AINS 101 Exam Questions and Answers
|100% Pass
Insuring individuals with a high probability of loss at a cost lower than the insurer would
normally charge for that risk because it wasn't aware of the actual risk involved is known as -
Answer-Adverse selection
A risk control evaluation can make...
Aimee recently accepted a job in the Underwriting department at Noble Insurance Company.
Her responsibilities will include developing coverage forms, arranging reinsurance agreements,
and conducting underwriting audits. Which one of the following is the title of Aimee's new job?
- Answer✔✔-Corporate Underwriter
Jill works in the field for Goshen Mutual as a line underwriter. Which one of the following is
primarily a responsibility of line underwriters? - Answer✔✔-Select insureds
Anna is assessing a grocery store chain with a good maintenance record but frequent minor
liability claims. She aims to adjust their coverage to benefit both the insurer and the insured.
What should she suggest? - Answer✔✔-Propose the general liability coverage at a lower
premium level, but apply a small deductible.
What is the first step in the underwriting process? - Answer✔✔-Evaluate the submission
What is the fundamental measure of loss exposure used in insurance rating - Answer✔✔-
Exposure unit
Risk control personnel can assist underwriters in modifying a new applicant's loss exposures to
meet eligibility requirements. - Answer✔✔-True
Risk control representatives are responsible for compiling all the information required for a
premium audit. - Answer✔✔-False
By making marginal accounts acceptable, risk control helps the Claims Department settle losses.
- Answer✔✔-False
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