100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
AINS 101 Exam Prep/137 Questions and Answers Graded A+ 2024 $15.49   Add to cart

Exam (elaborations)

AINS 101 Exam Prep/137 Questions and Answers Graded A+ 2024

 2 views  0 purchase
  • Course
  • AINS 101 Prep
  • Institution
  • AINS 101 Prep

Loss exposure - Answer- any condition or situation that presents a possibility of loss, whether or not an actual loss occurs Premium - Answer- the price of the insurance coverage provided for a specified period Indemnify - Answer- to restore a party who has sustained a loss to the same financ...

[Show more]

Preview 3 out of 16  pages

  • October 27, 2024
  • 16
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • AINS 101 Prep
  • AINS 101 Prep
avatar-seller
Academicaffairs
AINS 101 Exam Prep/137 Questions and Answers Graded
A+ 2024
Loss exposure - Answer- any condition or situation that presents a possibility of loss,
whether or not an actual loss occurs



Premium - Answer- the price of the insurance coverage provided for a specified period



Indemnify - Answer- to restore a party who has sustained a loss to the same financial position
that party held before the loss occurred



Insured - Answer- any person or organization who is insured under an insurance policy



Property-casualty insurance - Answer- one of the two main sectors of the insurance industry
encompassing numerous types of insurance, most of which cover the financial consequences
of damage to one's own property or legal liability to others



Life-health insurance - Answer- one of the two main sectors of the insurance industry
encompassing numerous types of insurance that cover the financial



Stock insurer - Answer- an insurer that is owned by its stockholders and formed as a
corporation for the purpose of earning a profit for the stockholders



Mutual insurer - Answer- an insurer that is owned by its policyholders and formed as a
corporation for the purpose of providing insurance to them



Surplus-lines insurer - Answer- a non-admitted insurer that is eligible to insure risks that have
been exported by a surplus lines licensee in accordance with a surplus lines law



Reinsurance - Answer- the transfer of insurance risk from one insurer to another through a
contractual agreement under which one insurer (the reinsurer) agrees, in return for a

,reinsurance premium, to indemnify another insurer (the primary insurer) for some or all of
the financial consequences of certain loss exposures covered by the primary's insurance
policies



Pure risk - Answer- a chance of loss or no loss, but no chance of gain



Speculative risk - Answer- a chance of loss, no loss, or gain



Solvency - Answer- the ability of an insurer to meet its financial obligations as they become
due, even those resulting from insured losses that may be claimed several years in the future



Income statement - Answer- the financial statement that reports an organization's profit or
loss for a specific period by comparing the revenues generated with the expenses incurred to
produce those revenues



Earned premiums - Answer- the portion of the written premiums that apply to the part of the
policy period that has already occurred



Underwriting income - Answer- income an insurer earns from premiums paid by
policyholders minus incurred losses and underwriting expenses



Balance sheet - Answer- the financial statement that reports the assets, liabilities, and owner's
equity of an organization as of a specific date



Policyholder's surplus - Answer- an insurer's assets minus its liabilities, which represents its
net worth



Loss adjustment expenses - Answer- the expense that an insurer incurs to investigate, defend,
and settle claims according to the terms specified in the insurance policy

, Assets - Answer- types of property, both tangible and intangible, owned by an entity



Liabilities - Answer- financial obligations, or debts, owned by a company to another entity
usually the policyholder in the case of an insurer



Investment income - Answer- interest, dividends, and net capital gains received by an insurer
from the insurer's financial assets, minus its investment expenses



Loss reserve - Answer- an estimate of the amount of money the insurer expects to pay in the
future for losses that have occurred



Unearned premium reserve - Answer- an insurer liability representing the amount of
premiums received from policyholders that are not yet earned



Loss ratio - Answer- a ratio that measures losses and loss adjustment expenses against
earned premiums and that reflects the percentage of premiums being consumed by losses



Expense ratio - Answer- an insurer's incurred underwriting expenses for a given period
divided by its written premiums for the same period



Combined ratio - Answer- a profitability ratio that indicates whether an insurer has made an
underwriting loss or gain



Independent agency - Answer- a business, operated for the benefit of its owner that sells
insurance, usually as a representative of several unrelated insurers



Exclusive agency marketing system - Answer- an insurance marketing system under which
agents contract to sell insurance exclusively for one insurer

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

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

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

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 Academicaffairs. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $15.49. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

79373 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$15.49
  • (0)
  Add to cart