AINS 21 EXAM TEST BANK 164 QUESTIONS WITH 100% CORRECT ANSWERS UPDATED
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AINS 21
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AINS 21
AINS 21 EXAM TEST BANK 164 QUESTIONS WITH 100% CORRECT ANSWERS UPDATED
What are four types of liability insurance that insurers provide? - Answer- 1) Auto 2) Commercial General 3) Personal 4) Professional
How do insurers cover auto liability? - Answer- They cover an insured's liability for b...
AINS 21 EXAM TEST BANK 164
QUESTIONS WITH 100%
CORRECT ANSWERS UPDATED
2024-2025
What are four types of liability insurance that insurers provide? - Answer- 1) Auto 2)
Commercial General 3) Personal 4) Professional
How do insurers cover auto liability? - Answer- They cover an insured's liability for
bodily injury to others and damage to the property of others resulting from auto-mobile
accidents.
How do insurers cover commercial general liability? - Answer- They cover businesses
for their liability for bodily injury and property damage. Additionally, coverage for libel,
slander, false arrest, and advertising injury.
How do insurers cover personal liability? - Answer- They cover individuals and families
for bodily injury and property damage arising from the insured's personal premises or
activities.
How do insurers cover professional liability? - Answer- They protect professionals
against liability arising out of their professional acts or omissions.
What is life insurance? - Answer- A protection against the loss of income that would
result if the insured passed away. The named beneficiary receives the proceeds and is
thereby safeguarded from the financial impact of the death of the insured.
What are three types of life insurance? - Answer- 1) Whole Life 2) Term 3) Universal
What is whole life insurance? - Answer- Insurance that provides lifetime protection (to
age 100).
How do whole life insurance policies funded? - Answer- They accrue cash value and
have premiums that remain unchanged during the insured's lifetime.
What is a "Cash value" under a whole life insurance plan? - Answer- It is a savings fund
that accumulates in the policy, and that the policyholder can access in several ways,
including borrowing, purchasing paid-up life insurance, and surrendering the policy in
exchange for the fund.
, What is term insurance? - Answer- A type of life insurance, it provides temporary
protection for a certain period with no cash value.
What is the benefit of term insurance? - Answer- Having the most life insurance for the
lowest cost.
What is universal life insurance? - Answer- It combines life insurance protection and
savings. It is a flexible-premium policy that separates the protection, savings, and
expense components.
What are the four kinds of insurance policies? - Answer- 1) Property 2) Liability 3) Life
4) Health
What is health insurance? - Answer- Insurance that covers cost of medical care.
What is disability income insurance? - Answer- Insurance that provides periodic income
payments to an insured who is unable to work because of sickness or injury.
What kind of insurance is disability income insurance? - Answer- Health insurance.
What is the purpose of a Stock Insurance company? - Answer- To earn profit for its
stockholders.
What is the purpose of a Mutual Insurance company? - Answer- To provide insurance to
its policyholders, by its policyholders.
Who can charge an assessment? - Answer- Mutual Insurance Companies.
What is an assessment? - Answer- An additional premium after the policy has gone into
effect. Less common.
What is demutualization? - Answer- The process of converting to a stock insurance
company from a mutual insurance company.
How do stock and mutual companies differ to the insured? - Answer- They don't. From
the insured's perspective, it is insignificant.
What distinguishes Reciprocal Insurance Exchanges from stock and mutual insurance
companies? - Answer- The subscribers empower an attorney-in-fact to manage it.
What is a subscriber? - Answer- Policy holder of a Reciprocal.
What is an attorney-in-fact? - Answer- Contractually authorized manager who
administers and carries out insurance transactions for a Reciprocal.
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