AINS 21 SA A3 Exam UPDATEDACTUAL
QUESTIONS AND CORRECT ANSWERS
All of the following appear on an insurer's balance sheet, EXCEPT:
Select one:
A. Policyholders' surplus
B. Assets
C. Liabilities
D. Net income - CORRECT ANSWER D. Net income
All of the following are shown on an insurer's income statement, EXCEPT:
Select one:
A. Net income
B. Net investment income
C. Net underwriting gain (loss)
D. Unearned premium reserve - CORRECT ANSWER D. Unearned premium reserve
The unearned premium reserve is shown on an insurer's balance sheet. Net underwriting gain
(loss), net investment income, and net income are shown on an insurer's income statement.
Which one of the following types of financial statements shows the financial position of an
insurance company at any particular point in time?
Select one:
A. Sales report
B. Income statement
C. Cash flow report
D. Balance sheet - CORRECT ANSWER D. Balance sheet
Earned premiums are shown on an insurer's income statement because they are
Select one:
, A. Expenses.
B. Revenues.
C. Equal to net income.
D. Admitted assets. - CORRECT ANSWER B. Revenues.
An insurer's balance sheet can best be described as a
Select one:
A. Relationship between revenue and liabilities.
B. Relationship between assets and expenses.
C. Summary of premiums written.
D. Snapshot of its financial position. - CORRECT ANSWER D. Snapshot of its
financial position.
Although all premiums provide a source of cash for insurers, rules of accounting allow
insurers to recognize only which type of premiums?
a. Total premiums
b. Written premiums
c. Unearned premiums
d. Earned premiums - CORRECT ANSWER d. Earned premiums
The largest expense category for most insurers is payment for
Select one:
A. Acquisition expenses.
B. Losses arising from claims.
C. Additions to loss reserves.
D. Loss adjustment expenses. - CORRECT ANSWER B. Losses arising from claims.
Which one of the following is part of written premiums?
Select one:
QUESTIONS AND CORRECT ANSWERS
All of the following appear on an insurer's balance sheet, EXCEPT:
Select one:
A. Policyholders' surplus
B. Assets
C. Liabilities
D. Net income - CORRECT ANSWER D. Net income
All of the following are shown on an insurer's income statement, EXCEPT:
Select one:
A. Net income
B. Net investment income
C. Net underwriting gain (loss)
D. Unearned premium reserve - CORRECT ANSWER D. Unearned premium reserve
The unearned premium reserve is shown on an insurer's balance sheet. Net underwriting gain
(loss), net investment income, and net income are shown on an insurer's income statement.
Which one of the following types of financial statements shows the financial position of an
insurance company at any particular point in time?
Select one:
A. Sales report
B. Income statement
C. Cash flow report
D. Balance sheet - CORRECT ANSWER D. Balance sheet
Earned premiums are shown on an insurer's income statement because they are
Select one:
, A. Expenses.
B. Revenues.
C. Equal to net income.
D. Admitted assets. - CORRECT ANSWER B. Revenues.
An insurer's balance sheet can best be described as a
Select one:
A. Relationship between revenue and liabilities.
B. Relationship between assets and expenses.
C. Summary of premiums written.
D. Snapshot of its financial position. - CORRECT ANSWER D. Snapshot of its
financial position.
Although all premiums provide a source of cash for insurers, rules of accounting allow
insurers to recognize only which type of premiums?
a. Total premiums
b. Written premiums
c. Unearned premiums
d. Earned premiums - CORRECT ANSWER d. Earned premiums
The largest expense category for most insurers is payment for
Select one:
A. Acquisition expenses.
B. Losses arising from claims.
C. Additions to loss reserves.
D. Loss adjustment expenses. - CORRECT ANSWER B. Losses arising from claims.
Which one of the following is part of written premiums?
Select one:
