AINS 101 - COURSE QUIZ WITH
VERIFIED SOLUTIONS
The rprimary rrole rof rinsurance ris rto r- rcorrect ranswers r-Indemnify rindividuals rand
rorganizations rfor rcovered rlosses.
As ra rsingle rmother ron ra rvery rtight rbudget, rCiara ris rtempted rto rskimp ron rher
rinsurance. rHowever, rher rfriend rMehmet rtells rher rnot rto rskimp ron rinsurance,
rbecause rit rwill rhelp rmanage rher rcash rflows. rWhich rone rof rthe rfollowing rexamples
rbest rillustrates rMehmet's rpoint? r- rcorrect ranswers r-When rher rcar's rwindshield
rbreaks, rCiara rhas rto rpay ronly r$100 rof rthe r$600 rcost rof rreplacing rit.
A rhomeowners rpolicy ris ra rtype rof r- rcorrect ranswers r-Personal rproperty-casualty
rinsurance rpolicy.
, Coverage rfor rmoney rand rother rbusiness rproperty rfrom rvarious rcauses rof rloss rsuch
ras rburglary, rrobbery, rtheft, rand remployee rdishonesty rtypically ris rprovided rby r-
rcorrect ranswers r-Commercial rcrime rinsurance.
Which rone rof rthe rfollowing rdescribes rthe rcharacteristics rof ra rmutual rinsurance
rcompany? r- rcorrect ranswers r-A rcorporation rowned rby rpolicyholders rthat rprovides
rinsurance rto rits rpolicyholders.
An rinsurer rthat rwas rformed rfor rthe rpurpose rof rearning ra rprofit rfor rits rstockholders
ris ra r- rcorrect ranswers r-Stock rinsurer
Autonomous rVehicle rApplications r(AVA) ris ra rstart-up rcompany rthat rdevelops rsafety
rtechnologies rthat rcan rbe rsold rto rcompanies rthat rare rproducing rautonomous
rvehicles. rOne rtechnology rAVA ris rdeveloping rallows ran rautonomous rvehicle rto
rdetect, rextract, rand ranalyze rimages; rand rthen rto rrespond rto rthe rimages. rFor
rexample, rthe rtechnology rwould rdetect ra rpresence rin ra rcrosswalk, rextract rthe
rimage, rand ra rcomputer rwould ranalyze rthe rimage. rWhen rthe rimage rwas
rdetermined rto rbe ra rhuman rbeing, rthe rvehicle rwould rslow rdown ror rstop runtil rthe
rcrosswalk rwas rclear. rThis rtechnology, rwhich ris rdesigned rto rcapture rand ranalyze
rimages, rand rto ract ron rthe rrecognition rof rthe rimage; ris rcalled r- rcorrect ranswers r-
Computer rvision
In ran reffort rto rreduce rexpenses, rincrease rprofitability, rand rreduce rhuman rerrors;
rABC rInsurance rCompany rdecided rto rautomate rmost rof rits rpersonal rlines
runderwriting rfunction. rThe rcompany rnow ruses rstandardized rapplication rforms rthat
rare rsubmitted relectronically rto rone rof rthe rcompany's rregional roffices. rAt reach
rregional roffice, ra rcomputer rwith ra rscanner rreads rthe rapplications. rThe rcomputer
rhas rbeen rprogrammed rwith racceptable ranswers rto rthe rquestions. rIf rthe ranswers
ron rthe rapplication rare rall racceptable, rthe rpolicy ris rautomatically rissued. rRejected
rapplications rare rautomatically rforwarded rto ra rhuman runderwriter rwho rreviews
rthem. rThe ruse rof rthis rtechnology rhas rreduced rthe rcompany's rexpense rratio rby rtwo
rand ra rhalf rpercent, rand rreduced rthe rtime rit rtakes rto rissue ra rpolicy. rABC
rInsurance rCompany's ruse rof rcomputers rto revaluate rapplications relectronically ris ran
rapplication rof r- rcorrect ranswers r-Artificial rintelligence
Carlos ris rnew rto rthe rinsurance rbusiness rand ris rlearning rabout rinsurance rregulation
rand rwhat rhe, rnow rworking rwith rGrady rInsurance, rwill rneed rto rbe raware rof
rregarding rthe rsubject rof rcompliance. rWhich rone rof rthe rfollowing rwill rCarlos rfind ris
raccurate ras rhe rbetter runderstands rwhy rinsurance ris rregulated? r- rcorrect ranswers r-
Insurance rregulation rprotects rcustomers rby rguaranteeing rinsurance ris ravailable rand
raccessible rto reveryone rwho rneeds rit
One rof rthe rreasons rfor rinsurance rregulation ris rto rprevent rdestructive rcompetition.
rIn rwhich rone rof rthe rfollowing rscenarios rwould rdestructive rcompetition rbe rexhibited?
r- rcorrect ranswers r-East rInsurance rcomes rup rwith ra rnew rrate rstructure rallowing
r"preferred rcustomers" rdiscounted rpolicies rwhen rthey rcontinually rrenew ryear rafter
VERIFIED SOLUTIONS
The rprimary rrole rof rinsurance ris rto r- rcorrect ranswers r-Indemnify rindividuals rand
rorganizations rfor rcovered rlosses.
As ra rsingle rmother ron ra rvery rtight rbudget, rCiara ris rtempted rto rskimp ron rher
rinsurance. rHowever, rher rfriend rMehmet rtells rher rnot rto rskimp ron rinsurance,
rbecause rit rwill rhelp rmanage rher rcash rflows. rWhich rone rof rthe rfollowing rexamples
rbest rillustrates rMehmet's rpoint? r- rcorrect ranswers r-When rher rcar's rwindshield
rbreaks, rCiara rhas rto rpay ronly r$100 rof rthe r$600 rcost rof rreplacing rit.
A rhomeowners rpolicy ris ra rtype rof r- rcorrect ranswers r-Personal rproperty-casualty
rinsurance rpolicy.
, Coverage rfor rmoney rand rother rbusiness rproperty rfrom rvarious rcauses rof rloss rsuch
ras rburglary, rrobbery, rtheft, rand remployee rdishonesty rtypically ris rprovided rby r-
rcorrect ranswers r-Commercial rcrime rinsurance.
Which rone rof rthe rfollowing rdescribes rthe rcharacteristics rof ra rmutual rinsurance
rcompany? r- rcorrect ranswers r-A rcorporation rowned rby rpolicyholders rthat rprovides
rinsurance rto rits rpolicyholders.
An rinsurer rthat rwas rformed rfor rthe rpurpose rof rearning ra rprofit rfor rits rstockholders
ris ra r- rcorrect ranswers r-Stock rinsurer
Autonomous rVehicle rApplications r(AVA) ris ra rstart-up rcompany rthat rdevelops rsafety
rtechnologies rthat rcan rbe rsold rto rcompanies rthat rare rproducing rautonomous
rvehicles. rOne rtechnology rAVA ris rdeveloping rallows ran rautonomous rvehicle rto
rdetect, rextract, rand ranalyze rimages; rand rthen rto rrespond rto rthe rimages. rFor
rexample, rthe rtechnology rwould rdetect ra rpresence rin ra rcrosswalk, rextract rthe
rimage, rand ra rcomputer rwould ranalyze rthe rimage. rWhen rthe rimage rwas
rdetermined rto rbe ra rhuman rbeing, rthe rvehicle rwould rslow rdown ror rstop runtil rthe
rcrosswalk rwas rclear. rThis rtechnology, rwhich ris rdesigned rto rcapture rand ranalyze
rimages, rand rto ract ron rthe rrecognition rof rthe rimage; ris rcalled r- rcorrect ranswers r-
Computer rvision
In ran reffort rto rreduce rexpenses, rincrease rprofitability, rand rreduce rhuman rerrors;
rABC rInsurance rCompany rdecided rto rautomate rmost rof rits rpersonal rlines
runderwriting rfunction. rThe rcompany rnow ruses rstandardized rapplication rforms rthat
rare rsubmitted relectronically rto rone rof rthe rcompany's rregional roffices. rAt reach
rregional roffice, ra rcomputer rwith ra rscanner rreads rthe rapplications. rThe rcomputer
rhas rbeen rprogrammed rwith racceptable ranswers rto rthe rquestions. rIf rthe ranswers
ron rthe rapplication rare rall racceptable, rthe rpolicy ris rautomatically rissued. rRejected
rapplications rare rautomatically rforwarded rto ra rhuman runderwriter rwho rreviews
rthem. rThe ruse rof rthis rtechnology rhas rreduced rthe rcompany's rexpense rratio rby rtwo
rand ra rhalf rpercent, rand rreduced rthe rtime rit rtakes rto rissue ra rpolicy. rABC
rInsurance rCompany's ruse rof rcomputers rto revaluate rapplications relectronically ris ran
rapplication rof r- rcorrect ranswers r-Artificial rintelligence
Carlos ris rnew rto rthe rinsurance rbusiness rand ris rlearning rabout rinsurance rregulation
rand rwhat rhe, rnow rworking rwith rGrady rInsurance, rwill rneed rto rbe raware rof
rregarding rthe rsubject rof rcompliance. rWhich rone rof rthe rfollowing rwill rCarlos rfind ris
raccurate ras rhe rbetter runderstands rwhy rinsurance ris rregulated? r- rcorrect ranswers r-
Insurance rregulation rprotects rcustomers rby rguaranteeing rinsurance ris ravailable rand
raccessible rto reveryone rwho rneeds rit
One rof rthe rreasons rfor rinsurance rregulation ris rto rprevent rdestructive rcompetition.
rIn rwhich rone rof rthe rfollowing rscenarios rwould rdestructive rcompetition rbe rexhibited?
r- rcorrect ranswers r-East rInsurance rcomes rup rwith ra rnew rrate rstructure rallowing
r"preferred rcustomers" rdiscounted rpolicies rwhen rthey rcontinually rrenew ryear rafter
