AINS 101 ACTUAL EXAM 2024 COMPLETE 250
QUESTIONS AND CORRECT DETAILED ANSWERS
(VERIFIED ANSWERS) |ALREADY GRADED A+||BRAND
NEW!!
Risk control can assist the claims department by - ANSWER: Providing laboratory
analyses.
Sports, Inc. is looking to obtain a commercial property policy on its building for
$400,000. If their insurer decides to charge them a rate of $0.50 per $100 of building
insurance, what premium must Sports, Inc. pay? - ANSWER: $2,000
Which one of the following is the correct formula for calculating an insurer's
combined ratio? - ANSWER: Loss ratio + expense ratio
Maria is a new producer who wears many hats when forming relationships and then
serving her established customers. In this capacity, which one of the following
scenarios most accurately describes her ongoing work wearing the hat of "claims
handler"? - ANSWER: Veronica directly contacts Maria for guidance on how to report
a stolen car, Maria provides that, and claims rep Sean takes over after an
introduction from Maria.
Riley Turner is performing a comprehensive evaluation of Hardwick Enterprises to
make sure its insurance and risk management efforts are serving the organization
appropriately. Which one of the following will be true in regard to this effort? -
ANSWER: Besides risk management goals being attainable, they should also pose a
challenge.
Erin has recently graduated from college and relocated to Chicago. She has
purchased a car and rented an apartment and now needs to purchase insurance. Erin
is looking for minimum coverages and the lowest price available. Which one of the
following is likely the best distribution system to meet Erin's needs? - ANSWER:
Direct response
Jennie recently purchased a personal auto policy from Westcox Insurers. Three
weeks later, Jennie reported her car was stolen from her driveway during the middle
of the day. Upon further investigation, claims representative Harry finds out the
home address he has on file for Jennie does not match the location where the theft
occurred. In light of this scenario, which one of the following would be particularly
helpful for Harry to pursue concerning Jenny's claim? - ANSWER: Harry can verify
Jennie's address and other possible helpful information by reviewing her policy
which has her original application information attached.
If an insured wants to receive "new for old" in the event of a property loss, he or she
would purchase: - ANSWER: Replacement cost
, 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? - ANSWER: Identifying the policy, calculating a
loss reserve, determining the cause of loss, preparing a loss statement
John's two-year-old bicycle was stolen. The bicycle's purchase price was $700, its
current replacement cost is $800, and depreciation was estimated at $450. What
was the bicycle's actual cash value? - ANSWER: $350 --> $800 - $450 = $350
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? - ANSWER: Moral hazards
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.
Which one of the following best explains why producers should be alert to changes
in clients' loss exposures? - ANSWER: Implemented risk management techniques
may prove to be ineffective or become obsolete.
Because insurance contracts impose an obligation for ethical practices and behaviors
on the parties while dealing with one another, an insurance contract is called a -
ANSWER: Contract of utmost good faith
Rachel is considering investing in the stock of an insurance company. Which one of
the following is likely to provide the best indication of the insurer's financial position
at this point in time? - ANSWER: Balance sheet
Martina, a premium auditor for Cintriell Insurance Company is conducting a
premium audit for Carolina's Cookies. Carolina mentioned to Martina that she is
opening a coffee shop at another location. By sharing this information, Martina
would provide a contribution to which one of the following insurer functions? -
ANSWER: Underwriting
James works very closely with producers on a daily basis. In addition to evaluating
the applicants that the producers submit, James is involved in presenting policy
quotations, processing policy endorsements, helping to explain coverages, and
making coverage recommendations. James works as a - ANSWER: Field underwriter
Margaret was severely injured and scarred due to a recent accident. Which one of
the following is an example of general damages Margaret received? - ANSWER:
Compensation for disfigurement
QUESTIONS AND CORRECT DETAILED ANSWERS
(VERIFIED ANSWERS) |ALREADY GRADED A+||BRAND
NEW!!
Risk control can assist the claims department by - ANSWER: Providing laboratory
analyses.
Sports, Inc. is looking to obtain a commercial property policy on its building for
$400,000. If their insurer decides to charge them a rate of $0.50 per $100 of building
insurance, what premium must Sports, Inc. pay? - ANSWER: $2,000
Which one of the following is the correct formula for calculating an insurer's
combined ratio? - ANSWER: Loss ratio + expense ratio
Maria is a new producer who wears many hats when forming relationships and then
serving her established customers. In this capacity, which one of the following
scenarios most accurately describes her ongoing work wearing the hat of "claims
handler"? - ANSWER: Veronica directly contacts Maria for guidance on how to report
a stolen car, Maria provides that, and claims rep Sean takes over after an
introduction from Maria.
Riley Turner is performing a comprehensive evaluation of Hardwick Enterprises to
make sure its insurance and risk management efforts are serving the organization
appropriately. Which one of the following will be true in regard to this effort? -
ANSWER: Besides risk management goals being attainable, they should also pose a
challenge.
Erin has recently graduated from college and relocated to Chicago. She has
purchased a car and rented an apartment and now needs to purchase insurance. Erin
is looking for minimum coverages and the lowest price available. Which one of the
following is likely the best distribution system to meet Erin's needs? - ANSWER:
Direct response
Jennie recently purchased a personal auto policy from Westcox Insurers. Three
weeks later, Jennie reported her car was stolen from her driveway during the middle
of the day. Upon further investigation, claims representative Harry finds out the
home address he has on file for Jennie does not match the location where the theft
occurred. In light of this scenario, which one of the following would be particularly
helpful for Harry to pursue concerning Jenny's claim? - ANSWER: Harry can verify
Jennie's address and other possible helpful information by reviewing her policy
which has her original application information attached.
If an insured wants to receive "new for old" in the event of a property loss, he or she
would purchase: - ANSWER: Replacement cost
, 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? - ANSWER: Identifying the policy, calculating a
loss reserve, determining the cause of loss, preparing a loss statement
John's two-year-old bicycle was stolen. The bicycle's purchase price was $700, its
current replacement cost is $800, and depreciation was estimated at $450. What
was the bicycle's actual cash value? - ANSWER: $350 --> $800 - $450 = $350
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? - ANSWER: Moral hazards
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.
Which one of the following best explains why producers should be alert to changes
in clients' loss exposures? - ANSWER: Implemented risk management techniques
may prove to be ineffective or become obsolete.
Because insurance contracts impose an obligation for ethical practices and behaviors
on the parties while dealing with one another, an insurance contract is called a -
ANSWER: Contract of utmost good faith
Rachel is considering investing in the stock of an insurance company. Which one of
the following is likely to provide the best indication of the insurer's financial position
at this point in time? - ANSWER: Balance sheet
Martina, a premium auditor for Cintriell Insurance Company is conducting a
premium audit for Carolina's Cookies. Carolina mentioned to Martina that she is
opening a coffee shop at another location. By sharing this information, Martina
would provide a contribution to which one of the following insurer functions? -
ANSWER: Underwriting
James works very closely with producers on a daily basis. In addition to evaluating
the applicants that the producers submit, James is involved in presenting policy
quotations, processing policy endorsements, helping to explain coverages, and
making coverage recommendations. James works as a - ANSWER: Field underwriter
Margaret was severely injured and scarred due to a recent accident. Which one of
the following is an example of general damages Margaret received? - ANSWER:
Compensation for disfigurement
