AIS320 PRACTICE QUESTIONS WITH VERIFIED ANSWERS
Larissa's continuous improvement initiative includes components of customer orientation,
process improvement, employee involvement, and management commitment. Which one
of Larissa's components requires leadership alignment, accountability, and leaders'
willingness to listen to be successful?
A. Employee involvement
B. Management commitment
C. Customer orientation
D. Process improvement - Answers - A. Employee involvement
Three Hills Insurance maintains financial reserve adequacy to pay for future claims. It
does this by generating capital and improving financial well-being through equity financing,
business operations, issuing bonds, and obtaining reinsurance. Which one of Three Hills'
financial strategies involves raising money from investors in exchange for stock in the
company?
A. Equity financing
B. Business operations
C. Issuing bonds
D. Obtaining reinsurance - Answers - A. Equity financing
Glaston Insurance Company receives information and regulation from many different
entities, including commissioners of state insurance departments, federal regulators,
National Association of Insurance Commissioners, and state regulators. Which one of the
entities to which Glaston is subject has no direct regulatory authority of its own?
A. National Association of Insurance Commissioners
B. Federal regulators
C. Commissioners and state insurance departments
D. State regulators - Answers - A. National Association of Insurance Commissioners
Luis is involved in insurance product development. In order to be sure the products he is
developing add value, Luis researches the markets by evaluating focus groups, predictive
analytics, customer profiles, and distribution channels. Which one of Luis' techniques uses
statistical analysis to develop models that forecast future events or behaviors?
A. Focus groups
B. Distribution channels
C. Customer profiles
D. Predictive analytics - Answers - D. Predictive analytics
Insurance professional Adam is responsible for providing financial coverage for his
customers, creating new insurance products, providing excellent customer service, and
striving for organizational improvement. Which one of Adam's responsibilities creates
sales opportunities, attracts new customers, and builds strong relationships and customer
loyalty?
A. Organizational improvement
B. New products
C. Customer service
D. Financial coverage - Answers - C. Customer service
, Fatima works for Greatview Insurance, which has missions to provide quality financial
coverage for its customers, create innovative new insurance products, provide excellent
customer service, and strive for organizational improvement. Which one of Greatview's
missions enhances Fatima's personal job satisfaction by creating a pleasant and fulfilling
work environment with strong customer relationships that are sources of pride and
satisfaction for her?
Select one:
A. Organizational improvement
B. New insurance products
C. Excellent customer service
D. Quality financial coverage - Answers - C. Excellent customer service
Robin works with a variety of commercial lines customers and strives to tailor coverage to
their needs to the greatest degree possible. Which one of the following is the first step in
that process?
A. Communicate to the customer in a logical, understandable way
B. Learn as much as possible about the customer
C. Understand the coverage provided by each endorsement
D. Understand the coverages, exclusions and limitations of each policy form - Answers -
D. Understand the coverages, exclusions and limitations of each policy form
In her work as a commercial lines producer, Lauren has to design coverages to meet both
needs that are common to many customers and needs that are specific to a given
customer. Which one of the following is an example of a common need?
A. Adding an endorsement to cover exposures from the loss of a certain supplier
B. Designing coverage that adjusts for times of year when the customer carries more
inventory
C. Adding a mortgage clause to a property insurance policy to protect the mortgagee
D. Insuring a single, costly piece of manufacturing equipment - Answers - C. Adding a
mortgage clause to a property insurance policy to protect the mortgagee
After meeting with prospects who are interested in obtaining home and auto coverage,
Dilip, an insurance broker, has them sign a document stating that he will act as their
representative in dealings with the insurer. This document is called
A. A statement of intent.
B. A nonbinding submission.
C. A broker of record letter.
D. A limited power of attorney. - Answers - C. A broker of record letter.
Because her agency deals primarily with personal lines coverages, most of the policies
Aisha handles are automatically renewed. In which one of the following circumstances
might she have to prepare a binder and an invoice for a renewal?
A. If the premium has decreased
B. If the new policy is not issued by the renewal date
C. If the coverage term has changed
D. If the premium has increased - Answers - B. If the new policy is not issued by the
renewal date
Insurtech and risktech are the foundation of a mindset driven by customer demands to
Larissa's continuous improvement initiative includes components of customer orientation,
process improvement, employee involvement, and management commitment. Which one
of Larissa's components requires leadership alignment, accountability, and leaders'
willingness to listen to be successful?
A. Employee involvement
B. Management commitment
C. Customer orientation
D. Process improvement - Answers - A. Employee involvement
Three Hills Insurance maintains financial reserve adequacy to pay for future claims. It
does this by generating capital and improving financial well-being through equity financing,
business operations, issuing bonds, and obtaining reinsurance. Which one of Three Hills'
financial strategies involves raising money from investors in exchange for stock in the
company?
A. Equity financing
B. Business operations
C. Issuing bonds
D. Obtaining reinsurance - Answers - A. Equity financing
Glaston Insurance Company receives information and regulation from many different
entities, including commissioners of state insurance departments, federal regulators,
National Association of Insurance Commissioners, and state regulators. Which one of the
entities to which Glaston is subject has no direct regulatory authority of its own?
A. National Association of Insurance Commissioners
B. Federal regulators
C. Commissioners and state insurance departments
D. State regulators - Answers - A. National Association of Insurance Commissioners
Luis is involved in insurance product development. In order to be sure the products he is
developing add value, Luis researches the markets by evaluating focus groups, predictive
analytics, customer profiles, and distribution channels. Which one of Luis' techniques uses
statistical analysis to develop models that forecast future events or behaviors?
A. Focus groups
B. Distribution channels
C. Customer profiles
D. Predictive analytics - Answers - D. Predictive analytics
Insurance professional Adam is responsible for providing financial coverage for his
customers, creating new insurance products, providing excellent customer service, and
striving for organizational improvement. Which one of Adam's responsibilities creates
sales opportunities, attracts new customers, and builds strong relationships and customer
loyalty?
A. Organizational improvement
B. New products
C. Customer service
D. Financial coverage - Answers - C. Customer service
, Fatima works for Greatview Insurance, which has missions to provide quality financial
coverage for its customers, create innovative new insurance products, provide excellent
customer service, and strive for organizational improvement. Which one of Greatview's
missions enhances Fatima's personal job satisfaction by creating a pleasant and fulfilling
work environment with strong customer relationships that are sources of pride and
satisfaction for her?
Select one:
A. Organizational improvement
B. New insurance products
C. Excellent customer service
D. Quality financial coverage - Answers - C. Excellent customer service
Robin works with a variety of commercial lines customers and strives to tailor coverage to
their needs to the greatest degree possible. Which one of the following is the first step in
that process?
A. Communicate to the customer in a logical, understandable way
B. Learn as much as possible about the customer
C. Understand the coverage provided by each endorsement
D. Understand the coverages, exclusions and limitations of each policy form - Answers -
D. Understand the coverages, exclusions and limitations of each policy form
In her work as a commercial lines producer, Lauren has to design coverages to meet both
needs that are common to many customers and needs that are specific to a given
customer. Which one of the following is an example of a common need?
A. Adding an endorsement to cover exposures from the loss of a certain supplier
B. Designing coverage that adjusts for times of year when the customer carries more
inventory
C. Adding a mortgage clause to a property insurance policy to protect the mortgagee
D. Insuring a single, costly piece of manufacturing equipment - Answers - C. Adding a
mortgage clause to a property insurance policy to protect the mortgagee
After meeting with prospects who are interested in obtaining home and auto coverage,
Dilip, an insurance broker, has them sign a document stating that he will act as their
representative in dealings with the insurer. This document is called
A. A statement of intent.
B. A nonbinding submission.
C. A broker of record letter.
D. A limited power of attorney. - Answers - C. A broker of record letter.
Because her agency deals primarily with personal lines coverages, most of the policies
Aisha handles are automatically renewed. In which one of the following circumstances
might she have to prepare a binder and an invoice for a renewal?
A. If the premium has decreased
B. If the new policy is not issued by the renewal date
C. If the coverage term has changed
D. If the premium has increased - Answers - B. If the new policy is not issued by the
renewal date
Insurtech and risktech are the foundation of a mindset driven by customer demands to
