AINS 101 EXAM | ASSOCIATE IN INSURANCE
STUDY QUESTIONS AND CORRECT ANSWERS
| UPDATED 2024/2025
A CSR is typically known to also play the roles of
- Correct Answer - Producer
What is related to a CSR's efforts with clients?
- Correct Answer - Profitability in the insurance business is directly
linked to customer retention
What is the cost of risk?
- Correct Answer - Cost of risk involves the total cost of all aspects of
the organization that relate to managing risk
Why is a producer always alert to clients' loss exposures?
- Correct Answer - Implemented risk management techniques may prove
to be ineffective or become obsolete
Characteristics of insurable loss exposures?
- Correct Answer - Definite in time, cause, and location.
Ideally insurable loss exposure is to help assure that..?
- Correct Answer - The insurer is able to charge a premium that the
insured can afford to pay
Who drafts a contract of adhesion?
, - Correct Answer - Insurer
What type of contract is an insurance contract considered?
- Correct Answer - Conditional contract because the parties have to
perform only under certain conditions
What is used when preprinted forms do not provide the terms of
coverage needed by a particular insured or small group of insureds?
- Correct Answer - Manuscript form
What are other forms an insurance contract make include to modify the
basic policy form?
- Correct Answer - Endorsements
What are exclusions used for?
- Correct Answer - To prevent duplicate coverage
Where are the differences found between property and liability policies?
- Correct Answer - Insurance agreements
How does insurance help manage cash flows?
- Correct Answer - Paying a monthly premium will help lower the amount
paid when a repair is needed
What is a mutual insurance company?
- Correct Answer - An insurer which is owned by its policyholders and
formed as a corporation for the purpose of providing insurance to them
What is a stock insurer?
STUDY QUESTIONS AND CORRECT ANSWERS
| UPDATED 2024/2025
A CSR is typically known to also play the roles of
- Correct Answer - Producer
What is related to a CSR's efforts with clients?
- Correct Answer - Profitability in the insurance business is directly
linked to customer retention
What is the cost of risk?
- Correct Answer - Cost of risk involves the total cost of all aspects of
the organization that relate to managing risk
Why is a producer always alert to clients' loss exposures?
- Correct Answer - Implemented risk management techniques may prove
to be ineffective or become obsolete
Characteristics of insurable loss exposures?
- Correct Answer - Definite in time, cause, and location.
Ideally insurable loss exposure is to help assure that..?
- Correct Answer - The insurer is able to charge a premium that the
insured can afford to pay
Who drafts a contract of adhesion?
, - Correct Answer - Insurer
What type of contract is an insurance contract considered?
- Correct Answer - Conditional contract because the parties have to
perform only under certain conditions
What is used when preprinted forms do not provide the terms of
coverage needed by a particular insured or small group of insureds?
- Correct Answer - Manuscript form
What are other forms an insurance contract make include to modify the
basic policy form?
- Correct Answer - Endorsements
What are exclusions used for?
- Correct Answer - To prevent duplicate coverage
Where are the differences found between property and liability policies?
- Correct Answer - Insurance agreements
How does insurance help manage cash flows?
- Correct Answer - Paying a monthly premium will help lower the amount
paid when a repair is needed
What is a mutual insurance company?
- Correct Answer - An insurer which is owned by its policyholders and
formed as a corporation for the purpose of providing insurance to them
What is a stock insurer?
