AINS Practice Exam Review Questions With Complete
Solutions
"Other Structure" Correct Answers Covered by policy but under
separate policy limits
A fair approach to liability claims is to... Correct Answers
evaluate claims as though no coverage limit existed
A foreign insurer's license is renewed Correct Answers annually
A risk retention group can write insurance only for its members,
and it may write... Correct Answers only commercial liability
insurance
Account Current Basis Correct Answers Producer periodically
prepares a statement showing the premiums due to the insurer,
after deducting appropriate commissions, and transmits the
amount to the insurer. The agency contract will indicate how
often the producer must submit the account current statement
(usually monthly). Producer must pay when premium is due,
even if policyholder hasn't paid.
Acquisition Expenses = Correct Answers Sales salaries
(bonuses and commissions) + advertising expenses
ACV - Salvage Value Correct Answers Constructive Total Loss
or not
Agency Bill Correct Answers Payment procedure in which a
producer sends premium bills to the insured, collects the
, premium, and sends the premium to the insurer, less any
commission
Agency Expiration List Correct Answers An agency's most
valuable asset (does not belong to insurer)
Alien Insurer Correct Answers An insurer domiciled in a
country other than the US
Apparent Authority Correct Answers when an agent acts on
behalf of a principal in way that was not intended but that the
third party believes is sufficient
Broad statement of insurer's promises in a policy Correct
Answers Insuring Agreement
Case Reserve Correct Answers Loss reserve assigned to an
individual claim
CGL policies exclude... Correct Answers aircraft liability
coverage
Class Rating Correct Answers A rating approach that uses rates
reflecting the average probability of loss for businesses within
large groups of similar risks; the predominant method for
determining rate for commercial properties
Coinsurance Correct Answers Reduces amount of recovery if a
property is underinsured
Solutions
"Other Structure" Correct Answers Covered by policy but under
separate policy limits
A fair approach to liability claims is to... Correct Answers
evaluate claims as though no coverage limit existed
A foreign insurer's license is renewed Correct Answers annually
A risk retention group can write insurance only for its members,
and it may write... Correct Answers only commercial liability
insurance
Account Current Basis Correct Answers Producer periodically
prepares a statement showing the premiums due to the insurer,
after deducting appropriate commissions, and transmits the
amount to the insurer. The agency contract will indicate how
often the producer must submit the account current statement
(usually monthly). Producer must pay when premium is due,
even if policyholder hasn't paid.
Acquisition Expenses = Correct Answers Sales salaries
(bonuses and commissions) + advertising expenses
ACV - Salvage Value Correct Answers Constructive Total Loss
or not
Agency Bill Correct Answers Payment procedure in which a
producer sends premium bills to the insured, collects the
, premium, and sends the premium to the insurer, less any
commission
Agency Expiration List Correct Answers An agency's most
valuable asset (does not belong to insurer)
Alien Insurer Correct Answers An insurer domiciled in a
country other than the US
Apparent Authority Correct Answers when an agent acts on
behalf of a principal in way that was not intended but that the
third party believes is sufficient
Broad statement of insurer's promises in a policy Correct
Answers Insuring Agreement
Case Reserve Correct Answers Loss reserve assigned to an
individual claim
CGL policies exclude... Correct Answers aircraft liability
coverage
Class Rating Correct Answers A rating approach that uses rates
reflecting the average probability of loss for businesses within
large groups of similar risks; the predominant method for
determining rate for commercial properties
Coinsurance Correct Answers Reduces amount of recovery if a
property is underinsured
