AINS 101 EXAM WITH CORRECT
ANSWERS 2025
Which one of the following best explains why producers should be alert to
changes in clients' loss exposures?
A. Implemented risk management techniques may prove to be ineffective
or become
obsolete.
B.Knowledge of such changes will inform their efforts to create a list of
experts that can be called to assist.
C. Producers can aid clients in developing risk management cost allocation
plans.
D. Producers have expertise about risk financing through insurance. ( correct
answers
) A. Implemented risk management techniques may prove to be ineffective
or become obsolete.
The processing of almost every claim involves which one of the following
activities?
E. Engaging an accident scene reconstruction specialist
F. Determining the amount of damages or extent of loss
G. Subrogating
H.Salvaging ( correct answers ) B. Determining the
amount of damages or extent of loss
Maria is a new producer who wears many hats when forming relationships
and then serving her established customers. In this capacity, which one of
the following scenarios most accurately describes her ongoing work wearing
the hat of "claims handler"?
I.Customer Roland directly contacts Maria and she assumes full
responsibility for his claim as she was the first insurance employee to
receive the claims information.
J.Juanita directly contacts Maria who sold her a policy to adjust her
homeowners claim; Maria nicely explains she has no further responsibilities
after making the sale.
K.Alex directly contacts Maria after a hailstorm damages his new car the
day after he bought a policy from her, and she handles the claim as he is a
brand new customer.
L.Veronica directly contacts Maria for guidance on how to report a
stolen car, Maria provides that, and claims rep Sean takes over after an
introduction from Maria. (
correct answers ) D. Veronica directly contacts Maria for guidance on how
to report a stolen car, Maria provides that, and claims rep Sean takes over
after an introduction
from Maria.
Jessie is a new customer service representative (CSR) at the Winfield
Agency. Jessie usually engages in all the following activities, EXCEPT:
Select one:
M.Answering billing inquiries
N. Explaining coverage
O. Reporting new claims
, D. Determining coverage quotes ( correct answers ) D.
Determining coverage quotes
Michael is a commercial lines underwriter. He received a risk control report
on a new business that he had recently written with Laura, one of his
producers. After reviewing the report, Michael contacted Laura to let her
know that they needed to process a policy change request adding a new
classification and some exposures to the general liability policy. These
activities are occurring during which one of the following steps of the
underwriting process?
Select one:
A. Determine an appropriate premium
B. Issue required documents
C. Monitor the underwriting decision
D. Evaluate the application ( correct answers ) C. Monitor
the underwriting decision
Earned premiums are the portion of written
premiums that Select one:
A. Apply to the part of the policy period that has
already occurred.
B. Apply to the part of the policy period that
follows a loss.
C. Are billed at the beginning of the policy period.
D. Are available to generate investment income. ( correct
answers ) A. Apply to the part of the
policy period that has already occurred
Which one of the following is the correct formula for calculating an
insurer's combined ratio?
Select one:
A. Investment income ratio + premium income ratio
B. Investment income ratio + overall operating ratio
C. Loss ratio + underwriting ratio
D. Loss ratio + expense ratio ( correct answers ) D. Loss
ratio + expense ratio
Oscar's custom-built vehicle looks like a sausage sandwich on wheels. He
plans to drive it to special events at schools around the country where it will
serve as a mobile billboard to promote his product. Oscar is surprised to
learn that insurers are reluctant to insure his vehicle because it fails to meet
one of the ideal characteristics of an insurable risk. Which characteristic is
Oscar's vehicle least likely to meet?
Select one:
A. Definite and measurable
B. Independent and not catastrophic
C. Pure risk
D. Large number of similar exposure units ( correct
answers ) D. Large number of similar
exposure units
If an insured wants to receive "new for old" in the event of a property
loss, he or she would purchase
Select one:
A. Agreed value.
ANSWERS 2025
Which one of the following best explains why producers should be alert to
changes in clients' loss exposures?
A. Implemented risk management techniques may prove to be ineffective
or become
obsolete.
B.Knowledge of such changes will inform their efforts to create a list of
experts that can be called to assist.
C. Producers can aid clients in developing risk management cost allocation
plans.
D. Producers have expertise about risk financing through insurance. ( correct
answers
) A. Implemented risk management techniques may prove to be ineffective
or become obsolete.
The processing of almost every claim involves which one of the following
activities?
E. Engaging an accident scene reconstruction specialist
F. Determining the amount of damages or extent of loss
G. Subrogating
H.Salvaging ( correct answers ) B. Determining the
amount of damages or extent of loss
Maria is a new producer who wears many hats when forming relationships
and then serving her established customers. In this capacity, which one of
the following scenarios most accurately describes her ongoing work wearing
the hat of "claims handler"?
I.Customer Roland directly contacts Maria and she assumes full
responsibility for his claim as she was the first insurance employee to
receive the claims information.
J.Juanita directly contacts Maria who sold her a policy to adjust her
homeowners claim; Maria nicely explains she has no further responsibilities
after making the sale.
K.Alex directly contacts Maria after a hailstorm damages his new car the
day after he bought a policy from her, and she handles the claim as he is a
brand new customer.
L.Veronica directly contacts Maria for guidance on how to report a
stolen car, Maria provides that, and claims rep Sean takes over after an
introduction from Maria. (
correct answers ) D. Veronica directly contacts Maria for guidance on how
to report a stolen car, Maria provides that, and claims rep Sean takes over
after an introduction
from Maria.
Jessie is a new customer service representative (CSR) at the Winfield
Agency. Jessie usually engages in all the following activities, EXCEPT:
Select one:
M.Answering billing inquiries
N. Explaining coverage
O. Reporting new claims
, D. Determining coverage quotes ( correct answers ) D.
Determining coverage quotes
Michael is a commercial lines underwriter. He received a risk control report
on a new business that he had recently written with Laura, one of his
producers. After reviewing the report, Michael contacted Laura to let her
know that they needed to process a policy change request adding a new
classification and some exposures to the general liability policy. These
activities are occurring during which one of the following steps of the
underwriting process?
Select one:
A. Determine an appropriate premium
B. Issue required documents
C. Monitor the underwriting decision
D. Evaluate the application ( correct answers ) C. Monitor
the underwriting decision
Earned premiums are the portion of written
premiums that Select one:
A. Apply to the part of the policy period that has
already occurred.
B. Apply to the part of the policy period that
follows a loss.
C. Are billed at the beginning of the policy period.
D. Are available to generate investment income. ( correct
answers ) A. Apply to the part of the
policy period that has already occurred
Which one of the following is the correct formula for calculating an
insurer's combined ratio?
Select one:
A. Investment income ratio + premium income ratio
B. Investment income ratio + overall operating ratio
C. Loss ratio + underwriting ratio
D. Loss ratio + expense ratio ( correct answers ) D. Loss
ratio + expense ratio
Oscar's custom-built vehicle looks like a sausage sandwich on wheels. He
plans to drive it to special events at schools around the country where it will
serve as a mobile billboard to promote his product. Oscar is surprised to
learn that insurers are reluctant to insure his vehicle because it fails to meet
one of the ideal characteristics of an insurable risk. Which characteristic is
Oscar's vehicle least likely to meet?
Select one:
A. Definite and measurable
B. Independent and not catastrophic
C. Pure risk
D. Large number of similar exposure units ( correct
answers ) D. Large number of similar
exposure units
If an insured wants to receive "new for old" in the event of a property
loss, he or she would purchase
Select one:
A. Agreed value.
