. These are not stationary.
What is a liability loss exposure? - Answer✔✔-This is any condition or situation that presents
the possibility that a liability loss will occur.
What is a liability loss exposure? - Answer✔✔-This is a claim for monetary damages because of
injury to another party or damage to another party's property. The possibility of a claim alleging
legal responsibility of a person or business for injury or damage suffered by another party.
Often, these claims result in lawsuits. (includes negligence).
What is a human/personal loss exposure? - Answer✔✔-Financial loss to individual/family
because of death, disability or unemployment.
What is a personnel loss exposure? - Answer✔✔-This generally refers to a loss caused by death,
disability, retirement, or resignation of key employees.
What characteristics define an ideally insurable loss exposure? - Answer✔✔-Large number of
similar exposure units (better predictions), losses that are accidental (these occur less and have
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