AINS 101 REAL EXAM 120 QUESTIONS AND CORRECT ANSWERS
2025 LATES ALL MOST TESTED QUESTIONS COVERED// GRADED A+
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 -
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 -
ANSWER-Contract of adhesion
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
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: - 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? - ANSWER-Moral hazards
Moral hazards - ANSWER-include questionable business practices or a failing
business.
,Many auto manufacturers have automated a portion of their assembly lines by
introducing a smart product. The smart product performs repetitive tasks, such
as making the same weld on each vehicle frame as it passes the smart product.
These smart products, which can be fixed or mobile, reduce repetitive motion
injuries. They can also be used to perform dangerous tasks and for heavy-lifting
jobs. These smart products, enabled by artificial intelligence, are called -
ANSWER-Robots
Why are insurance regulators concerned about the effects of large
catastrophes? - ANSWER-Insurers may become insolvent
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.
Sota's Superstore has recently become an insured of Keithly Insurance
Company. Kaito, Keithly's premium auditor, is being sent to conduct an advance
audit. Which one of the following tasks will Kaito do to assist underwriting? -
ANSWER-Classify the various exposures
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
When the Smiths purchased their first home, they were required to purchase a
homeowners insurance policy in order to get a mortgage. Because they did not
have a lot of extra money in their budget, they wanted to buy as little insurance
coverage as possible. The Smiths' insurance agent advised them that if they
purchase an insurance policy that adequately covers damage to their home and
personal property, they only have to budget for the insurance premium, rather
than the full cost of rebuilding the house and replacing its contents. Which one
, of the following key components of insurance is the insurance agent explaining
to the Smiths? - ANSWER-Transfer
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
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.
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.
Which one of the following represents uncertainty about outcomes that can be
negative or positive? - ANSWER-Risk
The insurance agent suggested that Sally's Snack Shop buy a policy that
combines property, crime, and liability coverages into one policy. This is
referred to as a(n) - ANSWER-Commercial package policy (CPP)
Shelton Industries experienced a fire in its manufacturing plant. Several
employees suffered burns and smoke inhalation injuries as they tried to escape
2025 LATES ALL MOST TESTED QUESTIONS COVERED// GRADED A+
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 -
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 -
ANSWER-Contract of adhesion
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
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: - 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? - ANSWER-Moral hazards
Moral hazards - ANSWER-include questionable business practices or a failing
business.
,Many auto manufacturers have automated a portion of their assembly lines by
introducing a smart product. The smart product performs repetitive tasks, such
as making the same weld on each vehicle frame as it passes the smart product.
These smart products, which can be fixed or mobile, reduce repetitive motion
injuries. They can also be used to perform dangerous tasks and for heavy-lifting
jobs. These smart products, enabled by artificial intelligence, are called -
ANSWER-Robots
Why are insurance regulators concerned about the effects of large
catastrophes? - ANSWER-Insurers may become insolvent
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.
Sota's Superstore has recently become an insured of Keithly Insurance
Company. Kaito, Keithly's premium auditor, is being sent to conduct an advance
audit. Which one of the following tasks will Kaito do to assist underwriting? -
ANSWER-Classify the various exposures
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
When the Smiths purchased their first home, they were required to purchase a
homeowners insurance policy in order to get a mortgage. Because they did not
have a lot of extra money in their budget, they wanted to buy as little insurance
coverage as possible. The Smiths' insurance agent advised them that if they
purchase an insurance policy that adequately covers damage to their home and
personal property, they only have to budget for the insurance premium, rather
than the full cost of rebuilding the house and replacing its contents. Which one
, of the following key components of insurance is the insurance agent explaining
to the Smiths? - ANSWER-Transfer
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
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.
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.
Which one of the following represents uncertainty about outcomes that can be
negative or positive? - ANSWER-Risk
The insurance agent suggested that Sally's Snack Shop buy a policy that
combines property, crime, and liability coverages into one policy. This is
referred to as a(n) - ANSWER-Commercial package policy (CPP)
Shelton Industries experienced a fire in its manufacturing plant. Several
employees suffered burns and smoke inhalation injuries as they tried to escape
