8/4/25, 9:25 PM AINS 21 practice exam Flashcards | Quizlet
AINS 21 practice exam
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Terms in this set (349)
when selecting a
distribution channel, which
one of the following is
important consideration
with regard to customer
needs and characteristics
Which of the following ideally, loss exposures should be spread across a
statements is correct large number of similar exposure units within the same
regarding characteristics period
of ideally insurable loss
exposures
The type of insurance that Disability income insurance
provides periodic income
payments to an insured
who is unable to work
because of sickness or
injury is
Retention is often used in The potential for financial ruin
combination with
insurance as a way of
treating loss exposures.
One of the major
downsides of individuals
using retention alone is
https://quizlet.com/1063889831/ains-21-practice-exam-flash-cards/?new 1/19
,8/4/25, 9:25 PM AINS 21 practice exam Flashcards | Quizlet
A loss exposure is Any condition that presents the possibility of a loss
Liability coverage for loss Commercial general liability insurance
exposures arising from a
business organizations
premises and operations,
its products, or its
completed work is
typically provided by
Though premiums are an Benefits are intangible until loss occurs
obvious cost of insurance,
many insureds believe that
are too high because
Insurance is not the only noninsurance transfer technique
risk management transfer
technique. When
circumstances are
appropriate, transfer can
be accomplished through
Which one of the An unknown vandal spray-paints graffiti on the
following is an example of insured's garage
a fortuitous loss
Which one of the Investment income helps keep insurance premiums at
following statements is a reasonable level
correct regarding the
benefits that insurance
provides
Claim buildup is increased losses
considered to be among
which one of the following
costs of insurance
The primary role of indemnify individuals and organizations for covered
insurance is to losses
https://quizlet.com/1063889831/ains-21-practice-exam-flash-cards/?new 2/19
, 8/4/25, 9:25 PM AINS 21 practice exam Flashcards | Quizlet
Coverage for money, commercial crime insurance
securities, and other
property from various
causes of loss such as
burglary, robbery, theft,
and employee dishonesty
typically is provided by
Which of the following is An insureds funds that could be invested elsewhere if
an opportunity cost of purchasing insurance were not necessary
insurance
Coverage for inland marine insurance
miscellaneous types of
property such as movable
property, goods in
domestic transit, and
property use in
transportation and
communication, typically
is provided by
For insurers to utilize independent
pooling most effectively
and prevent catastrophic
losses, the insured
exposure units need to be
Some loss exposures are transfer
not easy to retain, avoid,
or control. What risk
management techniques is
frequently used to treat
such exposures
Sometimes the existence increases the total cost of insurance
of insurance encourages
losses. the result of this
phenomenon is that in
https://quizlet.com/1063889831/ains-21-practice-exam-flash-cards/?new 3/19
AINS 21 practice exam
Save
Terms in this set (349)
when selecting a
distribution channel, which
one of the following is
important consideration
with regard to customer
needs and characteristics
Which of the following ideally, loss exposures should be spread across a
statements is correct large number of similar exposure units within the same
regarding characteristics period
of ideally insurable loss
exposures
The type of insurance that Disability income insurance
provides periodic income
payments to an insured
who is unable to work
because of sickness or
injury is
Retention is often used in The potential for financial ruin
combination with
insurance as a way of
treating loss exposures.
One of the major
downsides of individuals
using retention alone is
https://quizlet.com/1063889831/ains-21-practice-exam-flash-cards/?new 1/19
,8/4/25, 9:25 PM AINS 21 practice exam Flashcards | Quizlet
A loss exposure is Any condition that presents the possibility of a loss
Liability coverage for loss Commercial general liability insurance
exposures arising from a
business organizations
premises and operations,
its products, or its
completed work is
typically provided by
Though premiums are an Benefits are intangible until loss occurs
obvious cost of insurance,
many insureds believe that
are too high because
Insurance is not the only noninsurance transfer technique
risk management transfer
technique. When
circumstances are
appropriate, transfer can
be accomplished through
Which one of the An unknown vandal spray-paints graffiti on the
following is an example of insured's garage
a fortuitous loss
Which one of the Investment income helps keep insurance premiums at
following statements is a reasonable level
correct regarding the
benefits that insurance
provides
Claim buildup is increased losses
considered to be among
which one of the following
costs of insurance
The primary role of indemnify individuals and organizations for covered
insurance is to losses
https://quizlet.com/1063889831/ains-21-practice-exam-flash-cards/?new 2/19
, 8/4/25, 9:25 PM AINS 21 practice exam Flashcards | Quizlet
Coverage for money, commercial crime insurance
securities, and other
property from various
causes of loss such as
burglary, robbery, theft,
and employee dishonesty
typically is provided by
Which of the following is An insureds funds that could be invested elsewhere if
an opportunity cost of purchasing insurance were not necessary
insurance
Coverage for inland marine insurance
miscellaneous types of
property such as movable
property, goods in
domestic transit, and
property use in
transportation and
communication, typically
is provided by
For insurers to utilize independent
pooling most effectively
and prevent catastrophic
losses, the insured
exposure units need to be
Some loss exposures are transfer
not easy to retain, avoid,
or control. What risk
management techniques is
frequently used to treat
such exposures
Sometimes the existence increases the total cost of insurance
of insurance encourages
losses. the result of this
phenomenon is that in
https://quizlet.com/1063889831/ains-21-practice-exam-flash-cards/?new 3/19
