AINS Practice Exam Review Questions And Answers 100% Verified 2026
1. One distinguishing feature be- agency expiration list
tween independent agency sys-
tems and other marketing sys-
tems is the...
2. Foreign Insurer An insurer licensed to operate in a state but incorporated in
another state
3. Domestic Insurer An insurer doing business in the jurisdiction in which it was
incorporated
4. Alien Insurer An insurer domiciled in a country other than the US
5. Direct Response Marketing Sys- Greatly reduces compensation costs but has higher adver-
tem tising costs
6. Agency Expiration List An agency's most valuable asset (does not belong to insurer)
7. Important consideration when Does the channel capitalize on its core capabilities?
selecting distribution channels
8. Knowledge acquired by the knowledge acquired by the insurer
agent is presumed to be..
9. Premium collection method Direct Bill
used for personal insurance and
small commercial accounts
10. What specifies scope of authori- Agency contract
ty of an agent?
11. Agency Bill Payment procedure in which a producer sends premium
bills to the insured, collects the premium, and sends the
premium to the insurer, less any commission
, AINS Practice Exam Review Questions And Answers 100% Verified 2026
12. Item Basis Premium (less commission) is forwarded to the insurer
when the producer collects it or when it comes due. Least
complex method
13. Statement Basis Insurer sends statement to the producer showing the pre-
miums due. Producer is obligated to pay the premiums as
due.
14. Account Current Basis Producer periodically prepares a statement showing the
premiums due to the insurer, after deducting appropriate
commissions, and transmits the amount to the insurer. The
agency contract will indicate how often the producer must
submit the account current statement (usually monthly).
Producer must pay when premium is due, even if policy-
holder hasn't paid.
15. Purposes of underwriting Develop and maintain a book of business, guard against
adverse selection, ensure adequate policyholder's surplus
and enforce underwriting guidelines
16. Experience Rating A rating plan that adjusts the premium for the current policy
period to recognize the loss experience of the insured orga-
nization during past policy periods
17. Schedule Rating A rating plan that awards debits and credits based specific
categories, such as the care and condition of premises of
the training and selection of employees, to reflect a modified
premium that the class rate does not include
18. Retrospective Rating A ratemaking technique that adjusts the insured's premium
for the current policy period based on the insured's loss ex-
1. One distinguishing feature be- agency expiration list
tween independent agency sys-
tems and other marketing sys-
tems is the...
2. Foreign Insurer An insurer licensed to operate in a state but incorporated in
another state
3. Domestic Insurer An insurer doing business in the jurisdiction in which it was
incorporated
4. Alien Insurer An insurer domiciled in a country other than the US
5. Direct Response Marketing Sys- Greatly reduces compensation costs but has higher adver-
tem tising costs
6. Agency Expiration List An agency's most valuable asset (does not belong to insurer)
7. Important consideration when Does the channel capitalize on its core capabilities?
selecting distribution channels
8. Knowledge acquired by the knowledge acquired by the insurer
agent is presumed to be..
9. Premium collection method Direct Bill
used for personal insurance and
small commercial accounts
10. What specifies scope of authori- Agency contract
ty of an agent?
11. Agency Bill Payment procedure in which a producer sends premium
bills to the insured, collects the premium, and sends the
premium to the insurer, less any commission
, AINS Practice Exam Review Questions And Answers 100% Verified 2026
12. Item Basis Premium (less commission) is forwarded to the insurer
when the producer collects it or when it comes due. Least
complex method
13. Statement Basis Insurer sends statement to the producer showing the pre-
miums due. Producer is obligated to pay the premiums as
due.
14. Account Current Basis Producer periodically prepares a statement showing the
premiums due to the insurer, after deducting appropriate
commissions, and transmits the amount to the insurer. The
agency contract will indicate how often the producer must
submit the account current statement (usually monthly).
Producer must pay when premium is due, even if policy-
holder hasn't paid.
15. Purposes of underwriting Develop and maintain a book of business, guard against
adverse selection, ensure adequate policyholder's surplus
and enforce underwriting guidelines
16. Experience Rating A rating plan that adjusts the premium for the current policy
period to recognize the loss experience of the insured orga-
nization during past policy periods
17. Schedule Rating A rating plan that awards debits and credits based specific
categories, such as the care and condition of premises of
the training and selection of employees, to reflect a modified
premium that the class rate does not include
18. Retrospective Rating A ratemaking technique that adjusts the insured's premium
for the current policy period based on the insured's loss ex-
