AINS 101 Exam | Updated Questions
and Answers | Newest 2026 Release
• Insurance shortages -✓✓ Destructive competition in the insurance industry could
result in
• Veronica directly contacts Maria for guidance on how to report a stolen car,
Maria provides that, and claims rep Sean takes over after an introduction from
Maria -✓✓ Maria is a new producer who wears many hats when forming
relationships and then serving her established customers. In this capacity, which
one of the following scenarios most accurately describes her ongoing work
wearing the hat of "claims handler"?
• $350 Replacement cost - Depreciation -✓✓ 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?
• Underwriting authority reports -✓✓ All of the following are sources of
underwriting information to evaluate an insurance submission, EXCEPT:
• Implemented risk management techniques may prove to be ineffective or become
obsolete -✓✓ Which one of the following best explains why producers should be
alert to changes in clients' loss exposures?
• 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
, • Balance sheet -✓✓ Rachel is considering investing in the stock of an insurance
company. Which one of the following is likely to provide the best indication of the
insurer's financial position at this point in time?
• Support producers and insureds -✓✓ At Greenfield Insurance Company,
Bernadette and Rachel are corporate underwriters, and Tomas and Jose are field
underwriters. All of the following are underwriting activities typically performed
by corporate (or staff) underwriters like Bernadette and Rachel, EXCEPT:
• Large number of similar exposure units -✓✓ Oscar's custom-built vehicle looks
like a sausage sandwich on wheels. He plans to drive it to special events at schools
around the country where it will serve as a mobile billboard to promote his
product. Oscar is surprised to learn that insurers are reluctant to insure his vehicle
because it fails to meet one of the ideal characteristics of an insurable risk. Which
characteristic is Oscar's vehicle least likely to meet?
• Capacity -✓✓ Which one of the following is the amount of business an insurer
can write based on regulatory guidelines, usually a comparsion of the insurer's
written premiums to the policyholders' surplus?
• Mutual insurer -✓✓ Joe is the owner of JG Auto Repair. He is always frustrated
with the amount of commercial insurance premium he pays every year, even
though he has not had a single claim in over 10 years. Joe is looking to partner
with an insurance company that will share its profits and maybe return a portion of
his premium if the results are good. Which one of the following types of insurer is
the right fit for Joe?
• Transfer -✓✓ When the Smiths purchased their first home, they were required to
purchase a homeowners insurance policy in order to get a mortgage. Because they
did not have a lot of extra money in their budget, they wanted to buy as little
insurance coverage as possible. The Smiths' insurance agent advised them that if
and Answers | Newest 2026 Release
• Insurance shortages -✓✓ Destructive competition in the insurance industry could
result in
• Veronica directly contacts Maria for guidance on how to report a stolen car,
Maria provides that, and claims rep Sean takes over after an introduction from
Maria -✓✓ Maria is a new producer who wears many hats when forming
relationships and then serving her established customers. In this capacity, which
one of the following scenarios most accurately describes her ongoing work
wearing the hat of "claims handler"?
• $350 Replacement cost - Depreciation -✓✓ 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?
• Underwriting authority reports -✓✓ All of the following are sources of
underwriting information to evaluate an insurance submission, EXCEPT:
• Implemented risk management techniques may prove to be ineffective or become
obsolete -✓✓ Which one of the following best explains why producers should be
alert to changes in clients' loss exposures?
• 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
, • Balance sheet -✓✓ Rachel is considering investing in the stock of an insurance
company. Which one of the following is likely to provide the best indication of the
insurer's financial position at this point in time?
• Support producers and insureds -✓✓ At Greenfield Insurance Company,
Bernadette and Rachel are corporate underwriters, and Tomas and Jose are field
underwriters. All of the following are underwriting activities typically performed
by corporate (or staff) underwriters like Bernadette and Rachel, EXCEPT:
• Large number of similar exposure units -✓✓ Oscar's custom-built vehicle looks
like a sausage sandwich on wheels. He plans to drive it to special events at schools
around the country where it will serve as a mobile billboard to promote his
product. Oscar is surprised to learn that insurers are reluctant to insure his vehicle
because it fails to meet one of the ideal characteristics of an insurable risk. Which
characteristic is Oscar's vehicle least likely to meet?
• Capacity -✓✓ Which one of the following is the amount of business an insurer
can write based on regulatory guidelines, usually a comparsion of the insurer's
written premiums to the policyholders' surplus?
• Mutual insurer -✓✓ Joe is the owner of JG Auto Repair. He is always frustrated
with the amount of commercial insurance premium he pays every year, even
though he has not had a single claim in over 10 years. Joe is looking to partner
with an insurance company that will share its profits and maybe return a portion of
his premium if the results are good. Which one of the following types of insurer is
the right fit for Joe?
• Transfer -✓✓ When the Smiths purchased their first home, they were required to
purchase a homeowners insurance policy in order to get a mortgage. Because they
did not have a lot of extra money in their budget, they wanted to buy as little
insurance coverage as possible. The Smiths' insurance agent advised them that if
