AINS 101 EXAM | INSURANCE
PRACTICE EXAM QUESTIONS AND
ANSWERS RATED A+ | 2024/2025
GUIDE
An insurer will make a loss payment if an insured loss occurs and if the
insured performs certain duties. This illustrates that an insurance policy
is a
Select one:
A. Conditional contract.
B. Contract of indemnity.
C. Contract of adhesion
D. Personal contract.
- Correct Answer - A. Conditional contract.
The Insurance Services Office, Inc. (ISO) commercial package policy is
an example of a
Select one:
A. Manuscript form.
B. Single insurance document.
C. Modular policy
D. Self-contained policy.
- Correct Answer - C. Modular policy
When preprinted forms do not provide the terms of coverage needed by
a particular insured or small group of insureds, the insurer may
Select one:
,A. Draft a manuscript form to meet the customer's needs
B. Ask the customer to resubmit an application.
C. Incorporate statutes into a policy.
D. Work with an advisory organization to develop a form.
- Correct Answer - A. Draft a manuscript form to meet the customer's
needs
The big differences between property and liability policies are found in
their
Select one:
A. Definitions
B. Exclusions
C. Insuring Agreements
D. Conditions
- Correct Answer - C. Insuring Agreements
Which one of the following most accurately describes one of the policy
provisions in an insurance policy?
Select one:
A. The declarations state the insurer's promise to the insured.
B. The definitions contain a list of forms included in the policy.
C. The conditions state what the insurer specifically will not cover
D. The exclusions are in place to reduce duplicate coverage.
- Correct Answer - D. The exclusions are in place to reduce duplicate
coverage.
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?
, Select one:
A. Gerald makes most of his income from commissions from customer
sales
B. Gerald usually presents a proposal for coverage soon after meeting
prospective insureds.
C. Gerald's interactions with customers usually end after he issues them
their policies.
D. Gerald, due to his success at the agency, is more accurately an
"agent" than a "producer".
- Correct Answer - A. Gerald makes most of his income from
commissions from customer sales
Which one of the following accurately describes activities related to
customer service representatives?
Select one:
A. It costs more in advertising to keep an existing customer than to
attract a new one.
B. Excellent service builds strong relationships but not necessarily
customer loyalty.
C. It takes longer to renew an existing account than it does to write a
piece of new business.
D. Profitability in the insurance business is directly linked to customer
retention.
- Correct Answer - D. Profitability in the insurance business is directly
linked to customer retention.
Leadon Transportation is using the expertise of its producer Carmen to
help the organization understand how to correct substandard
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