(AIN3701 assgnment) Advanced Insurance Practice Practice EXAM LATEST QUESTIONS AND 100% Verified ANSWERS

(AIN3701 assgnment) Advanced Insurance Practice
Practice EXAM LATEST 2026-2027 100 QUESTIONS AND
100% Verified ANSWERS
1. What is the primary purpose of insurance?



A. To guarantee profit

B. To transfer risk

C. To eliminate risk

D. To increase risk

Answer: B



2. Which principle prevents an insured from profiting from a loss?



A. Contribution

B. Subrogation

C. Indemnity

D. Insurable Interest

Answer: C



3. Insurable interest must exist:



A. At the time of loss only

B. At policy inception only

C. At both policy inception and loss (generally for property insurance)

D. Never

Answer: C



4. The principle of utmost good faith is known as:

,A. Proximate cause

B. Uberrimae fidei

C. Indemnity

D. Estoppel

Answer: B



5. Which party transfers risk to an insurer?



A. Reinsurer

B. Insured

C. Broker

D. Adjuster

Answer: B



6. A deductible is:



A. The premium paid

B. The amount the insurer always pays

C. The portion of loss borne by the insured

D. A type of policy

Answer: C



7. Which insurance principle identifies the dominant cause of a loss?



A. Contribution

B. Subrogation

C. Proximate Cause

D. Warranty

, Answer: C



8. Premiums are primarily determined by:



A. Risk exposure

B. Weather only

C. Government policy only

D. Age only

Answer: A



9. Reinsurance is insurance purchased by:



A. Customers

B. Governments

C. Insurers

D. Brokers

Answer: C



10. Which document outlines the terms of coverage?



A. Receipt

B. Policy Contract

C. Invoice

D. Prospectus

Answer: B



11. A peril is:



A. A cause of loss