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AINS 101 Exam Practice Questions and Answers (100% Pass)
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AINS 101 Exam Practice Questions and Answers (100% Pass)
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©PREP4EXAMS@2024 [REAL EXAM DUMPS] Monday, July 22, 2024 1:06 PMAINS 101 Exam Practice Questions and
Answers (100% Pass)
Actual cash value (ACV) - ✔️✔️The cost to replace property with new property of like kind and
quality less depreciation.
Adverse selection - ✔️✔️Insuring individuals with a high probability of loss at a cost lower than
the insurer would normally charge for that risk because it wasn't aware of the actual risk
involved.
Binder - ✔️✔️A temporary written or oral agreement to provide insurance coverage until a formal
written policy is issued.
Book of business - ✔️✔️A group of policies with a common characteristic, such as territory or
type of coverage, or all policies written by a particular insurer or agency.
Broker - ✔️✔️An independent producer who represents insurance customers.
Brokerage - ✔️✔️Compensation in the form of a flat fee or a commission that is paid by the
reinsurer to the reinsurance intermediary for services provided.
Capacity - ✔️✔️The amount of business an insurer is able to write, usually based on a comparison
of the insurer's written premiums to its policyholders' surplus
Catastrophe model - ✔️✔️A type of computer program that estimates losses from future potential
catastrophic events.
Certificate of insurance - ✔️✔️A brief description of insurance coverage prepared by an insurer or
its agent and commonly used by policyholders to provide evidence of insurance.
Claim - ✔️✔️A demand by a person or business seeking to recover from an insurer for a loss that
may be covered by an insurance policy.
Claimant - ✔️✔️A party that makes a claim and that can be either a first-party claimant or a third-
party claimant.
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, ©PREP4EXAMS@2024 [REAL EXAM DUMPS] Monday, July 22, 2024 1:06 PM
Claims representative - ✔️✔️A person responsible for investigating, evaluating, and settling
claims.
Compensatory damages - ✔️✔️A payment awarded by a court to reimburse a victim for actual
harm.
Condition - ✔️✔️Any provision in an insurance policy that qualifies an otherwise enforceable
promise of the insurer.
Conditional contract - ✔️✔️A contract that one or more parties must perform only under certain
conditions.
Contract of adhesion - ✔️✔️Any contract in which one party must either accept the agreement as
written by the other party or reject it.
Contract of indemnity - ✔️✔️A contract in which the insurer agrees, in the event of a covered loss,
to pay an amount directly related to the amount of the loss.
Damages - ✔️✔️Money claimed by, or a monetary award to, a party who has suffered loss or
injury for which another party is legally responsible
Declarations page - ✔️✔️An insurance policy information page or pages providing specific details
about the insured and the subject of the insurance
Deductible - ✔️✔️A portion of a covered loss that is not paid by an insurer.
Depreciation - ✔️✔️The reduction in value caused by the physical wear and tear or technological
or economic obsolescence of property.
Exclusion - ✔️✔️A policy provision that eliminates coverage for specified exposures.
Exposure unit - ✔️✔️The unit of measure (for example, area, gross receipts, payroll) used to
determine an insurance policy premium.
Fortuitous loss - ✔️✔️A loss that is accidental and unexpected.
General damages - ✔️✔️A monetary award to compensate a victim for losses, such as pain and
suffering that does not involve specific, measurable expenses.
Indemnify - ✔️✔️To restore a party who has sustained a loss to the same financial position that
party held before the loss occurred.
Independent exposures - ✔️✔️Group of many persons purchasing insurance independently and not
affected by the losses of others
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