AINS 21 practice exam Questions With Complete Solutions
a bank recently began selling insurance and advertise a
discounted auto loan rate to any new or used car buyer who is
also purchases auto insurance auto insurance through the bank.
this discount is an example of Correct Answers rebating
a broad statement of an insurer's promises to the insured ma be
found in a policy's Correct Answers insuring agreements
A broad statement of an insurer's promises to the insured may be
found in a policy's Correct Answers insuring agreements
a business buys multiple small warehouses to minimize the
effects of a single loss. this is an example of Correct Answers
seperation
A commercial building may contain furniture, machinery and
equipment, raw materials, and finish products. Which one of the
following is the term generally used in property insurance
policies to refer to all these types of property? Correct Answers
Business personal property
A commercial package policy is an example of Correct Answers
modular policy
A commercial property policy providing coverage on the named
insured's personal property can also provided limited coverage
for which one of the following Correct Answers Personal
property of others in the care, custody, or control of the insured
,A company interested in improving cash flow should consider
meeting its insurance needs through which one of the following
types of insurance organizations Correct Answers Captive
insurers
A completed operations liability loss exposure differs from a
products liability loss exposure in that the completed operations
liability loss exposure Correct Answers Arises out of the
entity's completed work, including defective parts or materials
furnished with the work
A completed operations liability loss exposure differs from
products liability loss exposure in that the completed operations
liability loss exposure Correct Answers arises out of the entity's
completed work, including defective parts or materials furnished
with the work
A decrease in incurred losses will generally cause a decrease in
all of the following except Correct Answers expense ratio
A decrease in incurred losses will generally cause a decrease in
all of the following except Correct Answers expense ratio
A flex rating law is Correct Answers an insurance rating law
under which prior approval is required only if the new rates
exceed a certain percentage above and sometimes below the
rates previously file
A flex rating law is Correct Answers an insurance rating law
under which prior approval is required only if the new rates
,exceed a certain percentage above and sometimes below the
rates previously filed
A homeowners insurance policy typically includes Correct
Answers
A homeowners insurance policy typically includes Correct
Answers both property and liability coverage
A liability loss has the following damages:
Medical expenses: 10,000
Damages for disfigurement 50,000
damages for pain and suffering 100,000
What is the amount of special damages? Correct Answers
10,000
a licensed electrician completes the job of rewiring a house and
returns to his shop. With regard to this job, The eletricial has a
Correct Answers Completed operations loss exposure
A loss exposure is Correct Answers Any condition that presents
the possibility of a loss
A mutual insurance company is owned by Correct Answers
policyholders
a producer will generally review a company's loss run report
while performing which one of the following functions Correct
Answers risk management review
, A promise made by a seller that a product is fit for specific
purpose is called a Correct Answers Warranty
A reciprocal insurance exchange Correct Answers is an
unincorporated association providing insurance coverage to its
subscribers
a reinsurance company Correct Answers assumes loss
exposures from a primary insurer
A reservation of rights letter Correct Answers Advises the
insured that the insurer is investigating the claim but retains the
right to deny coverage later
A small business owner concerned about something happening
and not being able to work or earn a living for extended period
of time due to an accident should purchase Correct Answers
Disability insurance
A stock insurer is distinguished from a mutual insurer by the
fact that Correct Answers owners are not necessarily insured
A stock insurer is distinguished from a mutual insurer by the
fact that Correct Answers owners are not necessarily insureds
A stock insurer is distinguished from a mutual insurer by the
fact that Correct Answers owners are not necessarily insureds
ABC company manufactures hot beverage containers and
distributes them to various retail outlets. A customer who
purchases one of these containers at a retail store is burned by ho
a bank recently began selling insurance and advertise a
discounted auto loan rate to any new or used car buyer who is
also purchases auto insurance auto insurance through the bank.
this discount is an example of Correct Answers rebating
a broad statement of an insurer's promises to the insured ma be
found in a policy's Correct Answers insuring agreements
A broad statement of an insurer's promises to the insured may be
found in a policy's Correct Answers insuring agreements
a business buys multiple small warehouses to minimize the
effects of a single loss. this is an example of Correct Answers
seperation
A commercial building may contain furniture, machinery and
equipment, raw materials, and finish products. Which one of the
following is the term generally used in property insurance
policies to refer to all these types of property? Correct Answers
Business personal property
A commercial package policy is an example of Correct Answers
modular policy
A commercial property policy providing coverage on the named
insured's personal property can also provided limited coverage
for which one of the following Correct Answers Personal
property of others in the care, custody, or control of the insured
,A company interested in improving cash flow should consider
meeting its insurance needs through which one of the following
types of insurance organizations Correct Answers Captive
insurers
A completed operations liability loss exposure differs from a
products liability loss exposure in that the completed operations
liability loss exposure Correct Answers Arises out of the
entity's completed work, including defective parts or materials
furnished with the work
A completed operations liability loss exposure differs from
products liability loss exposure in that the completed operations
liability loss exposure Correct Answers arises out of the entity's
completed work, including defective parts or materials furnished
with the work
A decrease in incurred losses will generally cause a decrease in
all of the following except Correct Answers expense ratio
A decrease in incurred losses will generally cause a decrease in
all of the following except Correct Answers expense ratio
A flex rating law is Correct Answers an insurance rating law
under which prior approval is required only if the new rates
exceed a certain percentage above and sometimes below the
rates previously file
A flex rating law is Correct Answers an insurance rating law
under which prior approval is required only if the new rates
,exceed a certain percentage above and sometimes below the
rates previously filed
A homeowners insurance policy typically includes Correct
Answers
A homeowners insurance policy typically includes Correct
Answers both property and liability coverage
A liability loss has the following damages:
Medical expenses: 10,000
Damages for disfigurement 50,000
damages for pain and suffering 100,000
What is the amount of special damages? Correct Answers
10,000
a licensed electrician completes the job of rewiring a house and
returns to his shop. With regard to this job, The eletricial has a
Correct Answers Completed operations loss exposure
A loss exposure is Correct Answers Any condition that presents
the possibility of a loss
A mutual insurance company is owned by Correct Answers
policyholders
a producer will generally review a company's loss run report
while performing which one of the following functions Correct
Answers risk management review
, A promise made by a seller that a product is fit for specific
purpose is called a Correct Answers Warranty
A reciprocal insurance exchange Correct Answers is an
unincorporated association providing insurance coverage to its
subscribers
a reinsurance company Correct Answers assumes loss
exposures from a primary insurer
A reservation of rights letter Correct Answers Advises the
insured that the insurer is investigating the claim but retains the
right to deny coverage later
A small business owner concerned about something happening
and not being able to work or earn a living for extended period
of time due to an accident should purchase Correct Answers
Disability insurance
A stock insurer is distinguished from a mutual insurer by the
fact that Correct Answers owners are not necessarily insured
A stock insurer is distinguished from a mutual insurer by the
fact that Correct Answers owners are not necessarily insureds
A stock insurer is distinguished from a mutual insurer by the
fact that Correct Answers owners are not necessarily insureds
ABC company manufactures hot beverage containers and
distributes them to various retail outlets. A customer who
purchases one of these containers at a retail store is burned by ho
