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AINS 101 EXAM QUESTIONS AND ANSWERS
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AINS 101 EXAM QUESTIONS AND ANSWERS
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AINS 101 EXAM QUESTIONS AND ANSWERSWhich of the following represents uncertainty about outcomes that can be negative or positive? - answer- Risk
The primary role of insurance is to - answer- Indemnify individuals and organizations for
covered losses.
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? - 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) - 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 - answer- Commercial crime insurance.
Which one of the following correctly describes a reason for government involvement in property-casualty insurance? - answer- Government programs can meet legitimate public demands unmet by private insurers.
All of the following are types of private insurers, EXCEPT: - 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? - answer- Operational risk
Coverage for money and other business property from various causes of loss such as burglary, robbery, theft, and employee dishonesty typically provided by - answer- Commercial crime insruance
Insurance Company wrote a commercial liability policy for a manufacturer of off-road motorcycles. The potential cost of the insured's loss exposure exceed Insurance Company's capacity. Insurance Company could consider which one of the following types of contractual transferring agreement to meet its needs? - answer- Reinsurance
Which one of the following correctly describes a reason for government involvement in property-casualty insruance? - answer- Government programs can meet legitimate public demands unmet by private insurers. AVA is a start up company that develops safety technologies that can be sold to companies that are producing autonomous vehicles. One Technology AVA is developing allows an autonomous vehicle to detect, extract, and analyze images; and then to respond to those images. For example, the technology would detect a presence in a crosswalk, extract the image, and a computer would analyze the image. When the image was determined to be a human being, the vehicle would slow down or stop until the crosswalk was clear. This technology, which is designed to capture and analyze images, and to act on the recognition of the image id called - answer- Computer vision
MFC offers a wide array of mutual fund options to investors. Each mutual fund has a different fund objective and set of investment guidelines that apply to the fund. While MFC gives considerable freedom to its fund portfolio managers, they are required to abide by the funds investment guidelines. To monitor compliance, MFC developed a computer algorithm. The computer algorithm continuously monitors each fund's compliance with investment guidelines. If a fund manager violates the investment guidelines, the computer immediately notifies MFC's internal control director, and corrective action is taken. MFC's use of the computer algorithm to monitor investment compliance and to provide notification when corrective action is necessary illustrates use of - answer- Artificial intelligence
Which one of the following statements is correct regarding the benefits provided by insurance? - 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 flow. Which one of the following examples best illustrates Mehmet's point? - 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 coverage into one policy. This is referred to as as a(n) - answer- Commercial package policy (CPP)
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? - answer- Strategic Risk
Jimmy decided to buy a house in his neighborhood that had been foreclosed on by the bank that held the mortgage. He is hoping to do some renovation and repair work on the
house, and then sell it for a quick profit. Which one of the following types of risk is this for Jimmy? - answer- Speculative risk
Which one of the following best describes that concept of pooling? - answer- Insureds share the cost of each other's losses.
A reinsurance company - answer- Assumes loss exposures from a primary insurer.
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