AINS 101 EXAM | COMPLETE QUESTIONS WITH 100% RATED
EXPERT SOLUTIONS |2026 LATEST UPDATED
Pravalt Construction Company pays less than its competitors for workers compensation
insurance because Pravalt has had substantially fewer employee injuries than other firms in its
class. This illustrates which one of the following benefits of insurance? - (answer)Promote risk
control activity
A liability loss has the following damages:
Medical expenses:
$
10,000
Damages for disfigurement:
$
50,000
Damages for pain and suffering:
$
100,000
What is the amount of special damages? - (answer)$10,000
, Oscar's custom-built vehicle looks like a sausage sandwich on wheels. He plans to drive it to
special events at schools around the country where it will serve as a mobile billboard to promote
his product. Oscar is surprised to learn that insurers are reluctant to insure his vehicle because it
fails to meet one of the ideal characteristics of an insurable risk. Which characteristic is Oscar's
vehicle least likely to meet? - (answer)Large number of similar exposure units
The financial report for Hometown Insurer contains the following information:
Earned premiums
$4,000,000
Written premiums
$5,000,000
Net investment income
$1,000,000
Incurred losses
$3,000,000
Incurred underwriting expenses
$2,000,000 - (answer)75%
EXPERT SOLUTIONS |2026 LATEST UPDATED
Pravalt Construction Company pays less than its competitors for workers compensation
insurance because Pravalt has had substantially fewer employee injuries than other firms in its
class. This illustrates which one of the following benefits of insurance? - (answer)Promote risk
control activity
A liability loss has the following damages:
Medical expenses:
$
10,000
Damages for disfigurement:
$
50,000
Damages for pain and suffering:
$
100,000
What is the amount of special damages? - (answer)$10,000
, Oscar's custom-built vehicle looks like a sausage sandwich on wheels. He plans to drive it to
special events at schools around the country where it will serve as a mobile billboard to promote
his product. Oscar is surprised to learn that insurers are reluctant to insure his vehicle because it
fails to meet one of the ideal characteristics of an insurable risk. Which characteristic is Oscar's
vehicle least likely to meet? - (answer)Large number of similar exposure units
The financial report for Hometown Insurer contains the following information:
Earned premiums
$4,000,000
Written premiums
$5,000,000
Net investment income
$1,000,000
Incurred losses
$3,000,000
Incurred underwriting expenses
$2,000,000 - (answer)75%
