8/4/25, 9:28 PM AINS 101 Exam Prep Flashcards | Quizlet
AINS 101 Exam Prep
Save
Terms in this set (378)
https://quizlet.com/1063890397/ains-101-exam-prep-flash-cards/?new 1/65
,8/4/25, 9:28 PM AINS 101 Exam Prep Flashcards | Quizlet
As a single mother on a When her car's windshield breaks, Ciara has to pay
very tight budget, Ciara is only $100 of the $600 cost of replacing it.
tempted to skimp on her
insurance. However, her
friend Mehmet tells her
not to skimp on insurance,
because it will help
manage her cash flows.
Which one of the
following examples best
illustrates Mehmet's point?
A. Ciara needs her car to
get to her job, and she
needs her job to make car
payments and pay for her
car insurance.
B. When her car's
windshield breaks, Ciara
has to pay only $100 of the
$600 cost of replacing it.
C. When her car's
transmission goes out a
month after the warranty
expires, Ciara is faced with
a $1,100 repair bill.
D. Ciara finds it difficult to
come up with a $787 auto
insurance premium every
six months.
https://quizlet.com/1063890397/ains-101-exam-prep-flash-cards/?new 2/65
,8/4/25, 9:28 PM AINS 101 Exam Prep Flashcards | Quizlet
Which one of the Insurance helps reduce the financial burden to society
following statements is by compensating accident victims.
correct regarding the
benefits provided by
insurance?
A. Insurance reduces the
financial consequences of
loss exposures but not the
related uncertainty.
B. The primary role of
insurance is to meet
mandatory insurance
requirements.
C. The reduction in losses
paid by insurers due to
risk control measures
benefits individual
insureds but not society as
a whole.
D. Insurance helps reduce
the financial burden to
society by compensating
accident victims.
https://quizlet.com/1063890397/ains-101-exam-prep-flash-cards/?new 3/65
, 8/4/25, 9:28 PM AINS 101 Exam Prep Flashcards | Quizlet
Shelton Industries Workers compensation insurance
experienced a fire in its
manufacturing plant.
Several employees
suffered burns and smoke
inhalation injuries as they
tried to escape the
building. Which one of
Shelton Industries'
commercial property-
casualty policies would
pay for the employees'
injuries and illnesses?
A homeowners policy is a Personal property-casualty insurance policy.
type of
https://quizlet.com/1063890397/ains-101-exam-prep-flash-cards/?new 4/65
AINS 101 Exam Prep
Save
Terms in this set (378)
https://quizlet.com/1063890397/ains-101-exam-prep-flash-cards/?new 1/65
,8/4/25, 9:28 PM AINS 101 Exam Prep Flashcards | Quizlet
As a single mother on a When her car's windshield breaks, Ciara has to pay
very tight budget, Ciara is only $100 of the $600 cost of replacing it.
tempted to skimp on her
insurance. However, her
friend Mehmet tells her
not to skimp on insurance,
because it will help
manage her cash flows.
Which one of the
following examples best
illustrates Mehmet's point?
A. Ciara needs her car to
get to her job, and she
needs her job to make car
payments and pay for her
car insurance.
B. When her car's
windshield breaks, Ciara
has to pay only $100 of the
$600 cost of replacing it.
C. When her car's
transmission goes out a
month after the warranty
expires, Ciara is faced with
a $1,100 repair bill.
D. Ciara finds it difficult to
come up with a $787 auto
insurance premium every
six months.
https://quizlet.com/1063890397/ains-101-exam-prep-flash-cards/?new 2/65
,8/4/25, 9:28 PM AINS 101 Exam Prep Flashcards | Quizlet
Which one of the Insurance helps reduce the financial burden to society
following statements is by compensating accident victims.
correct regarding the
benefits provided by
insurance?
A. Insurance reduces the
financial consequences of
loss exposures but not the
related uncertainty.
B. The primary role of
insurance is to meet
mandatory insurance
requirements.
C. The reduction in losses
paid by insurers due to
risk control measures
benefits individual
insureds but not society as
a whole.
D. Insurance helps reduce
the financial burden to
society by compensating
accident victims.
https://quizlet.com/1063890397/ains-101-exam-prep-flash-cards/?new 3/65
, 8/4/25, 9:28 PM AINS 101 Exam Prep Flashcards | Quizlet
Shelton Industries Workers compensation insurance
experienced a fire in its
manufacturing plant.
Several employees
suffered burns and smoke
inhalation injuries as they
tried to escape the
building. Which one of
Shelton Industries'
commercial property-
casualty policies would
pay for the employees'
injuries and illnesses?
A homeowners policy is a Personal property-casualty insurance policy.
type of
https://quizlet.com/1063890397/ains-101-exam-prep-flash-cards/?new 4/65
