AINS 101 Comprehensive Exam Questions and
Answers – Rated 100% Correct
1. The two main sectors of the insurance industry are: Property
-casualtyinsuranceand life-
health insurance.
2. Because insurance contracts impose an obligation for ethical practices and
behaviors on the parties while dealing with one another, an insurance contract is called
a: Contract of utmost good faith.
3. Earned premiums are shown on an insurer's income statement because they are:
Revenues
4. Destructivecompetitionin the insuranceindustry could result in: Insurance
Shortages
5. Sean was driving and caused an injury to a pedestrian named Wilbur. In the
context of the resulting claim made to Sean's insurance company and assigned to
Andrea in the claims department, Sean and Wilbur and Andrea are, respectively:
Insured and claimant and claims representative
6. Which one of these is most directly associated with a satisfied customer?: -
Leads and referrals that can be used to generatenew business
7. When conducting an advance audit, which of these tasks are performed to assist
underwriting?: Classify the various exposures
8. Because the insurance company usually determines policy wording and the insured
has little choice but to "take it or leave it," an insurance contract is
a: Contractof adhesion
9. Smart products used to perform repetitive tasks: Robots
10. What is the correct order for these steps in the claims process? Calculatingloss a
reserve,preparing a loss statement,identifying the policy, determiningthe cause of loss:
Identifying the policy, calculating a loss reserve,determiningthe cause of loss, preparinga loss statement
11. Whatis anothernamefor a field underwriter?:Line Underwriter
12. Someone has the following duties: evaluate applicants that producers sub-mit,
1/
10
, present policy quotations, process policy endorsements, help explain cov -erages, make
coveragerecommendations.What is their role?: Field/Line Underwriter
13. In personal property -casualty insurance, which is more common: manu-script
forms or pre-printed policies?: Pre
-printed policies
2/
10
Answers – Rated 100% Correct
1. The two main sectors of the insurance industry are: Property
-casualtyinsuranceand life-
health insurance.
2. Because insurance contracts impose an obligation for ethical practices and
behaviors on the parties while dealing with one another, an insurance contract is called
a: Contract of utmost good faith.
3. Earned premiums are shown on an insurer's income statement because they are:
Revenues
4. Destructivecompetitionin the insuranceindustry could result in: Insurance
Shortages
5. Sean was driving and caused an injury to a pedestrian named Wilbur. In the
context of the resulting claim made to Sean's insurance company and assigned to
Andrea in the claims department, Sean and Wilbur and Andrea are, respectively:
Insured and claimant and claims representative
6. Which one of these is most directly associated with a satisfied customer?: -
Leads and referrals that can be used to generatenew business
7. When conducting an advance audit, which of these tasks are performed to assist
underwriting?: Classify the various exposures
8. Because the insurance company usually determines policy wording and the insured
has little choice but to "take it or leave it," an insurance contract is
a: Contractof adhesion
9. Smart products used to perform repetitive tasks: Robots
10. What is the correct order for these steps in the claims process? Calculatingloss a
reserve,preparing a loss statement,identifying the policy, determiningthe cause of loss:
Identifying the policy, calculating a loss reserve,determiningthe cause of loss, preparinga loss statement
11. Whatis anothernamefor a field underwriter?:Line Underwriter
12. Someone has the following duties: evaluate applicants that producers sub-mit,
1/
10
, present policy quotations, process policy endorsements, help explain cov -erages, make
coveragerecommendations.What is their role?: Field/Line Underwriter
13. In personal property -casualty insurance, which is more common: manu-script
forms or pre-printed policies?: Pre
-printed policies
2/
10
