AINS 101 NEWEST COMPLETE 2 FINAL PAPER
2026 COMPLETE QUESTIONS AND ANSWERS
◉ Investment income.
Answer: interest, dividends, and net capital gains received by an
insurer from the insurer's financial assets, minus its investment
expenses
◉ Loss reserve.
Answer: an estimate of the amount of money the insurer expects to
pay in the future for losses that have occurred
◉ Unearned premium reserve.
Answer: an insurer liability representing the amount of premiums
received from policyholders that are not yet earned
◉ Loss ratio.
Answer: a ratio that measures losses and loss adjustment expenses
against earned premiums and that reflects the percentage of
premiums being consumed by losses
◉ Expense ratio.
,Answer: an insurer's incurred underwriting expenses for a given
period divided by its written premiums for the same period
◉ Combined ratio.
Answer: a profitability ratio that indicates whether an insurer has
made an underwriting loss or gain
◉ Independent agency.
Answer: a business, operated for the benefit of its owner that sells
insurance, usually as a representative of several unrelated insurers
◉ Exclusive agency marketing system.
Answer: an insurance marketing system under which agents
contract to sell insurance exclusively for one insurer
◉ Direct writer marketing system.
Answer: an insurance marketing system that uses sales agents who
are direct employees of the insurer
◉ Distribution channel.
Answer: the necessary people and physical facilities to support the
sale of insurance products and services
, ◉ Agent.
Answer: in the agency relationship, the party that is authorized by
the principal to act on the principal's behalf
◉ Agency.
Answer: a legal, consensual relationship that exists when one party,
the agent, acts on behalf of another party, the principal
◉ Principal.
Answer: the party in an agency relationship that authorizes the
agent to act on that party's behalf
◉ Agency expiration list.
Answer: the record of an insurance agency's present policyholders
and the dates their policies expire
◉ Underwriting guidelines.
Answer: a written manual that communicates an insurer's
underwriting policy and that specifies the attributes of an account
that an insurer is willing to insure
◉ Binder.
Answer: a temporary written or oral agreement to provide
insurance coverage until a formal written policy is issued
2026 COMPLETE QUESTIONS AND ANSWERS
◉ Investment income.
Answer: interest, dividends, and net capital gains received by an
insurer from the insurer's financial assets, minus its investment
expenses
◉ Loss reserve.
Answer: an estimate of the amount of money the insurer expects to
pay in the future for losses that have occurred
◉ Unearned premium reserve.
Answer: an insurer liability representing the amount of premiums
received from policyholders that are not yet earned
◉ Loss ratio.
Answer: a ratio that measures losses and loss adjustment expenses
against earned premiums and that reflects the percentage of
premiums being consumed by losses
◉ Expense ratio.
,Answer: an insurer's incurred underwriting expenses for a given
period divided by its written premiums for the same period
◉ Combined ratio.
Answer: a profitability ratio that indicates whether an insurer has
made an underwriting loss or gain
◉ Independent agency.
Answer: a business, operated for the benefit of its owner that sells
insurance, usually as a representative of several unrelated insurers
◉ Exclusive agency marketing system.
Answer: an insurance marketing system under which agents
contract to sell insurance exclusively for one insurer
◉ Direct writer marketing system.
Answer: an insurance marketing system that uses sales agents who
are direct employees of the insurer
◉ Distribution channel.
Answer: the necessary people and physical facilities to support the
sale of insurance products and services
, ◉ Agent.
Answer: in the agency relationship, the party that is authorized by
the principal to act on the principal's behalf
◉ Agency.
Answer: a legal, consensual relationship that exists when one party,
the agent, acts on behalf of another party, the principal
◉ Principal.
Answer: the party in an agency relationship that authorizes the
agent to act on that party's behalf
◉ Agency expiration list.
Answer: the record of an insurance agency's present policyholders
and the dates their policies expire
◉ Underwriting guidelines.
Answer: a written manual that communicates an insurer's
underwriting policy and that specifies the attributes of an account
that an insurer is willing to insure
◉ Binder.
Answer: a temporary written or oral agreement to provide
insurance coverage until a formal written policy is issued
