AINS 101 Exam | Associate in Insurance |
100+ Questions and Answers | Rated A+ |
Updated 2024/2025
Bill is an insurance producer for and employed by ABC Insurance
Company (ABC). He represents only ABC when marketing insurance
products, and uses an administrative staff also employed by ABC. Bill is
a producer in the - Correct Answer - Direct writer marketing system
Because the insurance company usually determines policy wording and
the insured has little choice but to "take it or leave it," an insurance
contract is a - Correct Answer - Contract of adhesion
Which one of the following best explains why producers should be alert
to changes in clients' loss exposures? - Correct Answer - Implemented
risk management techniques may prove to be ineffective or become
obsolete
At Greenfield Insurance Company, Bernadette and Rachel are corporate
underwriters, and Tomas and Jose are field underwriters. All of the
following are underwriting activities typically performed by corporate (or
staff) underwriters like Bernadette and Rachel, EXCEPT: - Correct
Answer - Support producers and insureds
Joel is the underwriter for Stanton Industries. He received a notice from
the premium auditor on the account. After a recent visit to the insured's
location, the auditor wanted to make Joel aware of a decline in the
business and some questionable business practices. Which one of the
,following types of hazards is the auditor identifying? - Correct Answer -
Moral hazards
Moral hazards - Correct Answer - include questionable business
practices or a failing business.
James West is a claims rep with Hatters Insurance. As he learns how to
handle a claim from start to finish, which one of the following best
describes the correct order for him to follow during this process? -
Correct Answer - Identifying the policy, calculating a loss reserve,
determining the cause of loss, preparing a loss statement
Margaret was severely injured and scarred due to a recent accident.
Which one of the following is an example of general damages Margaret
received? - Correct Answer - Compensation for disfigurement
Donna is an insurance producer. She makes an appointment with
potential policyholder Sandie to review her loss exposures. She asks
Sandie to complete a questionnaire to assist her in this effort. Donna is
conducting a - Correct Answer - Risk management review
Rachel is a new employee of Westley Insurance, and has been asked to
review some existing policies to become familiar with the types of
policies she will be working with. Which one of the following will Rachel
find is true as she conducts her review? - Correct Answer - Rachel finds
the policy begins with a coverage overview and then goes into more
coverage details.
, Sports, Inc. is looking to obtain a commercial property policy on its
building for $400,000. If their insurer decides to charge them a rate of
$0.50 per $100 of building insurance, what premium must Sports, Inc.
pay? - Correct Answer - $2,000
Destructive competition in the insurance industry could result in - Correct
Answer - Insurance shortages
The financial report for Hometown Insurer contains the following
information:
Earned premiums$4,000,000Written premiums$5,000,000Net
investment income$1,000,000Incurred losses$3,000,000Incurred
underwriting expenses$2,000,000
What is Hometown Insurer's loss ratio? - Correct Answer - 75%
Loss Ratio - Correct Answer - incurred losses divided by its earned
premiums
Jessie is a new customer service representative (CSR) at the Winfield
Agency. Jessie usually engages in all the following activities, EXCEPT: -
Correct Answer - Determining coverage quotes
Riley Turner is performing a comprehensive evaluation of Hardwick
Enterprises to make sure its insurance and risk management efforts are
serving the organization appropriately. Which one of the following will be
true in regard to this effort? - Correct Answer - Besides risk management
goals being attainable, they should also pose a challenge.
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