Answers for AINS Exam questions and 100% revised correct answers
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Course
Ains
Institution
Ains
Which one of the following statements is correct regarding the benefits provided by insurance? - correct answer Insurance helps reduce the financial burden to society by compensating accident victims.
As a single mother on a very tight budget, Ciara is tempted to skimp on her insurance. However,...
Which one of the following statements is correct regarding the benefits provided by insurance? - correct
answer Insurance helps reduce the financial burden to society by compensating accident victims.
As a single mother on a very tight budget, Ciara is tempted to skimp on her insurance. However, her
friend Mehmet tells her not to skimp on insurance, because it will help manage her cash flows. Which
one of the following examples best illustrates Mehmet's point? - correct answer When her car's
windshield breaks, Ciara has to pay only $100 of the $600 cost of replacing it.
The insurance agent suggested that Sally's Snack Shop buy a policy that combines property, crime, and
liability coverages into one policy. This is referred to as a(n) - correct answer Commercial package policy
(CPP).
Coverage for money and other business property from various causes of loss such as burglary, robbery,
theft, and employee dishonesty typically is provided by - correct answer Commercial crime insurance.
Which one of the following correctly describes a reason for government involvement in property-
casualty insurance? - correct answer Government programs can meet legitimate public demands unmet
by private insurers.
All of the following are types of private insurers, EXCEPT: - correct answer State workers compensation
funds
ABC Company experienced a dramatic ideological shift in corporate policies after a national election. This
is an example of which one of the following quadrants of risk? - correct answer Operational risk
In an effort to reduce expenses, increase profitability, and reduce human errors; ABC Insurance Company
decided to automate most of its personal lines underwriting function. The company now uses
standardized application forms that are submitted electronically to one of the company's regional
offices. At each regional office, a computer with a scanner reads the applications. The computer has
been programmed with acceptable answers to the questions. If the answers on the application are all
acceptable, the policy is automatically issued. Rejected applications are automatically forwarded to a
human underwriter who reviews them. The use of this technology has reduced the company's expense
ratio by two and a half percent, and reduced the time it takes to issue a policy. ABC Insurance Company's
, Answer for AINS Exam
use of computers to evaluate applications electronically is an application of - correct answer Artificial
intelligence.
Renegade Insurance prides itself on its upstanding reputation through its commitment to small
communities' homeowners coverage needs over the past twenty years. Which one of Renegade's actions
over this time would best illustrate its continued commitment to maintaining its solvency? - correct
answer Renegade keeps enough cash assets on hand to cover claims on policies long after it collected
the premiums from customers.
What term refers to the ability of an insurer to meet its obligations as they become due? - correct
answer Solvency
Carlos is new to the insurance business and is learning about insurance regulation and what he, now
working with Grady Insurance, will need to be aware of regarding the subject of compliance. Which one
of the following will Carlos find is accurate as he better understands why insurance is regulated? - correct
answer Insurance regulation protects customers by guaranteeing insurance is available and accessible to
everyone who needs it.
Admitted assets are types of property that regulators allow insurers to show as assets on their financial
statements because they are - correct answer Easily converted to cash.
An insurer's financial statement shows a loss reserve and an unearned premium reserve. These reserves
are part of the insurer's - correct answer Total liabilities.
If an insurer's admitted assets stayed the same but its liabilities increased significantly, its policyholders'
surplus would - correct answer Decrease
The financial report for Hometown Insurer contains the following information:
Earned premiums $4,000,000
Written premiums $5,000,000
Net investment income $1,000,000
Incurred Losses $3,000,000
Incurred underwriting expense $2,000,000
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