AINS 101 Exam With 100% Correct Answers

AINS 101 Exam With 100% Correct Answers Which one of the following statements is correct regarding the benefits provided by insurance? A. Insurance reduces the financial consequences of loss exposures but not the related uncertainty. B. The reduction in losses paid by insurers due to risk control measures benefits individual insureds but not society as a whole. C. Insurance helps reduce the financial burden to society by compensating accident victims. D. The primary role of insurance is to meet mandatory insurance requirements. - answerC. Insurance helps reduce the financial burden to society by compensating accident victims. Which one of the following represents uncertainty about outcomes that can be negative or positive? A. Risk B. Transfer C. Loss exposure D. Pooling - answerA. Risk The insurance agent suggested that Sally's Snack Shop buy a policy that combines property, crime, and liability coverages into one policy. This is referred to as a(n) A. Commercial package policy (CPP). B. Commercial umbrella policy. C. Employee dishonesty policy. D. Workers compensation policy. - answerA. Commercial package policy (CPP). Commercial Umbrella Policy - answerType of policy that provides broad coverage for an insured's liability over and above liability covered by an underlying contract. Commercial Crime Insurance - answerCoverage for money and other business property from various causes of loss such as burglary, robbery, theft, and employee dishonesty An insurer that was formed for the purpose of earning a profit for its stockholders is a A. Mutual insurer. B. Reciprocal insurance exchange. C. Stock insurer. D. Captive insurer. - answerC. Stock insurer. Mutual Insurer - answerAn insurer that is owned by its policyholders and formed as a corporation for the purpose of providing insurance to them. Artificial intelligence - answera subdiscipline of computer science that attempts to simulate human thinking Mechanical sensors - answermonitoring devices that can be used to determine position of components, force applied, or movement of parts. Which one of the following best describes the concept of pooling? A. The financial consequences of unanticipated losses are transferred to an insurer. B. Insureds share the cost of each other's losses. C. Risk management is concerned with positive and negative risks. D. Insurance benefits society as a whole. - answerB. Insureds share the cost of each other's losse