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AINS 101 EXAM AND PRACTICE EXAM NEWEST ACTUAL EXAM COMPLETE 400 QUESTIONS AND CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED A$25.49
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AINS 101 EXAM AND PRACTICE EXAM NEWEST ACTUAL EXAM COMPLETE 400 QUESTIONS AND CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED A
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Course
AINS 101
Institution
AINS 101
AINS 101 EXAM AND PRACTICE EXAM NEWEST ACTUAL
EXAM COMPLETE 400 QUESTIONS AND CORRECT DETAILED
ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED A+
Which of the following is an example of a legal requirement for
individuals that could be met through insurance?
a. contributing to the growth of the ...
AINS 101 EXAM AND PRACTICE EXAM NEWEST ACTUAL
EXAM COMPLETE 400 QUESTIONS AND CORRECT DETAILED
ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED A+
Which of the following is an example of a legal requirement for
individuals that could be met through insurance?
a. contributing to the growth of the organization
b. paying for losses
c. obtaining personal auto insurance
d. providing a source of investment funds - CORRECT ANSWER c. obtaining
personal auto insurance
A fire destroys the kitchen in Rob and Laurie's home. Which insurance
policy would provide coverage for the damage?
a. Homeowners Policy (Personal Liability)
b. Homeowners Policy (Property)
c. Personal Umbrella Policy
d. Personal Auto Policy - CORRECT ANSWER b. Homeowners Policy
(Property)
Which insurance policy could protect Rob and Laurie's sandwich shop
against losses from employee theft?
a. Workers Compensation
b. Commercial Crime
c. Commercial Property
d. Commercial General Liability
e. Commercial Auto - CORRECT ANSWER b. Commercial Crime
The best indication of an insurer's overall financial health is the -
CORRECT ANSWER policyholders surplus (It shows how much cash an
insurer has on hand for emergencies, unexpected losses, and
expansion of business)
,Combined ratio = - CORRECT ANSWER loss ratio + expense ratio
expense ratio = - CORRECT ANSWER incurred underwriting expenses /
written premiums
loss ratio = - CORRECT ANSWER incurred losses (including loss
adjustment expenses) / earned premiums
Marco has been approved for a car insurance policy with a low
premium because on his application he gave an address in a low-crime
area. However, the actual address at which he lives and parks his car
is in a high-crime area. What is this an example of?
a. Growing capacity
b. Adverse selection
c. Creating surplus
d. Following underwriting guidelines - CORRECT ANSWER b. Adverse
selection
Emily is the underwriter for Marco's account. What is one way she
could detect and minimize instances of adverse selection such as
this?
a. Increase auto policy premiums
b. Ensure adequate policyholders' surplus
c. Monitor the book of business for unusual patterns of policy growth
or losses
d. Alter the underwriting guidelines - CORRECT ANSWER c. Monitor the
book of business for unusual patterns of policy growth or losses
These underwriters evaluate individual insurance applications and
policy renewals and manage their own books of business. In many
ways, they are the public face of the Underwriting Department -
CORRECT ANSWER field underwriters
These underwriters make large-scale decisions about coverage,
pricing, lines of business, and the overall risk selection process -
CORRECT ANSWER corporate underwriters
,What do underwriters evaluate to determine the appropriate
classification for a commercial operation?
a. the insurer's book of business
b. specific characteristics of the insured's operation
c. the producer's years of experience on the job
d. policy holders' surplus - CORRECT ANSWER b. specific characteristics
of the insured's operation
Exposure unit to the type of insurance it's typically used for:
Each vehicle - CORRECT ANSWER auto
Exposure unit to the type of insurance it's typically used for:
Each $100 of insured value - CORRECT ANSWER commercial property
Exposure unit to the type of insurance it's typically used for:
Each $1,000 of gross sales - CORRECT ANSWER general liability
Exposure unit to the type of insurance it's typically used for:
Each $1,000 of insured value - CORRECT ANSWER homeowners
Exposure unit to the type of insurance it's typically used for:
Each $100 of payroll - CORRECT ANSWER workers comp
Maria accidentally rear-ended Kenneth at a stop light. After the two
made sure they were both uninjured, they exchanged insurance
information. Shortly afterward, Kenneth called Maria's insurer and
talked to Javier to report the damages to his car.
______ is the claim's representative. - CORRECT ANSWER Javier
Maria accidentally rear-ended Kenneth at a stop light. After the two
made sure they were both uninjured, they exchanged insurance
information. Shortly afterward, Kenneth called Maria's insurer and
talked to Javier to report the damages to his car.
_____ is the claimant. - CORRECT ANSWER Kenneth
, Belinda is a claims professional who works outside her organization's
office. She generally handles claims that require investigating the
scene of a loss; resolving complex investigative issues; and meeting
with insureds, claimants, lawyers, and others involved in a claim. What
type of claims representative is she?
a. Telephone claims representative
b. Claims manager
c. Claims supervisor
d. Field claims representative - CORRECT ANSWER d. Field claims
representative
If Tania needed to consult an accident-scene reconstruction
specialist, she would have been engaged in which one of these claims
hand
ling activities?
a. Investigating and documenting the claim.
b. Contacting the insured or the insured's representative
c. Identifying the policy that may cover the claim
d. Acknowledging a claim and assigning it to the claims representative
- CORRECT ANSWER a. Investigating and documenting the claim.
Using the previous example, let's say the couch destroyed in the fire
has a ten-year lifespan and replacement value of $800. If it was four
years old and insured for its actual cash value, how much would the
policyholder receive?
a. $480
b. $800
c. $380
d. $600 - CORRECT ANSWER a. $480
reimburses the insured for the cost of replacing the property, minus
depreciation - CORRECT ANSWER actual cash value
The maximum amount that will be paid in the event of a loss is set by
the insured and insurer at the time the policy is written. - CORRECT
ANSWER agreed value
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