AINS 101 ACTUAL EXAM | COMPLETE QUESTIONS WITH 100% RATED EXPERT
SOLUTIONS |2026 LATEST UPDATED
1. D. Promote Risk control Activity: Pravalt Construction Company pays less than its competitors for workers
compensation insurance because Pravalt has had substantially fewer employee injuries than other firms in its class.
This illustrates which one of the following benefits of insurance?
Available answer options
Select only one option
AMeet legal requirements
BReduce social burden
CEnable efficient use of resources
D Promote risk control activity
2. B
$350: John's two-year-old bicycle was stolen. The bicycle's purchase price was $700, its current replacement cost is
$800, and depreciation was estimated at $450. What was the bicycle's actual cash value? Available answer options
Select only one option
A
$225
B
$350
C
$450
D
$800
3. C
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 Available
answer options
Select only one option
A
Risk Control Representative.
B
Staff Underwriter.
C
Field Underwriter.
D
Service Representative.
4. C
Allian issues more preprinted policies than manuscript forms.: Allian Insurance
, Company is a growing regional insurer selling policies in three states, specializing in personal auto and homeowners
policies. Which one of the following is most likely true regarding Allian and the policies it sells? Available answer
options
Select only one option
A
Allian offers modular policies for coverages common to a large number of its insureds.
B
The manuscript forms that Allian issues are developed by ISO.
C
Allian issues more preprinted policies than manuscript forms.
D
Customized coverages are usually issued through a self-contained policy.
5. B
Personal umbrella: Joe and Helene are married with two teenage children and two dogs. They own three cars and a
large house with a swimming pool in the back yard. Their insurance agent advised them that the pool, teenage drivers,
and dogs put them at risk for large liability losses. Which one of the following personal property-casualty insurance
policies would provide them with protection for their high potential for large liability losses?
Available answer options
Select only one option
A
Health insurance
B
Personal umbrella
C
Homeowners
D
Personal auto
6. D. Insurance shortages: Destructive competition in the insurance industry could result in Available answer
options
Select only one option
A
Oversupply of insurance.
B
Inadequate regulation. C
Excess regulation.
D
Insurance shortages.
7. D
Providing laboratory analyses.: Risk control can assist the claims department by Available answer options
Select only one option
A
Reporting the existence of new operations.
B
Designing product recall procedures. C
Developing safety management programs.
D
SOLUTIONS |2026 LATEST UPDATED
1. D. Promote Risk control Activity: Pravalt Construction Company pays less than its competitors for workers
compensation insurance because Pravalt has had substantially fewer employee injuries than other firms in its class.
This illustrates which one of the following benefits of insurance?
Available answer options
Select only one option
AMeet legal requirements
BReduce social burden
CEnable efficient use of resources
D Promote risk control activity
2. B
$350: John's two-year-old bicycle was stolen. The bicycle's purchase price was $700, its current replacement cost is
$800, and depreciation was estimated at $450. What was the bicycle's actual cash value? Available answer options
Select only one option
A
$225
B
$350
C
$450
D
$800
3. C
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 Available
answer options
Select only one option
A
Risk Control Representative.
B
Staff Underwriter.
C
Field Underwriter.
D
Service Representative.
4. C
Allian issues more preprinted policies than manuscript forms.: Allian Insurance
, Company is a growing regional insurer selling policies in three states, specializing in personal auto and homeowners
policies. Which one of the following is most likely true regarding Allian and the policies it sells? Available answer
options
Select only one option
A
Allian offers modular policies for coverages common to a large number of its insureds.
B
The manuscript forms that Allian issues are developed by ISO.
C
Allian issues more preprinted policies than manuscript forms.
D
Customized coverages are usually issued through a self-contained policy.
5. B
Personal umbrella: Joe and Helene are married with two teenage children and two dogs. They own three cars and a
large house with a swimming pool in the back yard. Their insurance agent advised them that the pool, teenage drivers,
and dogs put them at risk for large liability losses. Which one of the following personal property-casualty insurance
policies would provide them with protection for their high potential for large liability losses?
Available answer options
Select only one option
A
Health insurance
B
Personal umbrella
C
Homeowners
D
Personal auto
6. D. Insurance shortages: Destructive competition in the insurance industry could result in Available answer
options
Select only one option
A
Oversupply of insurance.
B
Inadequate regulation. C
Excess regulation.
D
Insurance shortages.
7. D
Providing laboratory analyses.: Risk control can assist the claims department by Available answer options
Select only one option
A
Reporting the existence of new operations.
B
Designing product recall procedures. C
Developing safety management programs.
D
