AINS 101 Exam Questions with 100% Correct Answers

AINS 101 Exam Questions with 100% Correct Answers AINS 101 Exam Questions with 100% Correct Answers A liability loss has the following damages: Medical expenses:$10,000Damages for disfigurement:$50,000Damages for pain and suffering:$100,000 What is the amount of special damages? - Answer $ 10,000 A stock insurer differs from a reciprocal insurance exchange in which one of the following ways? - Answer Stockholders own a stock insurer. Members own a reciprocal insurance exchange. Actual cash value (ACV) is - Answer Replacement cost minus depreciation Adhering to the characteristics of an ideally insurable loss exposure in selling insurance help assure that - Answer The insurer is able to charge a premium that the insured can afford to pay After Marvin's car was stolen, and he was reimbursed for the loss by Greatson Insurance, the police found and returned the vehicle, which was dented and spray painted, but still had parts that could be usable. Greatson's rights to recover and sell or otherwise dispose of insured property on which it has paid a total loss are called - Answer Salvage rights Alicia works for the Drewman Agency, Sandi at insurer Greenway Insurance, and Rosa at Grossman Brokers, all as customer service representatives. Which one of the following is true regarding their work? - Answer Alicia can process policy endorsements and explain coverage to her customers All of the following are categories of liabilities found on an insurer's balance sheet, EXCEPT: - Answer Policyholders' surplus All of the following are sources of underwriting information to evaluate an insurance submission, EXCEPT: - Answer Underwriting authority reports Allian Insurance Company is a growing regional insurer selling policies in three states, specializing in personal auto and homeowners policies. Which one of the following is most likely true regarding Allian and the policies it sells? - Answer Allian issues more preprinted policies than manuscript forms. An insurance policy is considered a contract of adhesion when it is drafted by the - Answer Insurer An insurer has decided to take an extremely narrow interpretation of a property insurance policy provision to limit the number of loss payments it will need to make. It realizes that its interpretation is probably wrong, but it knows that individual insured's loss amounts will be small, such that most insureds will not take the trouble to file lawsuits against it. The insurer may be violating the principle that an insurance policy is - Answer A contract of utmost good faith An insurer that was formed for the purpose of earning a profit for its stockholders is a - Answer Stock insurer An insurer's financial statement shows a loss reserve and an unearned premium reserve. These reserves are part of the insurer's - Answer Total liabilities 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? - Answer When her car's windshield breaks, Ciara has to pay only $100 of the $600 cost of replacing it.