AINS 101 Exam Questions With 100% Correct Answers

AINS 101 Exam Questions With 100% Correct Answers Loss exposure - answerany condition or situation that presents a possibility of loss, whether or not an actual loss occurs Premium - answerthe price of the insurance coverage provided for a specified period Indemnify - answerto restore a party who has sustained a loss to the same financial position that party held before the loss occurred Insured - answerany person or organization who is insured under an insurance policy Property-casualty insurance - answerone 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 - answerone of the two main sectors of the insurance industry encompassing numerous types of insurance that cover the financial Stock insurer - answeran insurer that is owned by its stockholders and formed as a corporation for the purpose of earning a profit for the stockholders Mutual insurer - answeran insurer that is owned by its policyholders and formed as a corporation for the purpose of providing insurance to them Surplus-lines insurer - answera non-admitted insurer that is eligible to insure risks that have been exported by a surplus lines licensee in accordance with a surplus lines law Reinsurance - answerthe transfer of insurance risk from one insurer to another through a contractual agreement under which one insurer (the reinsurer) agrees, in return for a reinsurance premium, to indemnify another insurer (the primary insurer) for some or all of the financial consequences of certain loss exposures covered by the primary's insurance policies Pure risk - answera chance of loss or no loss, but no chance of gain Speculative risk - answera chance of loss, no loss, or gain Solvency - answerthe ability of an insurer to meet its financial obligations as they become due, even those resulting from insured losses that may be claimed several years in the future