AINS 102 FINAL EXAM STUDY GUIDE
2026/2027 ACCURATE QUESTIONS
WITH CORRECT DETAILED ANSWERS
|| 100% GUARANTEED PASS
<NEWEST VERSION>
1. Arbitration - ANSWER ✔ An alternative dispute resolution (ADR) method
by which disputing parties use a neutral outside party to examine the issues
and develop a settlement, which can be final and binding.
2. Attachment - ANSWER ✔ The act of seizing property to secure a judgment.
3. Catastrophe - ANSWER ✔ A single event that causes widespread losses.
4. Civil law - ANSWER ✔ A classification of law that applies to legal matters
not governed by criminal law and that protects rights and provides remedies
for breaches of duties owed to others.
5. Compensatory damages - ANSWER ✔ A payment awarded by a court to
reimburse a victim for actual harm.
6. Compulsory auto insurance law - ANSWER ✔ Law that requires the owners
or operators of automobiles to carry automobile liability insurance at least
, equal to certain minimum limits before the vehicle can be licensed or
registered.
7. Criminal law - ANSWER ✔ The branch of the law that imposes penalties
for wrongs against society.
8. Cross-selling - ANSWER ✔ Selling new types of insurance products to
existing clients.
9. Real property (realty) - ANSWER ✔ Tangible property consisting of land,
all structures permanently attached to the land, and whatever is growing on
the land.
10.Reinsurance - ANSWER ✔ The transfer of insurance risk from one insurer
to another through a contractual agreement under which one insurer (the
reinsurer) agrees, in return for a reinsurance premium, to indemnify another
insurer (the primary insurer) for some or all of the financial consequences of
certain loss exposures covered by the primary's insurance policies.
11.Residual market - ANSWER ✔ The term referring collectively to insurers
and other organizations that make insurance available through a shared risk
mechanism to those who cannot obtain coverage in the admitted market.
12.Risk control - ANSWER ✔ A conscious act or decision not to act that
reduces the frequency and/or severity of losses or makes losses more
predictable.
13.John is a recent homeowner and is considering the insurance coverages he
needs for his home and contents. If damaged by a peril covered by a
, homeowners policy, which one of the following would be considered part of
John's real property?
Select one:
A. The boat in the driveway
B. The detached garage
C. The desk top computer
D. The hockey net and equipment - ANSWER ✔ B. The detached garage
14.Which one of the following is considered real property?
Select one:
A. An automobile
B. A house
C. Furniture
D. A motorhome - ANSWER ✔ B. A house
15.Most beachfront and windstorm plans provide coverage for which one of the
following exposures in addition to windstorm?
Select one:
A. Erosion
B. Fire
C. Flood
D. Hail - ANSWER ✔ D. Hail
16.Which one of the following is a primary basis for a property to be eligible
for coverage under beachfront and windstorm plans?
Select one:
A. The property must be certified by FEMA, eligible for flood insurance
and located in a designated coastal area.
B. The property must be ineligible for coverage in the voluntary market
and must be located within at least 10 miles of a flood plain.
C. The property must be ineligible for coverage in the voluntary market
and must be located in designated coastal areas.
D. The property must be located in a designated coastal area which has
not experienced any flooding within the past 100 years. - ANSWER
, ✔ C. The property must be ineligible for coverage in the voluntary
market and must be located in designated coastal areas.
17.Alice works in the personal lines market for Hill Top Insurance (HTI). Her
main responsibility is to develop a profitable book of business and help the
insurer fulfill its promises to policyholders. Alice must determine which
applicants to accept, whether the coverage is appropriate, and how much to
charge in premium. Which one of the following positions does Alice hold at
HTI?
Select one:
A. Auditor
B. Risk control representative
C. Underwriter
D. Producer - ANSWER ✔ C. Underwriter
18.Increasingly, insurers are able to assess drivers' skill and ability through
Select one:
A. Occupation.
B. Restraints.
C. Telematics.
D. Area of operation. - ANSWER ✔ C. Telematics.
19.A customer service representative (CSR) receives a call from a customer
whose homeowners policy has been canceled as a result of her loss
frequency. She is angry because some of the losses were not covered, some
losses were below her deductible, and only one loss was of significant value.
Which one of the following is the best way for the CSR to respond to this
criticism while working to retain the customer?
Select one:
A. Place coverage with another insurer that is willing to accept the
customer's loss history at a higher premium
B. Refer the customer to an agency specializing in providing coverage to
customers with a high loss frequency
C. Encourage the customer to express her anger and listen empathetically
2026/2027 ACCURATE QUESTIONS
WITH CORRECT DETAILED ANSWERS
|| 100% GUARANTEED PASS
<NEWEST VERSION>
1. Arbitration - ANSWER ✔ An alternative dispute resolution (ADR) method
by which disputing parties use a neutral outside party to examine the issues
and develop a settlement, which can be final and binding.
2. Attachment - ANSWER ✔ The act of seizing property to secure a judgment.
3. Catastrophe - ANSWER ✔ A single event that causes widespread losses.
4. Civil law - ANSWER ✔ A classification of law that applies to legal matters
not governed by criminal law and that protects rights and provides remedies
for breaches of duties owed to others.
5. Compensatory damages - ANSWER ✔ A payment awarded by a court to
reimburse a victim for actual harm.
6. Compulsory auto insurance law - ANSWER ✔ Law that requires the owners
or operators of automobiles to carry automobile liability insurance at least
, equal to certain minimum limits before the vehicle can be licensed or
registered.
7. Criminal law - ANSWER ✔ The branch of the law that imposes penalties
for wrongs against society.
8. Cross-selling - ANSWER ✔ Selling new types of insurance products to
existing clients.
9. Real property (realty) - ANSWER ✔ Tangible property consisting of land,
all structures permanently attached to the land, and whatever is growing on
the land.
10.Reinsurance - ANSWER ✔ The transfer of insurance risk from one insurer
to another through a contractual agreement under which one insurer (the
reinsurer) agrees, in return for a reinsurance premium, to indemnify another
insurer (the primary insurer) for some or all of the financial consequences of
certain loss exposures covered by the primary's insurance policies.
11.Residual market - ANSWER ✔ The term referring collectively to insurers
and other organizations that make insurance available through a shared risk
mechanism to those who cannot obtain coverage in the admitted market.
12.Risk control - ANSWER ✔ A conscious act or decision not to act that
reduces the frequency and/or severity of losses or makes losses more
predictable.
13.John is a recent homeowner and is considering the insurance coverages he
needs for his home and contents. If damaged by a peril covered by a
, homeowners policy, which one of the following would be considered part of
John's real property?
Select one:
A. The boat in the driveway
B. The detached garage
C. The desk top computer
D. The hockey net and equipment - ANSWER ✔ B. The detached garage
14.Which one of the following is considered real property?
Select one:
A. An automobile
B. A house
C. Furniture
D. A motorhome - ANSWER ✔ B. A house
15.Most beachfront and windstorm plans provide coverage for which one of the
following exposures in addition to windstorm?
Select one:
A. Erosion
B. Fire
C. Flood
D. Hail - ANSWER ✔ D. Hail
16.Which one of the following is a primary basis for a property to be eligible
for coverage under beachfront and windstorm plans?
Select one:
A. The property must be certified by FEMA, eligible for flood insurance
and located in a designated coastal area.
B. The property must be ineligible for coverage in the voluntary market
and must be located within at least 10 miles of a flood plain.
C. The property must be ineligible for coverage in the voluntary market
and must be located in designated coastal areas.
D. The property must be located in a designated coastal area which has
not experienced any flooding within the past 100 years. - ANSWER
, ✔ C. The property must be ineligible for coverage in the voluntary
market and must be located in designated coastal areas.
17.Alice works in the personal lines market for Hill Top Insurance (HTI). Her
main responsibility is to develop a profitable book of business and help the
insurer fulfill its promises to policyholders. Alice must determine which
applicants to accept, whether the coverage is appropriate, and how much to
charge in premium. Which one of the following positions does Alice hold at
HTI?
Select one:
A. Auditor
B. Risk control representative
C. Underwriter
D. Producer - ANSWER ✔ C. Underwriter
18.Increasingly, insurers are able to assess drivers' skill and ability through
Select one:
A. Occupation.
B. Restraints.
C. Telematics.
D. Area of operation. - ANSWER ✔ C. Telematics.
19.A customer service representative (CSR) receives a call from a customer
whose homeowners policy has been canceled as a result of her loss
frequency. She is angry because some of the losses were not covered, some
losses were below her deductible, and only one loss was of significant value.
Which one of the following is the best way for the CSR to respond to this
criticism while working to retain the customer?
Select one:
A. Place coverage with another insurer that is willing to accept the
customer's loss history at a higher premium
B. Refer the customer to an agency specializing in providing coverage to
customers with a high loss frequency
C. Encourage the customer to express her anger and listen empathetically
