AINS 101 (EXAM 1) INCREASING YOUR INSURANCE IQ |
COMPLETE QUESTIONS WITH 100% RATED EXPERT SOLUTIONS
|2026 LATEST UPDATED
Key Components of Insurance - (answer)1. Risk
2. Transfers
3. Pooling
Risk - (answer)Uncertainty about outcomes, that can be negative OR positive
Transfers - (answer)Risk of loss in the form of a policy that is given to another party
Pooling - (answer)Insurers combined all of premiums collected from customers into a fund that
is used to pay losses as they occur
Benefits of Insurance - (answer)1. Pay for Losses
2. Manage Cash Flow Uncertainty
3. Comply with Legal Requirements
4. Promote Risk Control Activity
,Pay for Losses - (answer)Indemnifies, restores to pre-loss status, individuals and organizations
for covered losses
Manage Cashflow Uncertainty - (answer)As long as loss is covered by insurance, financial effect
on insured's cash flow will be reduced to deductible payments or less amounts that exceed the
policy limits
Comply with Legal Requirements - (answer)Ex: Workers compensation and personal auto
insurance meet state legal requirements
Promote Risk Control Acitivity - (answer)Policies may require or provide incentives to insureds
who undertake risk control activities. And collected data can be used to prevent or limit losses
Insured - (answer)Person/organization covered by an insurance policy
Property Insurance - (answer)Protects an insured's assets by covering the cost of repairing or
replacing property that is damaged, lost, or destroyed
, Liability Insurance - (answer)Provides payments for injury to others or damage to others
property for which the insured is legally responsible
Life Insurance - (answer)Replaces income earning potential lost through death
Health Insurance - (answer)Protects individuals and families from financial losses caused by
sickness and accidents
Personal Property - Casualty Insurance - (answer)1. Homeowners
2. Personal Auto
3. Personal Umbrella
Homeowners Insurance - (answer)Provides protection when people's homes and/or belongings
are damaged or stole and liability coverage situations such as family dog biting a guest
Personal Auto Insurance - (answer)If insured is at fault in an accident, provides coverage for
bodily injury to another person or damage to another person's auto
COMPLETE QUESTIONS WITH 100% RATED EXPERT SOLUTIONS
|2026 LATEST UPDATED
Key Components of Insurance - (answer)1. Risk
2. Transfers
3. Pooling
Risk - (answer)Uncertainty about outcomes, that can be negative OR positive
Transfers - (answer)Risk of loss in the form of a policy that is given to another party
Pooling - (answer)Insurers combined all of premiums collected from customers into a fund that
is used to pay losses as they occur
Benefits of Insurance - (answer)1. Pay for Losses
2. Manage Cash Flow Uncertainty
3. Comply with Legal Requirements
4. Promote Risk Control Activity
,Pay for Losses - (answer)Indemnifies, restores to pre-loss status, individuals and organizations
for covered losses
Manage Cashflow Uncertainty - (answer)As long as loss is covered by insurance, financial effect
on insured's cash flow will be reduced to deductible payments or less amounts that exceed the
policy limits
Comply with Legal Requirements - (answer)Ex: Workers compensation and personal auto
insurance meet state legal requirements
Promote Risk Control Acitivity - (answer)Policies may require or provide incentives to insureds
who undertake risk control activities. And collected data can be used to prevent or limit losses
Insured - (answer)Person/organization covered by an insurance policy
Property Insurance - (answer)Protects an insured's assets by covering the cost of repairing or
replacing property that is damaged, lost, or destroyed
, Liability Insurance - (answer)Provides payments for injury to others or damage to others
property for which the insured is legally responsible
Life Insurance - (answer)Replaces income earning potential lost through death
Health Insurance - (answer)Protects individuals and families from financial losses caused by
sickness and accidents
Personal Property - Casualty Insurance - (answer)1. Homeowners
2. Personal Auto
3. Personal Umbrella
Homeowners Insurance - (answer)Provides protection when people's homes and/or belongings
are damaged or stole and liability coverage situations such as family dog biting a guest
Personal Auto Insurance - (answer)If insured is at fault in an accident, provides coverage for
bodily injury to another person or damage to another person's auto
