AINS 21 practice exam | 349 Questions and Answers 2024 Complete;100% verified

when selecting a distribution channel, which one of the following is important consideration with regard to customer needs and characteristics - Which of the following statements is correct regarding characteristics of ideally insurable loss exposures - ideally, loss exposures should be spread across a large number of similar exposure units within the same period The type of insurance that provides periodic income payments to an insured who is unable to work because of sickness or injury is - Disability income insurance Retention is often used in combination with insurance as a way of treating loss exposures. One of the major downsides of individuals using retention alone is - The potential for financial ruin A loss exposure is - Any condition that presents the possibility of a loss Liability coverage for loss exposures arising from a business organizations premises and operations, its products, or its completed work is typically provided by - Commercial general liability insurance Though premiums are an obvious cost of insurance, many insureds believe that are too high because - Benefits are intangible until loss occurs Insurance is not the only risk management transfer technique. When circumstances are appropriate, transfer can be accomplished through - noninsurance transfer technique Which one of the following is an example of a fortuitous loss - An unknown vandal spray-paints graffiti on the insured's garage Which one of the following statements is correct regarding the benefits that insurance provides - Investment income helps keep insurance premiums at a reasonable levelClaim buildup is considered to be among which one of the following costs of insurance - increased losses The primary role of insurance is to - indemnify individuals and organizations for covered losses Coverage for money, securities, and other property from various causes of loss such as burglary, robbery, theft, and employee dishonesty typically is provided by - commercial crime insurance Which of the following is an opportunity cost of insurance - An insureds funds that could be invested elsewhere if purchasing insurance were not necessary Coverage for miscellaneous types of property such as movable property, goods in domestic transit, and property use in transportation and communication, typically is provided by - inland marine insurance For insurers to utilize pooling most effectively and prevent catastrophic losses, the insured exposure units need to be - independent Some loss exposures are not easy to retain, avoid, or control. What risk management techniques is frequently used to treat such exposures - transfer Sometimes the existence of insurance encourages losses. the result of this phenomenon is that in - increases the total cost of insurance 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 - promote risk control