AINS 101 EXAM QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS)
|ALREADY GRADED A+
Risk control can assist the claims department by - ans -Providing laboratory
analyses.
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? - ans -$2,000
Earned premiums are the portion of written premium that - ans -Apply to the part
of the policy period that has already occurred
Donna is an insurance producer. She makes an appointment with a potential
policyholder to review the prospect's loss exposures. She asks the prospect to
complete a questionnaire to assist her in this effort. Donna is conducting a - ans -
Risk management review
Winston is skimming through his new personal auto policy that just arrived.
Winston discovers that every insurance policy is represented through a collection
of policy provisions. He discovers all of the following policy provisions, EXCEPT: -
ans -Exceptions.
A policy provision typically consists of conditions, definitions, declarations,
insuring agreement, and the exclusions.
Which one of the following is the amount of business an insurer can write based
on regulatory guidelines, usually a comparison of the insurer's written premiums
to the policyholder's surplus? - ans -Capacity
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 - ans -Direct
writer marketing system
, All of the following are sources of underwriting information to evaluate an
insurance submission, EXCEPT: - ans -Underwriting authority reports
Which one of these is most directly associated with a satisfied customer? - ans -
Leads and referrals that can be used to generate new business
The two main sectors of the insurance industry are - ans -Property-casualty
insurance and life-health insurance.
Joe and Helene are married with two teenage children and two dogs. They own
three cars and a large house with a swimming pool in the back yard. Their
insurance agent advised them that the pool, teenage drivers, and dogs put them
at risk for large liability losses. Which one of the following personal property-
casualty insurance policies would provide them with protection for their high
potential for large liability losses? - ans -Personal Umbrella
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 - ans -
Contract of adhesion
Which two of the four quadrants of risk are classified as pure risk? - ans -Hazard
risks and operational risks
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: - ans -Support producers and insureds
The processing of almost every claim involves which one of the following
activities? - ans -Determining the amount of damages or extent of loss
The financial report for Hometown Insurer contains the following information:
Earned premiums$4,000,000
Written premiums$5,000,000
Net investment income$1,000,000
Incurred losses$3,000,000
Incurred underwriting expenses$2,000,000
DETAILED ANSWERS (VERIFIED ANSWERS)
|ALREADY GRADED A+
Risk control can assist the claims department by - ans -Providing laboratory
analyses.
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? - ans -$2,000
Earned premiums are the portion of written premium that - ans -Apply to the part
of the policy period that has already occurred
Donna is an insurance producer. She makes an appointment with a potential
policyholder to review the prospect's loss exposures. She asks the prospect to
complete a questionnaire to assist her in this effort. Donna is conducting a - ans -
Risk management review
Winston is skimming through his new personal auto policy that just arrived.
Winston discovers that every insurance policy is represented through a collection
of policy provisions. He discovers all of the following policy provisions, EXCEPT: -
ans -Exceptions.
A policy provision typically consists of conditions, definitions, declarations,
insuring agreement, and the exclusions.
Which one of the following is the amount of business an insurer can write based
on regulatory guidelines, usually a comparison of the insurer's written premiums
to the policyholder's surplus? - ans -Capacity
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 - ans -Direct
writer marketing system
, All of the following are sources of underwriting information to evaluate an
insurance submission, EXCEPT: - ans -Underwriting authority reports
Which one of these is most directly associated with a satisfied customer? - ans -
Leads and referrals that can be used to generate new business
The two main sectors of the insurance industry are - ans -Property-casualty
insurance and life-health insurance.
Joe and Helene are married with two teenage children and two dogs. They own
three cars and a large house with a swimming pool in the back yard. Their
insurance agent advised them that the pool, teenage drivers, and dogs put them
at risk for large liability losses. Which one of the following personal property-
casualty insurance policies would provide them with protection for their high
potential for large liability losses? - ans -Personal Umbrella
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 - ans -
Contract of adhesion
Which two of the four quadrants of risk are classified as pure risk? - ans -Hazard
risks and operational risks
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: - ans -Support producers and insureds
The processing of almost every claim involves which one of the following
activities? - ans -Determining the amount of damages or extent of loss
The financial report for Hometown Insurer contains the following information:
Earned premiums$4,000,000
Written premiums$5,000,000
Net investment income$1,000,000
Incurred losses$3,000,000
Incurred underwriting expenses$2,000,000
