AINS 21 Segment A (ch 1-3) Exam Questions With 100% Correct Answers.

Loss exposure - Any condition or situation that presents a possibility of loss, whether or not an actual loss occurs Risk management - The process of making and implementing decisions that will minimize the adverse effects of accidental losses on an organization Loss prevention - A risk control technique that reduces the frequency of a particular loss Loss reduction - A risk control technique that reduces the severity of a particular loss Exposure unit - A fundamental measure of the loss exposure assumed by an insurer Property-casualty insurance - One of the two main sectors of the insurance industry, encompassing numerous types of insurance, most of which cover the financial consequences of damage to one's own property or legal liability to others. Life-health insurance - One of the two main sectors of the insurance industry, encompassing numerous types of insurance that cover the financial consequences of death, injury, or sickness Utmost good faith - An obligation to act in complete honesty and to disclose all relevant facts Contract of adhesion - Any contract in which one party must either accept the agreement as written by the other party or reject it Contract of indemnity - A contract in which the insurer agrees, in the event of a covered loss, to pay an amount directly related to the amount of the loss Self-contained policy - A single document that contains all the agreements between the insured and the insurer and that forms a complete insurance policyModular policy - An insurance policy that consists of several different documents, none of which by itself forms a complete policy Property insurance - Any type of insurance that indemnifies an insured who suffers a financial loss because property has been lost, stolen, damaged, or destroyed Liability insurance - Insurance that covers losses resulting from the insured's liability to others Homeowners policy - Policy that covers most of the property and liability loss exposures that arise out of residential property ownership and occupancy, as well as property and liability loss exposures that individuals and families may have while they are away from their residences. Personal liability coverage - Coverage for damages, plus costs of any defense, related to a claim or suit brought against the insured that resulted from bodily injury or property damage caused by an occurrence covered under the policy Personal auto policy (PAP) - An insurance policy that covers an individual or a family against loss exposures arising out of the ownership, maintenance, or use of automobile Comprehensive coverage - Coverage for direct and accidental loss or damage to a covered auto by any peril except collision or overturn or a peril specifically excluded Personal watercraft policy - An insurance policy that covers an individual's or a family's loss exposures arising out of the ownership, maintenance, or use of watercraft used principally for recreational or personal transportation purposes Umbrella liability policy - A liability policy that provides excess coverage above underlying policies and may also provide coverage not available in the underlying policies, subject to a self insured retentionLiability coverage - Coverage that protects the insured from damages owed because of legal liability to another party. For auto policies, it protects insureds against liability arising out of the ownership or operation of automobiles