AINS 101 Exam Questions And Answer 2025

AINS 101 Exam Questions And Answer 2025 Risk - Correct Answer Uncertainty about outcomes, can be positive or negative - Risk management is concerned with both positive and negative, insurance alleviates the uncertainty associated with negative financial consequences Transferring - Correct Answer The act of moving the financial consequences of unanticipated events to an insurer Pooling - Correct Answer All insureds share the cost of each other's losses. - Helps to keep premiums affordable and helps insurers cover large losses when they occur The Benefits of Insurance - Correct Answer 1. Paying for losses 2. Managing cash flow 3. Complying with legal requirements 4. Promoting risk control activities Personal Property Insurance - Correct Answer Protects an insured's assets by covering the cost of repairing or replacing property that is damaged, lost, or destroyed. Can cover related lost income or extra expenses Personal Liability Insurance - Correct Answer Provides payments for injury to others or damage to other's property for which the insured is legally responsible. It also covers the cost to defend the insured against related lawsuits Life Insurance - Correct Answer Replaces the income-earning potential lost through death. Helps pay expenses related to an insureds death Health Insurance - Correct Answer Protects individuals and families from financial losses caused by sickness and accidents Homeowners Insurance - Correct Answer Provides Protection when people's homes and/or belongings are damaged or stolen and liability coverage for situations such as the family dog biting a guest Personal Auto - Correct Answer If the insured is at fault in an accident, provides coverage for bodily injury to another person, or damage to another person's auto. Also provides coverage for damage to the insured's auto (not wear and tear). Typically legally required Personal Umbrella - Correct Answer Provides additional protection for people with a high potential for large liability losses Commercial Property - Correct Answer Covers damage to buildings or their contents that result from fire, vandalism, and other causes of loss Commercial Crime - Correct Answer Protects against losses from theft of business personal property and money, including employee theft