AINS 101 INCREASING YOUR INSURANCE
IQ COMPREHENSIVE EXAM QUESTIONS
AND CORRECT ANSWERS COMPLETE
STUDY SHEET
●● Premium
Answer: The price of the insurance coverage provided for a specified
period.
●● Indemnify
Answer: To restore a party who has sustained a loss to the same financial
position that party held before the loss occurred
●● Insured
Answer: Any person or organization who is insured under an insurance
policy.
●● 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.
, ●● 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.
●● Stock Insurer
Answer: An insurer that is owned by its stockholders and formed as a
corporation for the purpose of earning a profit for the stockholders.
●● Mutual Insurer
Answer: An insurer that is owned by its policyholders and formed as a
corporation for the purpose of providing insurance to them.
●● Surplus Lines Insurer
Answer: A nonadmitted insurer that is eligible to insure risks that have
been exported by a surplus lines licensee in accordance with a surplus
lines law.
●● Reinsurance
Answer: The transfer of insurance risk from one insurer to another
through a contractual agreement under which one insurer (the reinsurer)
agrees, in return for a reinsurance premium, to indemnify another insurer
(the primary insurer) for some or all of the financial consequences of
certain loss exposures covered by the primary's insurance policies.
IQ COMPREHENSIVE EXAM QUESTIONS
AND CORRECT ANSWERS COMPLETE
STUDY SHEET
●● Premium
Answer: The price of the insurance coverage provided for a specified
period.
●● Indemnify
Answer: To restore a party who has sustained a loss to the same financial
position that party held before the loss occurred
●● Insured
Answer: Any person or organization who is insured under an insurance
policy.
●● 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.
, ●● 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.
●● Stock Insurer
Answer: An insurer that is owned by its stockholders and formed as a
corporation for the purpose of earning a profit for the stockholders.
●● Mutual Insurer
Answer: An insurer that is owned by its policyholders and formed as a
corporation for the purpose of providing insurance to them.
●● Surplus Lines Insurer
Answer: A nonadmitted insurer that is eligible to insure risks that have
been exported by a surplus lines licensee in accordance with a surplus
lines law.
●● Reinsurance
Answer: The transfer of insurance risk from one insurer to another
through a contractual agreement under which one insurer (the reinsurer)
agrees, in return for a reinsurance premium, to indemnify another insurer
(the primary insurer) for some or all of the financial consequences of
certain loss exposures covered by the primary's insurance policies.
