AINS 101 Exam Knowledge Check with Complete Solutions |Latest 2024/2025

AINS 101 Exam Knowledge Check with Complete Solutions. Actual cash value (ACV) ✔️ The cost to replace property with new property of like kind and quality less depreciation. Adverse selection ✔️ Insuring individuals with a high probability of loss at a cost lower than the insurer would normally charge for that risk because it wasn't aware of the actual risk involved. Binder ✔️ A temporary written or oral agreement to provide insurance coverage until a formal written policy is issued. Book of business ✔️ A group of policies with a common characteristic, such as territory or type of coverage, or all policies written by a particular insurer or agency. Broker ✔️ An independent producer who represents insurance customers. Brokerage ✔️ Compensation in the form of a flat fee or a commission that is paid by the reinsurer to the reinsurance intermediary for services provided. Capacity ✔️ The amount of business an insurer is able to write, usually based on a comparison of the insurer's written premiums to its policyholders' surplus Catastrophe model ✔️ A type of computer program that estimates losses from future potential catastrophic events. Certificate of insurance ✔️ A brief description of insurance coverage prepared by an insurer or its agent and commonly used by policyholders to provide evidence of insurance. Claim ✔️ A demand by a person or business seeking to recover from an insurer for a loss that may be covered by an insurance policy. Claimant ✔️ A party that makes a claim and that can be either a first -party claimant or a third -party claimant. Claims representative ✔️ A person responsible for investigating, evaluating, and settling claims. Compensatory damages ✔️ A payment awarded by a court to reimburse a victim for actual harm. Condition ✔️ Any provision in an insurance policy that qualifies an otherwise enforceable promise of the insurer. Conditional contract ✔️ A contract that one or more parties must perform only under certain conditions. 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. Damages ✔️ Money claimed by, or a monetary award to, a party who has suffered loss or injury for which another party is legally responsible Declarations page ✔️ An insurance policy information page or pages providing specific details about the insured and the subject of the insurance Deductible ✔️ A portion of a covered loss that is not paid by an insurer. Depreciation ✔️ The reduction in value caused by the physical wear and tear or technological or economic obsolescence of property. Exclusion ✔️ A policy provision that eliminates coverage for specified exposures.