AINS 101 ACTUAL EXAM SCRIPTED QUESTIONS AND
ANSWERS SURE A+
✔✔Insurance distribution channels - ✔✔1. Digital - apps and websites
2. Call centers - customer service representatives or chatbots
3. Direct response - social media, email blasts, website ads, and direct mail
4. Group marketing - marketing to members of the same personal or professional group
5. Financial institutions - marketing through banks and financial services
✔✔Primary underwriting activities - ✔✔1. Minimize adverse selection
2. Ensure adequate policyholders' surplus
3. Enforce underwriting guidelines
✔✔Field or Line underwriters - ✔✔select insureds, ensure accurate classification and
pricing, recommend or provide coverage, manage a book of business, support
producers and insureds or support marketing objectives
✔✔Corporate or staff underwriters - ✔✔research the market, formulate underwriting
policy, revise underwriting guidelines, develop coverage forms, review rates, educate
and train, arrange reinsurance, assist with complex accounts, conduct underwriting
audits
✔✔Steps of the underwriting process - ✔✔1. Evaluate the application
2. Develop underwriting alternatives
3. Select an underwriting alternative
4. Determine an appropriate premium
5. Implement the underwriting decision
6. Monitor the underwriting decision
✔✔Premium auditors help underwriters in these ways: - ✔✔1. Ensuring accurate
classification of exposures
2. Comparing anticipated loss exposures with actual loss exposures
3. Identifying new exposures
4. Assessing an account's desirability
5. Identifying physical, moral, and morale hazards
✔✔Physical hazards - ✔✔include construction, hazardous materials, and poor safety or
hygiene practices
✔✔Moral hazards - ✔✔include questionable business practices or a failing business
✔✔Morale hazards - ✔✔include indifference to properly maintaining property or poor
financial recordkeeping
, ✔✔Telephone claims representative - ✔✔investigates and evaluates claims based on
phone interviews and correspondence
✔✔Field claims representatives - ✔✔work outside of the office, generally handling
claims that require the scene of the loss to be investigated and holding in-person
meetings with insureds, claimants, lawyers, and any other people involved with the
claim
✔✔Specialized claims representative - ✔✔usually found in larger organizations, where
they develop a particular set of skills and specialize in either one line of business, such
as auto or homeowners, or in a particular state, where they develop expertise in that
state's laws and regulations
✔✔Claims handling process: - ✔✔1. Acknowledging a claim
2. Identifying the policy
3. Contacting the insured
4. Investigating and documenting the claim
5. Determining cause of loss and loss amount
6. Concluding the claim
✔✔Actual cash value - ✔✔replacement cost minus depreciation
✔✔Replacement cost - ✔✔the cost to replace
✔✔Agreed value method - ✔✔A method of valuing property in which the insurer and the
insured agree, at the time the policy is written, on the maximum amount that will be paid
in the event of a total loss.
✔✔Customer service reps can: - ✔✔1. Respond to general inquiries
2. Handle claim reporting
3. Answer billing inquiries
4. Process policy endorsements
5. Review and explain quotes to customers
6. Explain coverage
✔✔Risk management process - ✔✔1. Establish standards of acceptable performance
2. Compare actual results with the standards
3. Correct substandard performance or revise standards
4. Evaluate substantially exceeded standards
✔✔6 Key Traits of Ideally Insurable Loss Exposures - ✔✔1. Pure risk
2. Fortuitous
3. Definite and measurable
4. Loss exposure that is one of a large number of similar exposure units
5. Independent and not catastrophic
ANSWERS SURE A+
✔✔Insurance distribution channels - ✔✔1. Digital - apps and websites
2. Call centers - customer service representatives or chatbots
3. Direct response - social media, email blasts, website ads, and direct mail
4. Group marketing - marketing to members of the same personal or professional group
5. Financial institutions - marketing through banks and financial services
✔✔Primary underwriting activities - ✔✔1. Minimize adverse selection
2. Ensure adequate policyholders' surplus
3. Enforce underwriting guidelines
✔✔Field or Line underwriters - ✔✔select insureds, ensure accurate classification and
pricing, recommend or provide coverage, manage a book of business, support
producers and insureds or support marketing objectives
✔✔Corporate or staff underwriters - ✔✔research the market, formulate underwriting
policy, revise underwriting guidelines, develop coverage forms, review rates, educate
and train, arrange reinsurance, assist with complex accounts, conduct underwriting
audits
✔✔Steps of the underwriting process - ✔✔1. Evaluate the application
2. Develop underwriting alternatives
3. Select an underwriting alternative
4. Determine an appropriate premium
5. Implement the underwriting decision
6. Monitor the underwriting decision
✔✔Premium auditors help underwriters in these ways: - ✔✔1. Ensuring accurate
classification of exposures
2. Comparing anticipated loss exposures with actual loss exposures
3. Identifying new exposures
4. Assessing an account's desirability
5. Identifying physical, moral, and morale hazards
✔✔Physical hazards - ✔✔include construction, hazardous materials, and poor safety or
hygiene practices
✔✔Moral hazards - ✔✔include questionable business practices or a failing business
✔✔Morale hazards - ✔✔include indifference to properly maintaining property or poor
financial recordkeeping
, ✔✔Telephone claims representative - ✔✔investigates and evaluates claims based on
phone interviews and correspondence
✔✔Field claims representatives - ✔✔work outside of the office, generally handling
claims that require the scene of the loss to be investigated and holding in-person
meetings with insureds, claimants, lawyers, and any other people involved with the
claim
✔✔Specialized claims representative - ✔✔usually found in larger organizations, where
they develop a particular set of skills and specialize in either one line of business, such
as auto or homeowners, or in a particular state, where they develop expertise in that
state's laws and regulations
✔✔Claims handling process: - ✔✔1. Acknowledging a claim
2. Identifying the policy
3. Contacting the insured
4. Investigating and documenting the claim
5. Determining cause of loss and loss amount
6. Concluding the claim
✔✔Actual cash value - ✔✔replacement cost minus depreciation
✔✔Replacement cost - ✔✔the cost to replace
✔✔Agreed value method - ✔✔A method of valuing property in which the insurer and the
insured agree, at the time the policy is written, on the maximum amount that will be paid
in the event of a total loss.
✔✔Customer service reps can: - ✔✔1. Respond to general inquiries
2. Handle claim reporting
3. Answer billing inquiries
4. Process policy endorsements
5. Review and explain quotes to customers
6. Explain coverage
✔✔Risk management process - ✔✔1. Establish standards of acceptable performance
2. Compare actual results with the standards
3. Correct substandard performance or revise standards
4. Evaluate substantially exceeded standards
✔✔6 Key Traits of Ideally Insurable Loss Exposures - ✔✔1. Pure risk
2. Fortuitous
3. Definite and measurable
4. Loss exposure that is one of a large number of similar exposure units
5. Independent and not catastrophic
