Bundle
AINS ALL EXAMS COMBINED 2024-2025
The primary role of insurance is to - Correct answer-Indemnify individuals and organizations for covered
losses.
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 flows. Which
one of the following examples best illustrates Mehmet's point? - Correct answer-When her car's
windshield breaks, Ciara has to pay only $100 of the $600 cost of replacing it.
A homeowners policy is a type of - Correct answer-Personal property-casualty insurance policy.
Coverage for money and other business property from various causes of loss such as burglary, robbery,
theft, and employee dishonesty typically is provided by - Correct answer-Commercial crime insurance.
,Which one of the following describes the characteristics of a mutual insurance company? - Correct
answer-A corporation owned by policyholders that provides insurance to its policyholders.
An insurer that was formed for the purpose of earning a profit for its stockholders is a - Correct answer-
Stock insurer
Autonomous Vehicle Applications (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 the
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; is called - Correct answer-Computer
vision
In an effort to reduce expenses, increase profitability, and reduce human errors; ABC Insurance
Company decided to automate most of its personal lines underwriting function. The company now uses
standardized application forms that are submitted electronically to one of the company's regional
offices. At each regional office, a computer with a scanner reads the applications. The computer has
been programmed with acceptable answers to the questions. If the answers on the application are all
acceptable, the policy is automatically issued. Rejected applications are automatically forwarded to a
human underwriter who reviews them. The use of this technology has reduced the company's expense
ratio by two and a half percent, and reduced the time it takes to issue a policy. ABC Insurance
Company's use of computers to evaluate applications electronically is an application of - Correct answer-
Artificial intelligence
Carlos is new to the insurance business and is learning about insurance regulation and what he, now
working with Grady Insurance, will need to be aware of regarding the subject of compliance. Which one
of the following will Carlos find is accurate as he better understands why insurance is regulated? -
Correct answer-Insurance regulation protects customers by guaranteeing insurance is available and
accessible to everyone who needs it
One of the reasons for insurance regulation is to prevent destructive competition. In which one of the
following scenarios would destructive competition be exhibited? - Correct answer-East Insurance comes
up with a new rate structure allowing "preferred customers" discounted policies when they continually
renew year after year; East eventually loses needed revenue but is rewarded by its competitors leaving
the market.
,What term refers to the ability of an insurer to meet its obligations as they become due? - Correct
answer-Solvency
An insurer's financial statement shows a loss reserve and an unearned premium reserve. These reserves
are part of the insurer's - Correct answer-Total liabilities.
Admitted assets are types of property that regulators allow insurers to show as assets on their financial
statements because they are - Correct answer-Easily converted to cash
Which one of the following is a nonadmitted asset? - Correct answer-Office equipment
The financial report for LMN Insurance contains the following information:
Earned premiums $8,000,000Written premiums $10,000,000Incurred losses $6,000,000Incurred
underwriting expenses $4,000,000
What is LMN Insurance's expense ratio? - Correct answer-40%
The financial report for Hometown Insurer contains the following information:
Earned premiums $4,000,000
Written premiums $5,000,000
Net investment income $1,000,000
Incurred Losses $3,000,000
Incurred underwriting expense $2,000,000
What is Hometown Insurer's expense ratio? - Correct answer-40%
Bill is an insurance producer for and employed by ABC Insurance Company (ABC). He represents only
ABC when marketing insurance products, and uses an administrative staff also employed by ABC. Bill is a
producer in the - Correct answer-Direct writer marketing system
, Because the insurance company usually determines policy wording and the insured has little choice but
to "take it or leave it," an insurance contract is a - Correct answer-Contract of adhesion
Which one of the following best explains why producers should be alert to changes in clients' loss
exposures? - Correct answer-Implemented risk management techniques may prove to be ineffective or
become obsolete
At Greenfield Insurance Company, Bernadette and Rachel are corporate underwriters, and Tomas and
Jose are field underwriters. All of the following are underwriting activities typically performed by
corporate (or staff) underwriters like Bernadette and Rachel, EXCEPT: - Correct answer-Support
producers and insureds
Joel is the underwriter for Stanton Industries. He received a notice from the premium auditor on the
account. After a recent visit to the insured's location, the auditor wanted to make Joel aware of a
decline in the business and some questionable business practices. Which one of the following types of
hazards is the auditor identifying? - Correct answer-Moral hazards
Moral hazards - Correct answer-include questionable business practices or a failing business.
James West is a claims rep with Hatters Insurance. As he learns how to handle a claim from start to
finish, which one of the following best describes the correct order for him to follow during this process?
- Correct answer-Identifying the policy, calculating a loss reserve, determining the cause of loss,
preparing a loss statement
Margaret was severely injured and scarred due to a recent accident. Which one of the following is an
example of general damages Margaret received? - Correct answer-Compensation for disfigurement
Donna is an insurance producer. She makes an appointment with potential policyholder Sandie to
review her loss exposures. She asks Sandie to complete a questionnaire to assist her in this effort. Donna
is conducting a - Correct answer-Risk management review
Rachel is a new employee of Westley Insurance, and has been asked to review some existing policies to
become familiar with the types of policies she will be working with. Which one of the following will
Rachel find is true as she conducts her review? - Correct answer-Rachel finds the policy begins with a
coverage overview and then goes into more coverage details.
AINS ALL EXAMS COMBINED 2024-2025
The primary role of insurance is to - Correct answer-Indemnify individuals and organizations for covered
losses.
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 flows. Which
one of the following examples best illustrates Mehmet's point? - Correct answer-When her car's
windshield breaks, Ciara has to pay only $100 of the $600 cost of replacing it.
A homeowners policy is a type of - Correct answer-Personal property-casualty insurance policy.
Coverage for money and other business property from various causes of loss such as burglary, robbery,
theft, and employee dishonesty typically is provided by - Correct answer-Commercial crime insurance.
,Which one of the following describes the characteristics of a mutual insurance company? - Correct
answer-A corporation owned by policyholders that provides insurance to its policyholders.
An insurer that was formed for the purpose of earning a profit for its stockholders is a - Correct answer-
Stock insurer
Autonomous Vehicle Applications (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 the
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; is called - Correct answer-Computer
vision
In an effort to reduce expenses, increase profitability, and reduce human errors; ABC Insurance
Company decided to automate most of its personal lines underwriting function. The company now uses
standardized application forms that are submitted electronically to one of the company's regional
offices. At each regional office, a computer with a scanner reads the applications. The computer has
been programmed with acceptable answers to the questions. If the answers on the application are all
acceptable, the policy is automatically issued. Rejected applications are automatically forwarded to a
human underwriter who reviews them. The use of this technology has reduced the company's expense
ratio by two and a half percent, and reduced the time it takes to issue a policy. ABC Insurance
Company's use of computers to evaluate applications electronically is an application of - Correct answer-
Artificial intelligence
Carlos is new to the insurance business and is learning about insurance regulation and what he, now
working with Grady Insurance, will need to be aware of regarding the subject of compliance. Which one
of the following will Carlos find is accurate as he better understands why insurance is regulated? -
Correct answer-Insurance regulation protects customers by guaranteeing insurance is available and
accessible to everyone who needs it
One of the reasons for insurance regulation is to prevent destructive competition. In which one of the
following scenarios would destructive competition be exhibited? - Correct answer-East Insurance comes
up with a new rate structure allowing "preferred customers" discounted policies when they continually
renew year after year; East eventually loses needed revenue but is rewarded by its competitors leaving
the market.
,What term refers to the ability of an insurer to meet its obligations as they become due? - Correct
answer-Solvency
An insurer's financial statement shows a loss reserve and an unearned premium reserve. These reserves
are part of the insurer's - Correct answer-Total liabilities.
Admitted assets are types of property that regulators allow insurers to show as assets on their financial
statements because they are - Correct answer-Easily converted to cash
Which one of the following is a nonadmitted asset? - Correct answer-Office equipment
The financial report for LMN Insurance contains the following information:
Earned premiums $8,000,000Written premiums $10,000,000Incurred losses $6,000,000Incurred
underwriting expenses $4,000,000
What is LMN Insurance's expense ratio? - Correct answer-40%
The financial report for Hometown Insurer contains the following information:
Earned premiums $4,000,000
Written premiums $5,000,000
Net investment income $1,000,000
Incurred Losses $3,000,000
Incurred underwriting expense $2,000,000
What is Hometown Insurer's expense ratio? - Correct answer-40%
Bill is an insurance producer for and employed by ABC Insurance Company (ABC). He represents only
ABC when marketing insurance products, and uses an administrative staff also employed by ABC. Bill is a
producer in the - Correct answer-Direct writer marketing system
, Because the insurance company usually determines policy wording and the insured has little choice but
to "take it or leave it," an insurance contract is a - Correct answer-Contract of adhesion
Which one of the following best explains why producers should be alert to changes in clients' loss
exposures? - Correct answer-Implemented risk management techniques may prove to be ineffective or
become obsolete
At Greenfield Insurance Company, Bernadette and Rachel are corporate underwriters, and Tomas and
Jose are field underwriters. All of the following are underwriting activities typically performed by
corporate (or staff) underwriters like Bernadette and Rachel, EXCEPT: - Correct answer-Support
producers and insureds
Joel is the underwriter for Stanton Industries. He received a notice from the premium auditor on the
account. After a recent visit to the insured's location, the auditor wanted to make Joel aware of a
decline in the business and some questionable business practices. Which one of the following types of
hazards is the auditor identifying? - Correct answer-Moral hazards
Moral hazards - Correct answer-include questionable business practices or a failing business.
James West is a claims rep with Hatters Insurance. As he learns how to handle a claim from start to
finish, which one of the following best describes the correct order for him to follow during this process?
- Correct answer-Identifying the policy, calculating a loss reserve, determining the cause of loss,
preparing a loss statement
Margaret was severely injured and scarred due to a recent accident. Which one of the following is an
example of general damages Margaret received? - Correct answer-Compensation for disfigurement
Donna is an insurance producer. She makes an appointment with potential policyholder Sandie to
review her loss exposures. She asks Sandie to complete a questionnaire to assist her in this effort. Donna
is conducting a - Correct answer-Risk management review
Rachel is a new employee of Westley Insurance, and has been asked to review some existing policies to
become familiar with the types of policies she will be working with. Which one of the following will
Rachel find is true as she conducts her review? - Correct answer-Rachel finds the policy begins with a
coverage overview and then goes into more coverage details.
