AINS 101 First Exam Practice
Questions and Answers
A. The insurer is able to charge a premium that the insured can afford to pay. -
Answer- Adhering to the characteristics of an ideally insurable loss exposure in
selling insurance help assure that
Select one:
A. The insurer is able to charge a premium that the insured can afford to pay.
B. The losses associated with it typically involve small amounts.
C. The insurer is able to predict the amount and timing of each future loss.
D. The insurer can charge a high premium for the coverage.
B. An unknown vandal spray-paints graffiti on the insured's garage. - Answer- Claims
supervisor Charlotte is reviewing the incoming claims for the day to decide which
ones to assign to various claims reps. Of those claims, which one of the following
descriptions will Charlotte find is an example of a fortuitous loss?
Select one:
A. An insured demolishes a deck that has been allowed to rot.
B. An unknown vandal spray-paints graffiti on the insured's garage.
C. Insureds intentionally set a fire and burn their house down.
D. The value of an insured's home decreases due to a lack of maintenance.
C. Conditional contract. - Answer- An insurer will make a loss payment if an insured
loss occurs and if the insured performs certain duties. This illustrates that an
insurance policy is a
Select one:
A. Personal contract.
B. Contract of adhesion.
C. Conditional contract.
D. Contract of indemnity.
D. A contract of utmost good faith. - Answer- 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
Select one:
A. A conditional contract.
B. A contract of adhesion.
C. A contract of indemnity.
D. A contract of utmost good faith.
D. Workers compensation - Answer- Which one of the following types of insurance
policies would be most likely to incorporate state-specific statutory terms?
Select one:
A. Homeowners
, B. Professional liability
C. Auto
D. Workers compensation
A. Draft a manuscript form to meet the customer's needs. - Answer- When preprinted
forms do not provide the terms of coverage needed by a particular insured or small
group of insureds, the insurer may
Select one:
A. Draft a manuscript form to meet the customer's needs.
B. Incorporate statutes into a policy.
C. Ask the customer to resubmit an application.
D. Work with an advisory organization to develop a form.
A. Insuring Agreements - Answer- The big differences between property and liability
policies are found in their
Select one:
A. Insuring Agreements
B. Exclusions
C. Conditions
D. Definitions
C. Five - Answer- Every insurance policy includes how many main provisions?
Select one:
A. Three
B. Four
C. Five
D. Six
C. Tony will generally need to spend less time insuring a family's activities than a
business' services and liabilities. - Answer- Tony is a producer working with several
different insurers. Which one of the following most accurately describes Tony's
activities for reaching and serving customers?
Select one:
A. A loss run will be most helpful to Tony in helping his personal customers with their
risk management concerns.
B. Tony's job of selling is usually confined to the one type of insurance coverage the
customer initially requests from him.
C. Tony will generally need to spend less time insuring a family's activities than a
business' services and liabilities.
D. Policy issuance is a more important function of Tony's work than making sales or
claims handling.
B. Sandy reports her serious claim to Monica, who takes some preliminary
information, and in turn asks Eduardo to handle the claim from that point through the
completion of the claim. - Answer- Which one of the following best explains the
optimal relationship of insurance customer Sandy, producer Monica, and claims
representative Eduardo?
Select one:
A. Sandy reports her serious claim to Eduardo, who immediately transfers the call to
Monica, who handles the claim from start to finish.
Questions and Answers
A. The insurer is able to charge a premium that the insured can afford to pay. -
Answer- Adhering to the characteristics of an ideally insurable loss exposure in
selling insurance help assure that
Select one:
A. The insurer is able to charge a premium that the insured can afford to pay.
B. The losses associated with it typically involve small amounts.
C. The insurer is able to predict the amount and timing of each future loss.
D. The insurer can charge a high premium for the coverage.
B. An unknown vandal spray-paints graffiti on the insured's garage. - Answer- Claims
supervisor Charlotte is reviewing the incoming claims for the day to decide which
ones to assign to various claims reps. Of those claims, which one of the following
descriptions will Charlotte find is an example of a fortuitous loss?
Select one:
A. An insured demolishes a deck that has been allowed to rot.
B. An unknown vandal spray-paints graffiti on the insured's garage.
C. Insureds intentionally set a fire and burn their house down.
D. The value of an insured's home decreases due to a lack of maintenance.
C. Conditional contract. - Answer- An insurer will make a loss payment if an insured
loss occurs and if the insured performs certain duties. This illustrates that an
insurance policy is a
Select one:
A. Personal contract.
B. Contract of adhesion.
C. Conditional contract.
D. Contract of indemnity.
D. A contract of utmost good faith. - Answer- 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
Select one:
A. A conditional contract.
B. A contract of adhesion.
C. A contract of indemnity.
D. A contract of utmost good faith.
D. Workers compensation - Answer- Which one of the following types of insurance
policies would be most likely to incorporate state-specific statutory terms?
Select one:
A. Homeowners
, B. Professional liability
C. Auto
D. Workers compensation
A. Draft a manuscript form to meet the customer's needs. - Answer- When preprinted
forms do not provide the terms of coverage needed by a particular insured or small
group of insureds, the insurer may
Select one:
A. Draft a manuscript form to meet the customer's needs.
B. Incorporate statutes into a policy.
C. Ask the customer to resubmit an application.
D. Work with an advisory organization to develop a form.
A. Insuring Agreements - Answer- The big differences between property and liability
policies are found in their
Select one:
A. Insuring Agreements
B. Exclusions
C. Conditions
D. Definitions
C. Five - Answer- Every insurance policy includes how many main provisions?
Select one:
A. Three
B. Four
C. Five
D. Six
C. Tony will generally need to spend less time insuring a family's activities than a
business' services and liabilities. - Answer- Tony is a producer working with several
different insurers. Which one of the following most accurately describes Tony's
activities for reaching and serving customers?
Select one:
A. A loss run will be most helpful to Tony in helping his personal customers with their
risk management concerns.
B. Tony's job of selling is usually confined to the one type of insurance coverage the
customer initially requests from him.
C. Tony will generally need to spend less time insuring a family's activities than a
business' services and liabilities.
D. Policy issuance is a more important function of Tony's work than making sales or
claims handling.
B. Sandy reports her serious claim to Monica, who takes some preliminary
information, and in turn asks Eduardo to handle the claim from that point through the
completion of the claim. - Answer- Which one of the following best explains the
optimal relationship of insurance customer Sandy, producer Monica, and claims
representative Eduardo?
Select one:
A. Sandy reports her serious claim to Eduardo, who immediately transfers the call to
Monica, who handles the claim from start to finish.
