AINS 101 Exam Prep
A claims representative need to ask 4 questions while processing a belongings coverage
declare. Can you call them? - ANS-The 4 questions claims representatives ought to ask are: •
Does the insured have an insurable hobby inside the assets? • Is the damaged assets
blanketed with the aid of the policy? • Is the purpose of loss blanketed by means of the
coverage? • Do any extra coverages, endorsements, or coverage boundaries follow?
A house owners coverage is a type of - ANS-Personal property-casualty insurance coverage.
A legal responsibility adjuster should be concerned with unique, out-of-pocket costs whilst
evaluating the damages being claimed. The technical term for such expenses is
A. Measurable damages.
B. Special damages.
C. General damages.
D. Punitive damages. - ANS-Special damages. (The technical term for such costs is special
damages.)
A liability loss has the subsequent damages:
Medical expenses: $10,000
Damages for disfigurement: $50,000
Damages for ache and struggling: $a hundred,000
What is the quantity of popular damages?
A. $ 60,000
B. $110,000
C. $a hundred and fifty,000
D. $a hundred and sixty,000 - ANS-$150,000 (The amount of widespread damages is $one
hundred fifty,000. General damages are for losses that do not have a specific monetary value.)
A legal responsibility loss has the following damages:
Medical charges: $10,000
Damages for disfigurement: $50,000
Damages for ache and struggling: $100,000
What is the amount of unique damages?
A. $10,000
B. $50,000
C. $one hundred,000
,D. $one hundred sixty,000 - ANS-$10,000 (The quantity of unique damages is $10,000. Special
damages are for precise, identifiable expenses.)
A person or entity that could suffer a economic loss if assets had been damaged has
A. A contractual hobby.
B. A discretionary hobby.
C. An insurable hobby.
D. A renewable hobby. - ANS-An insurable interest. (A man or woman or entity that could suffer
a monetary loss if belongings have been broken has an insurable hobby.)
A reinsurance company
A. Assumes loss exposures from a primary insurer.
B. Provides number one coverage for loss exposures that personal insurers are unwilling to
provide.
C. Is shaped to write all or part of the coverage for a figure corporation.
D. Transfers losses to a number one insurer. - ANS-Assumes loss exposures from a primary
insurer.
A self-employed tattoo artist desires to make certain she's protected in case a purchaser sues
her. What coverage type might her agent recommend? - ANS-An agent might advise a
manuscript coverage because her coverage needs are in all likelihood no longer common to a
massive number of insureds.
A inventory insurer differs from a reciprocal coverage trade wherein one of the following
approaches?
A. Both are formed to provide earnings to buyers. However, the inventory insurer is managed
via a board of directors.
B. A stock insurer offers coverage to its policyholder-proprietors. A reciprocal insurance
alternate gives coverage to buyers.
C. Both are owned by using stockholders. However, the reciprocal insurance alternate offers
coverage to investors.
D. Stockholders own a inventory insurer. Members very own a reciprocal insurance change. -
ANS-Stockholders personal a stock insurer. Members personal a reciprocal insurance alternate.
(Stockholders personal a stock insurer. Members (subscribers) own a reciprocal coverage
exchange.)
A type of insurer this is owned by policyholders and might pay dividends to policyholders as a
go back of a part of premiums paid is a - ANS-Mutual insurer.
ABC Company skilled a dramatic ideological shift in company policies after a countrywide
election. This is an instance of which one of the following quadrants of threat?
,A. Operational chance
B. Financial risk
C. Strategic threat
D. Hazard danger - ANS-Strategic Risk
Actual Cash Value (ACV) - ANS-The price to replace belongings with new belongings of like
type and first-class much less depreciation
Actual coins fee (ACV) is
A. Agreed value minus depreciation.
B. Replacement fee plus depreciation.
C. Replacement price minus agreed fee.
D. Replacement fee minus depreciation. - ANS-Replacement fee minus depreciation.
Adhering to the traits of an preferably insurable loss publicity in promoting insurance help
assure that
A. The losses associated with it normally contain small amounts.
B. The insurer is able to are expecting the amount and timing of each destiny loss.
C. The insurer can price a high top class for the insurance.
D. The insurer is able to fee a top class that the insured can afford to pay. - ANS-The insurer is
able to price a top rate that the insured can find the money for to pay. (Adhering to the
characteristics of an preferably insurable loss publicity in promoting coverage assist guarantee
that the insurer is capable of price a premium that the insured can find the money for to pay.)
Adjuster Toni is evaluating damages in a physical damage liability claim wherein she has
determined that the insured is absolutely at fault for the accident. The claimant suffered a sprain
and strain damage to his neck. His special damages total $1,500. He changed into out of work
for every week, changed into disabled and prevented from performing some everyday sports for
a month, and attended physical therapy for six weeks. In assessing general damages, Toni
need to
A. Multiply $1,500, the quantity of unique damages, by way of six, the wide variety of weeks of
bodily remedy, and pay $9,000.
B. Use beyond cases which might be comparable as a manual.
C. Consider what she might need to be paid if she have been in claimant's footwear.
D. Multiply the amount of unique damages of $1,500 through three almost always of thumb, and
pay $four,500. - ANS-Use beyond instances which might be comparable as a guide.
(In assessing general damages, Toni have to use past cases which are comparable as a guide.)
Adverse choice - ANS-Insuring people with a high opportunity of loss at a fee decrease than the
insurer could usually rate for that danger because it wasn't privy to the real danger concerned
, After Marvin's car become stolen, and he turned into reimbursed for the loss through Greatson
Insurance, the police located and again the vehicle, which became dented and spray-painted,
however nevertheless had components that could be usable. Greatson's rights to get better and
promote or in any other case do away with insured assets on which it has paid a total loss are
referred to as
A. Constructive rights.
B. Catastrophe rights.
C. Fiduciary rights.
D. Salvage rights. - ANS-Salvage rights. (Salvage rights allow the insurer to recover and sell or
otherwise eliminate insured property on which the insurer has paid a total loss.)
Agency - ANS-A felony, consensual relationship that exists while one birthday party, the agent,
acts on behalf of some other celebration, the main.
Agency expiration list - ANS-The record of an insurance business enterprise's gift policyholders
and the dates their regulations expire.
Agent - ANS-In the organisation relationship, the birthday celebration this is legal through the
fundamental to behave at the foremost's behalf.
Aimee lately commonplace a activity in the Underwriting department at Noble Insurance
Company. Her obligations will include developing insurance paperwork, arranging reinsurance
agreements, and conducting underwriting audits. Which one of the following is the name of
Aimee's new process?
A. Field Underwriter
B. Underwriting Technician
C. Corporate Underwriter
D. Line Underwriter - ANS-Corporate Underwriter (Corporate underwriters, once in a while
called workforce underwriters, perform responsibilities including: developing insurance
bureaucracy, arranging reinsurance, conducting underwriting audits, researching the market,
and revising underwriting suggestions.)
Alicia works for the Drewman Agency, Sandi at insurer Greenway Insurance, and Rosa at
Grossman Brokers, all as customer service representatives. Which one of the following is real
concerning their paintings?
A. Alicia can process coverage endorsements and give an explanation for insurance to her
clients.
B. Sandi, Alicia, and Rosa aren't concerned within the era of new commercial enterprise.
C. Rosa can provide superior provider but is not usually involved in attracting new customers.
A claims representative need to ask 4 questions while processing a belongings coverage
declare. Can you call them? - ANS-The 4 questions claims representatives ought to ask are: •
Does the insured have an insurable hobby inside the assets? • Is the damaged assets
blanketed with the aid of the policy? • Is the purpose of loss blanketed by means of the
coverage? • Do any extra coverages, endorsements, or coverage boundaries follow?
A house owners coverage is a type of - ANS-Personal property-casualty insurance coverage.
A legal responsibility adjuster should be concerned with unique, out-of-pocket costs whilst
evaluating the damages being claimed. The technical term for such expenses is
A. Measurable damages.
B. Special damages.
C. General damages.
D. Punitive damages. - ANS-Special damages. (The technical term for such costs is special
damages.)
A liability loss has the subsequent damages:
Medical expenses: $10,000
Damages for disfigurement: $50,000
Damages for ache and struggling: $a hundred,000
What is the quantity of popular damages?
A. $ 60,000
B. $110,000
C. $a hundred and fifty,000
D. $a hundred and sixty,000 - ANS-$150,000 (The amount of widespread damages is $one
hundred fifty,000. General damages are for losses that do not have a specific monetary value.)
A legal responsibility loss has the following damages:
Medical charges: $10,000
Damages for disfigurement: $50,000
Damages for ache and struggling: $100,000
What is the amount of unique damages?
A. $10,000
B. $50,000
C. $one hundred,000
,D. $one hundred sixty,000 - ANS-$10,000 (The quantity of unique damages is $10,000. Special
damages are for precise, identifiable expenses.)
A person or entity that could suffer a economic loss if assets had been damaged has
A. A contractual hobby.
B. A discretionary hobby.
C. An insurable hobby.
D. A renewable hobby. - ANS-An insurable interest. (A man or woman or entity that could suffer
a monetary loss if belongings have been broken has an insurable hobby.)
A reinsurance company
A. Assumes loss exposures from a primary insurer.
B. Provides number one coverage for loss exposures that personal insurers are unwilling to
provide.
C. Is shaped to write all or part of the coverage for a figure corporation.
D. Transfers losses to a number one insurer. - ANS-Assumes loss exposures from a primary
insurer.
A self-employed tattoo artist desires to make certain she's protected in case a purchaser sues
her. What coverage type might her agent recommend? - ANS-An agent might advise a
manuscript coverage because her coverage needs are in all likelihood no longer common to a
massive number of insureds.
A inventory insurer differs from a reciprocal coverage trade wherein one of the following
approaches?
A. Both are formed to provide earnings to buyers. However, the inventory insurer is managed
via a board of directors.
B. A stock insurer offers coverage to its policyholder-proprietors. A reciprocal insurance
alternate gives coverage to buyers.
C. Both are owned by using stockholders. However, the reciprocal insurance alternate offers
coverage to investors.
D. Stockholders own a inventory insurer. Members very own a reciprocal insurance change. -
ANS-Stockholders personal a stock insurer. Members personal a reciprocal insurance alternate.
(Stockholders personal a stock insurer. Members (subscribers) own a reciprocal coverage
exchange.)
A type of insurer this is owned by policyholders and might pay dividends to policyholders as a
go back of a part of premiums paid is a - ANS-Mutual insurer.
ABC Company skilled a dramatic ideological shift in company policies after a countrywide
election. This is an instance of which one of the following quadrants of threat?
,A. Operational chance
B. Financial risk
C. Strategic threat
D. Hazard danger - ANS-Strategic Risk
Actual Cash Value (ACV) - ANS-The price to replace belongings with new belongings of like
type and first-class much less depreciation
Actual coins fee (ACV) is
A. Agreed value minus depreciation.
B. Replacement fee plus depreciation.
C. Replacement price minus agreed fee.
D. Replacement fee minus depreciation. - ANS-Replacement fee minus depreciation.
Adhering to the traits of an preferably insurable loss publicity in promoting insurance help
assure that
A. The losses associated with it normally contain small amounts.
B. The insurer is able to are expecting the amount and timing of each destiny loss.
C. The insurer can price a high top class for the insurance.
D. The insurer is able to fee a top class that the insured can afford to pay. - ANS-The insurer is
able to price a top rate that the insured can find the money for to pay. (Adhering to the
characteristics of an preferably insurable loss publicity in promoting coverage assist guarantee
that the insurer is capable of price a premium that the insured can find the money for to pay.)
Adjuster Toni is evaluating damages in a physical damage liability claim wherein she has
determined that the insured is absolutely at fault for the accident. The claimant suffered a sprain
and strain damage to his neck. His special damages total $1,500. He changed into out of work
for every week, changed into disabled and prevented from performing some everyday sports for
a month, and attended physical therapy for six weeks. In assessing general damages, Toni
need to
A. Multiply $1,500, the quantity of unique damages, by way of six, the wide variety of weeks of
bodily remedy, and pay $9,000.
B. Use beyond cases which might be comparable as a manual.
C. Consider what she might need to be paid if she have been in claimant's footwear.
D. Multiply the amount of unique damages of $1,500 through three almost always of thumb, and
pay $four,500. - ANS-Use beyond instances which might be comparable as a guide.
(In assessing general damages, Toni have to use past cases which are comparable as a guide.)
Adverse choice - ANS-Insuring people with a high opportunity of loss at a fee decrease than the
insurer could usually rate for that danger because it wasn't privy to the real danger concerned
, After Marvin's car become stolen, and he turned into reimbursed for the loss through Greatson
Insurance, the police located and again the vehicle, which became dented and spray-painted,
however nevertheless had components that could be usable. Greatson's rights to get better and
promote or in any other case do away with insured assets on which it has paid a total loss are
referred to as
A. Constructive rights.
B. Catastrophe rights.
C. Fiduciary rights.
D. Salvage rights. - ANS-Salvage rights. (Salvage rights allow the insurer to recover and sell or
otherwise eliminate insured property on which the insurer has paid a total loss.)
Agency - ANS-A felony, consensual relationship that exists while one birthday party, the agent,
acts on behalf of some other celebration, the main.
Agency expiration list - ANS-The record of an insurance business enterprise's gift policyholders
and the dates their regulations expire.
Agent - ANS-In the organisation relationship, the birthday celebration this is legal through the
fundamental to behave at the foremost's behalf.
Aimee lately commonplace a activity in the Underwriting department at Noble Insurance
Company. Her obligations will include developing insurance paperwork, arranging reinsurance
agreements, and conducting underwriting audits. Which one of the following is the name of
Aimee's new process?
A. Field Underwriter
B. Underwriting Technician
C. Corporate Underwriter
D. Line Underwriter - ANS-Corporate Underwriter (Corporate underwriters, once in a while
called workforce underwriters, perform responsibilities including: developing insurance
bureaucracy, arranging reinsurance, conducting underwriting audits, researching the market,
and revising underwriting suggestions.)
Alicia works for the Drewman Agency, Sandi at insurer Greenway Insurance, and Rosa at
Grossman Brokers, all as customer service representatives. Which one of the following is real
concerning their paintings?
A. Alicia can process coverage endorsements and give an explanation for insurance to her
clients.
B. Sandi, Alicia, and Rosa aren't concerned within the era of new commercial enterprise.
C. Rosa can provide superior provider but is not usually involved in attracting new customers.
