AINS 101 - Increasing Your Insurance IQ Exam Questions And Answers

AINS 101 - Increasing Your Insurance IQ Exam Questions And Answers Which of the following represents uncertainty about outcomes that can be negative or positive? - answerRisk The primary role of insurance is to - answerIndemnify individuals and organizations for covered losses. The insurance agent suggested that Sally's Snack Shop buy a policy that combines property, crime, and liability coverage into one policy. This is referred to as as a(n) - answerCommercial package policy (CPP) Coverage for money and other business property from various causes of loss such as burglary, robbery, theft, and employee dishonesty typically provided by - answerCommercial crime insruance Insurance Company wrote a commercial liability policy for a manufacturer of off-road motorcycles. The potential cost of the insured's loss exposure exceed Insurance Company's capacity. Insurance Company could consider which one of the following types of contractual transferring agreement to meet its needs? - answerReinsurance Which one of the following correctly describes a reason for government involvement in property-casualty insruance? - answerGovernment programs can meet legitimate public demands unmet by private insurers. AVA is a start up company that develops safety technologies that can be sold to companies that are producing autonomous vehicles. One Technology AVA is developing allows an autonomous vehicle to detect, extract, and analyze images; and then to respond to those images. For example, the technology would detect a presence in a crosswalk, extract the image, and a computer would analyze the image. When the image was determined to be a human being, the vehicle would slow down or stop until the crosswalk was clear. This technology, which is designed to capture and analyze images, and to act on the recognition of the image id called - answerComputer vision MFC offers a wide array of mutual fund options to investors. Each mutual fund has a different fund objective and set of investment guidelines that apply to the fund. While MFC gives considerable freedom to its fund portfolio managers, they are required to abide by the funds investment guidelines. To monitor compliance, MFC developed a computer algorithm. The computer algorithm continuously monitors each fund's compliance with investment guidelines. If a fund manager violates the investment guidelines, the computer immediately notifies MFC's internal control director, and corrective action is taken. MFC's use of the computer algorithm to monitor investment compliance and to provide notification when corrective action is necessary illustrates use of - answerArtificial intelligence Which one of the following statements is correct regarding the benefits provided by insurance? - answerInsurance helps reduce the financial burden to society by compensating accident victims. As a single mother on a very tight budget, Ciara is tempted to skimp on her insurance. However, her friend Mehmet tells her not to skimp on insurance, because it will help manage her cash flow. Which one of the following examples best illustrates Mehmet's point? - answerWhen her car's windshield breaks, Ciara has to pay only $100 of the $600 cost of replacing it. Shelton Industries experienced a fire in its manufacturing plant. Several employees suffered burns and smoke inhalation injuries as they tried to escape the building. Which one of Shelton Industries' commercial property-casualty policies would pay for the employee's injuries and illnesses? - answerWorkers compensation insurance A homeowners policy is a type of - answerPersonal property-casualty insurance policy. All of the following are types of private insurers, EXCEPT: - answerState workers compensation funds An insurer that was formed for the purpose of earning a profit for its stockholders is a - answerStock insurer ABC company experienced a dramatic ideological shift in corporate policies after a national election. This is an example of which one of the following quadrants of risk? - answerStrategic Risk Jimmy decided to buy a house in his neighborhood that had been foreclosed on by the bank that held the mortgage. He is hoping to do some renovation and repair work on the house, and then sell it for a quick profit. Which one of the following types of risk is this for Jimmy? - answerSpeculative ri