AINS 101 Practice Questions, 2026 WITH CORRECT ANSWERS

AINS 101 Practice Questions, |\ |\ |\ |\




2026 WITH CORRECT ANSWERS |\ |\ |\




What is an example of a public insurer? - CORRECT ANSWERS
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✔✔State workers compensation funds are public insurers:
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What are examples of private insurers? - CORRECT ANSWERS
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✔✔Stock, Mutual, and Reciprocal Insurance Exchanges
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Why is there government involvement in insurance? - CORRECT
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ANSWERS ✔✔Federal & State governments are involved to
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facilitate compulsory insurance programs.
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What is a benefit provided by insurance? - CORRECT ANSWERS
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✔✔Insurance helps reduce financial burdens by compensating
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accident victims. |\




Insurance covering property, crime, and liability is an example of
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what kind of policy? - CORRECT ANSWERS ✔✔Commercial
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Package Policy (CPP)|\ |\

,What does a reinsurance company do? - CORRECT ANSWERS
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✔✔Reinsurance companies assume loss exposures from a primary |\ |\ |\ |\ |\ |\ |\ |\



insurer.


What is a mutual insurance company? - CORRECT ANSWERS
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✔✔It is a corporation owned by policy holders that provides
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insurance to its policy holders. |\ |\ |\ |\




What is a part of a written premium? - CORRECT ANSWERS
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✔✔Unearned premiums |\




What doesn't appear on a balance sheet? - CORRECT ANSWERS
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✔✔Net Income |\




Admitted assets are types of property that regulators allow insurers
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to show as asset on their financial statements because they are: -
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CORRECT ANSWERS ✔✔Easily converted to cash. |\ |\ |\ |\ |\




The key to direct writer marketing system is: - CORRECT
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ANSWERS ✔✔An insurer is using its own employees as producers.
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As it grows, Anchor Insurance is examining other distribution
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channels to more effectively market it's products. What is an
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example of what it should look into? - CORRECT ANSWERS
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, ✔✔They should use group marketing to target local college
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graduates.


Independent Agencies can work with how many different insurers?
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- CORRECT ANSWERS ✔✔As many as they want.
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Stephanie appreciates the help she receives from Clem, who
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provides her with recent statistics and comments on Waynes good
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customer satisfaction levels. What department is she in? -
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CORRECT ANSWERS ✔✔Marketing |\ |\




Damages for Disfigurement are considered: - CORRECT ANSWERS
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✔✔General Damages |\




Gerald Hiker is one of the most successful producers at Westfield
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agency, which represents several different insurers. Because of this,
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what is likely true? - CORRECT ANSWERS ✔✔Most of Hiker's
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income from commissions is customer sales.
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Tony is a producer worker with several different insurers. What
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accurately describes Tony's activities for reaching and serving
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customers? - CORRECT ANSWERS ✔✔Generally need to spend
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less time insuring a family's activities than a business' service and
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liability.