AINS 101 simulated exam questions and answers verified 100% correct 202
| Solved
1. Exclusive agency The ditterence between an independent agency and an exclusive agency is that an
is contracted to
sell insurance for
one insurer or
group of insurers
2. Insurance short- Destructive competition in the insurance industry could result in
ages
3. Veronica direct- Maria is a new producer who wears many hats when forming relationships and
ly contacts Maria then serving her established customers. In this capacity, which one of the following
for guidance on scenarios most accurately describes her ongoing work wearing the hat of "claims
how to report handler"?
a stolen car,
Maria provides
that, and claims
rep Sean takes
over after an in-
troduction from
Maria
4. $350 Replace- John's two-year-old bicycle was stolen. The bicycle's purchase price was $700, its
ment cost - De- current replacement cost is $800, and depreciation was estimated at $450. What
preciation was the bicycle's actual cash value?
5. Underwriting au- All of the following are sources of underwriting information to evaluate an insur-
thority reports ance submission, EXCEPT:
6. Implemented Which one of the following best explains why producers should be alert to changes
risk in clients' loss exposures?
management
techniques may
1/9
, AINS 101 simulated exam questions and answers verified 100% correct 202
| Solved
prove to be
ineffective or
become obsolete
7. Field Underwriter James works very closely with producers on a daily basis. In addition to evaluating
the applicants that the producers submit, James is involved in presenting policy
quotations, processing policy endorsements, helping to explain coverages, and
making coverage recommendations. James works as a
8. Balance sheet Rachel is considering investing in the stock of an insurance company. Which one
of the following is likely to provide the best indication of the insurer's financial
position at this point in time?
9. Support produc- At Greenfield Insurance Company, Bernadette and Rachel are corporate underwrit-
ers and insureds ers, and Tomas and Jose are field underwriters. All of the following are underwriting
activities typically performed by corporate (or statt) underwriters like Bernadette
and Rachel, EXCEPT:
10. Large number of Oscar's custom-built vehicle looks like a sausage sandwich on wheels. He plans
similar exposure to drive it to special events at schools around the country where it will serve
units as a mobile billboard to promote his product. Oscar is surprised to learn that
insurers are reluctant to insure his vehicle because it fails to meet one of the ideal
characteristics of an insurable risk. Which characteristic is Oscar's vehicle least likely
to meet?
11. Capacity Which one of the following is the amount of business an insurer can write based
on regulatory guidelines, usually a comparsion of the insurer's written premiums
to the policyholders' surplus?
12. Mutual insurer Joe is the owner of JG Auto Repair. He is always frustrated with the amount of
commercial insurance premium he pays every year, even though he has not had a
single claim in over 10 years. Joe is looking to partner with an insurance company
2/9
| Solved
1. Exclusive agency The ditterence between an independent agency and an exclusive agency is that an
is contracted to
sell insurance for
one insurer or
group of insurers
2. Insurance short- Destructive competition in the insurance industry could result in
ages
3. Veronica direct- Maria is a new producer who wears many hats when forming relationships and
ly contacts Maria then serving her established customers. In this capacity, which one of the following
for guidance on scenarios most accurately describes her ongoing work wearing the hat of "claims
how to report handler"?
a stolen car,
Maria provides
that, and claims
rep Sean takes
over after an in-
troduction from
Maria
4. $350 Replace- John's two-year-old bicycle was stolen. The bicycle's purchase price was $700, its
ment cost - De- current replacement cost is $800, and depreciation was estimated at $450. What
preciation was the bicycle's actual cash value?
5. Underwriting au- All of the following are sources of underwriting information to evaluate an insur-
thority reports ance submission, EXCEPT:
6. Implemented Which one of the following best explains why producers should be alert to changes
risk in clients' loss exposures?
management
techniques may
1/9
, AINS 101 simulated exam questions and answers verified 100% correct 202
| Solved
prove to be
ineffective or
become obsolete
7. Field Underwriter James works very closely with producers on a daily basis. In addition to evaluating
the applicants that the producers submit, James is involved in presenting policy
quotations, processing policy endorsements, helping to explain coverages, and
making coverage recommendations. James works as a
8. Balance sheet Rachel is considering investing in the stock of an insurance company. Which one
of the following is likely to provide the best indication of the insurer's financial
position at this point in time?
9. Support produc- At Greenfield Insurance Company, Bernadette and Rachel are corporate underwrit-
ers and insureds ers, and Tomas and Jose are field underwriters. All of the following are underwriting
activities typically performed by corporate (or statt) underwriters like Bernadette
and Rachel, EXCEPT:
10. Large number of Oscar's custom-built vehicle looks like a sausage sandwich on wheels. He plans
similar exposure to drive it to special events at schools around the country where it will serve
units as a mobile billboard to promote his product. Oscar is surprised to learn that
insurers are reluctant to insure his vehicle because it fails to meet one of the ideal
characteristics of an insurable risk. Which characteristic is Oscar's vehicle least likely
to meet?
11. Capacity Which one of the following is the amount of business an insurer can write based
on regulatory guidelines, usually a comparsion of the insurer's written premiums
to the policyholders' surplus?
12. Mutual insurer Joe is the owner of JG Auto Repair. He is always frustrated with the amount of
commercial insurance premium he pays every year, even though he has not had a
single claim in over 10 years. Joe is looking to partner with an insurance company
2/9
