AINS 101 legit exam simple to understand
with 11 pages
Bill is an insurance producer for and employed by ABC Insurance Company (ABC). He
represents only ABC when marketing insurance products, and uses an administrative
staff also employed by ABC. Bill is a producer in the - ANSWERSDirect writer marketing
system
Because the insurance company usually determines policy wording and the insured
has little choice but to "take it or leave it," an insurance contract is a -
ANSWERSContract of adhesion
Which one of the following best explains why producers should be alert to changes in
clients' loss exposures? - ANSWERSImplemented risk management techniques may
prove to be ineffective or become obsolete
At Greenfield Insurance Company, Bernadette and Rachel are corporate underwriters,
and Tomas and Jose are field underwriters. All of the following are underwriting
activities typically performed by corporate (or staff) underwriters like Bernadette and
Rachel, EXCEPT: - ANSWERSSupport producers and insureds
Joel is the underwriter for Stanton Industries. He received a notice from the premium
auditor on the account. After a recent visit to the insured's location, the auditor wanted
to make Joel aware of a decline in the business and some questionable business
practices. Which one of the following types of hazards is the auditor identifying? -
ANSWERSMoral hazards
Moral hazards - ANSWERSinclude questionable business practices or a failing
business.
James West is a claims rep with Hatters Insurance. As he learns how to handle a claim
from start to finish, which one of the following best describes the correct order for him to
follow during this process? - ANSWERSIdentifying the policy, calculating a loss reserve,
determining the cause of loss, preparing a loss statement
Margaret was severely injured and scarred due to a recent accident. Which one of the
following is an example of general damages Margaret received? -
ANSWERSCompensation for disfigurement
Donna is an insurance producer. She makes an appointment with potential policyholder
Sandie to review her loss exposures. She asks Sandie to complete a questionnaire to
assist her in this effort. Donna is conducting a - ANSWERSRisk management review
, Rachel is a new employee of Westley Insurance, and has been asked to review some
existing policies to become familiar with the types of policies she will be working with.
Which one of the following will Rachel find is true as she conducts her review? -
ANSWERSRachel finds the policy begins with a coverage overview and then goes into
more coverage details.
Sports, Inc. is looking to obtain a commercial property policy on its building for
$400,000. If their insurer decides to charge them a rate of $0.50 per $100 of building
insurance, what premium must Sports, Inc. pay? - ANSWERS$2,000
Destructive competition in the insurance industry could result in - ANSWERSInsurance
shortages
The financial report for Hometown Insurer contains the following information:
Earned premiums$4,000,000Written premiums$5,000,000Net investment
income$1,000,000Incurred losses$3,000,000Incurred underwriting expenses$2,000,000
What is Hometown Insurer's loss ratio? - ANSWERS75%
Loss Ratio - ANSWERSincurred losses divided by its earned premiums
Jessie is a new customer service representative (CSR) at the Winfield Agency. Jessie
usually engages in all the following activities, EXCEPT: - ANSWERSDetermining
coverage quotes
Riley Turner is performing a comprehensive evaluation of Hardwick Enterprises to
make sure its insurance and risk management efforts are serving the organization
appropriately. Which one of the following will be true in regard to this effort? -
ANSWERSBesides risk management goals being attainable, they should also pose a
challenge.
Rachel is considering investing in the stock of an insurance company. Which one of the
following is likely to provide the best indication of the insurer's financial position at this
point in time? - ANSWERSBalance sheet
Balance Sheet - ANSWERSprovides the best indication of its financial position because
it shows admitted assets, liabilities, and policyholders' surplus at a particular point in
time.
Which one of the following is the amount of business an insurer can write based on
regulatory guidelines, usually a comparsion of the insurer's written premiums to the
policyholders' surplus? - ANSWERSCapacity
The two main sectors of the insurance industry are - ANSWERSProperty-casualty
insurance and life-health insurance
with 11 pages
Bill is an insurance producer for and employed by ABC Insurance Company (ABC). He
represents only ABC when marketing insurance products, and uses an administrative
staff also employed by ABC. Bill is a producer in the - ANSWERSDirect writer marketing
system
Because the insurance company usually determines policy wording and the insured
has little choice but to "take it or leave it," an insurance contract is a -
ANSWERSContract of adhesion
Which one of the following best explains why producers should be alert to changes in
clients' loss exposures? - ANSWERSImplemented risk management techniques may
prove to be ineffective or become obsolete
At Greenfield Insurance Company, Bernadette and Rachel are corporate underwriters,
and Tomas and Jose are field underwriters. All of the following are underwriting
activities typically performed by corporate (or staff) underwriters like Bernadette and
Rachel, EXCEPT: - ANSWERSSupport producers and insureds
Joel is the underwriter for Stanton Industries. He received a notice from the premium
auditor on the account. After a recent visit to the insured's location, the auditor wanted
to make Joel aware of a decline in the business and some questionable business
practices. Which one of the following types of hazards is the auditor identifying? -
ANSWERSMoral hazards
Moral hazards - ANSWERSinclude questionable business practices or a failing
business.
James West is a claims rep with Hatters Insurance. As he learns how to handle a claim
from start to finish, which one of the following best describes the correct order for him to
follow during this process? - ANSWERSIdentifying the policy, calculating a loss reserve,
determining the cause of loss, preparing a loss statement
Margaret was severely injured and scarred due to a recent accident. Which one of the
following is an example of general damages Margaret received? -
ANSWERSCompensation for disfigurement
Donna is an insurance producer. She makes an appointment with potential policyholder
Sandie to review her loss exposures. She asks Sandie to complete a questionnaire to
assist her in this effort. Donna is conducting a - ANSWERSRisk management review
, Rachel is a new employee of Westley Insurance, and has been asked to review some
existing policies to become familiar with the types of policies she will be working with.
Which one of the following will Rachel find is true as she conducts her review? -
ANSWERSRachel finds the policy begins with a coverage overview and then goes into
more coverage details.
Sports, Inc. is looking to obtain a commercial property policy on its building for
$400,000. If their insurer decides to charge them a rate of $0.50 per $100 of building
insurance, what premium must Sports, Inc. pay? - ANSWERS$2,000
Destructive competition in the insurance industry could result in - ANSWERSInsurance
shortages
The financial report for Hometown Insurer contains the following information:
Earned premiums$4,000,000Written premiums$5,000,000Net investment
income$1,000,000Incurred losses$3,000,000Incurred underwriting expenses$2,000,000
What is Hometown Insurer's loss ratio? - ANSWERS75%
Loss Ratio - ANSWERSincurred losses divided by its earned premiums
Jessie is a new customer service representative (CSR) at the Winfield Agency. Jessie
usually engages in all the following activities, EXCEPT: - ANSWERSDetermining
coverage quotes
Riley Turner is performing a comprehensive evaluation of Hardwick Enterprises to
make sure its insurance and risk management efforts are serving the organization
appropriately. Which one of the following will be true in regard to this effort? -
ANSWERSBesides risk management goals being attainable, they should also pose a
challenge.
Rachel is considering investing in the stock of an insurance company. Which one of the
following is likely to provide the best indication of the insurer's financial position at this
point in time? - ANSWERSBalance sheet
Balance Sheet - ANSWERSprovides the best indication of its financial position because
it shows admitted assets, liabilities, and policyholders' surplus at a particular point in
time.
Which one of the following is the amount of business an insurer can write based on
regulatory guidelines, usually a comparsion of the insurer's written premiums to the
policyholders' surplus? - ANSWERSCapacity
The two main sectors of the insurance industry are - ANSWERSProperty-casualty
insurance and life-health insurance
