AINS 101: CH 2 EXAM QUESTIONS WITH
COMPLETE SOLUTIONS LATEST
2025/2026 A+ GRADED 100% VERIFIED
Solvency - ANS- The ability of an insurer to meet its financial obligations as they become
due, even those resulting from insured losses that may be claimed several years in the
future.
Income Statement - ANS- The financial statement that reports an organization's profit or
loss for a specific period by comparing the revenues generated with the expenses
incurred to produce those revenues.
Earned premiums - ANS- The portion of the written premiums that apply to the part of
the policy period that has already occurred.
Underwriting income - ANS- Income an insurer earns from premiums paid by
policyholders minus incurred losses and underwriting expenses.
Balance Sheet - ANS- The financial statement that reports the assets, liabilities, and
owners' equity of an organization as of a specific date.
Policyholders surplus - ANS- An insurer's assets minus its liabilities, which represents
its net worth.
Loss adjustment expenses - ANS- The expense that an insurer incurs to investigate,
defend, and settle claims according to the terms specified in the insurance policy.
Assets - ANS- Types of property, both tangible and intangible, owned by an entity.
Liabilities - ANS- Financial obligations, or debts, owed by a company to another entity,
usually the policyholder in the case of an insurer.
Investment income - ANS- Interest, dividends, and net capital gains received by an
insurer from the insurer's financial assets, minus its investment expenses.
Loss reserve - ANS- An estimate of the amount of money the insurer expects to pay in
the future for losses that have occurred.
COMPLETE SOLUTIONS LATEST
2025/2026 A+ GRADED 100% VERIFIED
Solvency - ANS- The ability of an insurer to meet its financial obligations as they become
due, even those resulting from insured losses that may be claimed several years in the
future.
Income Statement - ANS- The financial statement that reports an organization's profit or
loss for a specific period by comparing the revenues generated with the expenses
incurred to produce those revenues.
Earned premiums - ANS- The portion of the written premiums that apply to the part of
the policy period that has already occurred.
Underwriting income - ANS- Income an insurer earns from premiums paid by
policyholders minus incurred losses and underwriting expenses.
Balance Sheet - ANS- The financial statement that reports the assets, liabilities, and
owners' equity of an organization as of a specific date.
Policyholders surplus - ANS- An insurer's assets minus its liabilities, which represents
its net worth.
Loss adjustment expenses - ANS- The expense that an insurer incurs to investigate,
defend, and settle claims according to the terms specified in the insurance policy.
Assets - ANS- Types of property, both tangible and intangible, owned by an entity.
Liabilities - ANS- Financial obligations, or debts, owed by a company to another entity,
usually the policyholder in the case of an insurer.
Investment income - ANS- Interest, dividends, and net capital gains received by an
insurer from the insurer's financial assets, minus its investment expenses.
Loss reserve - ANS- An estimate of the amount of money the insurer expects to pay in
the future for losses that have occurred.
