AINS 101: Practice Questions with Approved Answers | Latest 2024/2025

Which one of the following best describes the concept of pooling? ️ The concept of pooling is that insureds share the cost of each other's losses As a single mother on a very tight budget, Ciara is tempted to skimp on her insurance. However, her friend Mehmet tells her not to skimp on insurance, because it will help manage her cash flows. Which one of the following examples best illustrates Mehmet's point? ️ When her car's windshield breaks, Ciara has to pay only $100 of the $600 cost of replacing it Shelton Industries experienced a fire in its manufacturing plant. Several employees suffered burns and smoke inhalation injuries as they tried to escape the building. Which one of Shelton Industries' commercial propertycasualty policies would pay for the employees' injuries and illnesses? ️ Workers compensation insurance Coverage for money and other business property from various causes of loss such as burglary, robbery, theft, and employee dishonesty typically is provided by ️ Commercial crime insurance All of the following are types of private insurers, EXCEPT: ️ State workers compensation funds The state of Maryland operates a residual auto plan (the Maryland Auto Insurance Fund—MAIF) that provides coverage for drivers who are unable to obtain coverage from private insurers. Which one of the following is the best rationale for the MAIF program? ️ Auto insurance is compulsory, and the program makes it possible for all drivers to have reasonably priced insurance ABC Company experienced a dramatic ideological shift in corporate policies after a national election. This is an example of which one of the following quadrants of risk? ️ Strategic risk AINS 101: Practice Questions with Approved Answers | Latest 2024/2025