AINS 21 Segment A (ch 1-3) Exam Questions with Correct Answers
Question 1:
Loss exposure
Answer:
Any condition or situation that presents a possibility of loss, whether or not an actual loss
occurs
Question 2:
Risk management
Answer:
The process of making and implementing decisions that will minimize the adverse effects of
accidental losses on an organization
Question 3:
Loss prevention
Answer:
A risk control technique that reduces the frequency of a particular loss
Question 4:
Loss reduction
Answer:
A risk control technique that reduces the severity of a particular loss
Question 5:
Exposure unit
Answer:
A fundamental measure of the loss exposure assumed by an insurer
Question 6:
Property-casualty insurance
Answer:
One of the two main sectors of the insurance industry, encompassing numerous types of
insurance, most of which cover the financial consequences of damage to one's own property or
legal liability to others.
, Question 7:
Life-health insurance
Answer:
One of the two main sectors of the insurance industry, encompassing numerous types of
insurance that cover the financial consequences of death, injury, or sickness
Question 8:
Utmost good faith
Answer:
An obligation to act in complete honesty and to disclose all relevant facts
Question 9:
Contract of adhesion
Answer:
Any contract in which one party must either accept the agreement as written by the other party
or reject it
Question 10:
Contract of indemnity
Answer:
A contract in which the insurer agrees, in the event of a covered loss, to pay an amount directly
related to the amount of the loss
Question 11:
Self-contained policy
Answer:
A single document that contains all the agreements between the insured and the insurer and
that forms a complete insurance policy
Question 12:
Modular policy
Answer:
An insurance policy that consists of several different documents, none of which by itself forms a
complete policy
Question 1:
Loss exposure
Answer:
Any condition or situation that presents a possibility of loss, whether or not an actual loss
occurs
Question 2:
Risk management
Answer:
The process of making and implementing decisions that will minimize the adverse effects of
accidental losses on an organization
Question 3:
Loss prevention
Answer:
A risk control technique that reduces the frequency of a particular loss
Question 4:
Loss reduction
Answer:
A risk control technique that reduces the severity of a particular loss
Question 5:
Exposure unit
Answer:
A fundamental measure of the loss exposure assumed by an insurer
Question 6:
Property-casualty insurance
Answer:
One of the two main sectors of the insurance industry, encompassing numerous types of
insurance, most of which cover the financial consequences of damage to one's own property or
legal liability to others.
, Question 7:
Life-health insurance
Answer:
One of the two main sectors of the insurance industry, encompassing numerous types of
insurance that cover the financial consequences of death, injury, or sickness
Question 8:
Utmost good faith
Answer:
An obligation to act in complete honesty and to disclose all relevant facts
Question 9:
Contract of adhesion
Answer:
Any contract in which one party must either accept the agreement as written by the other party
or reject it
Question 10:
Contract of indemnity
Answer:
A contract in which the insurer agrees, in the event of a covered loss, to pay an amount directly
related to the amount of the loss
Question 11:
Self-contained policy
Answer:
A single document that contains all the agreements between the insured and the insurer and
that forms a complete insurance policy
Question 12:
Modular policy
Answer:
An insurance policy that consists of several different documents, none of which by itself forms a
complete policy
