AINS 101 EXAMINATION TEST PAPER 2026
QUESTIONS WITH CORRECT ANSWERS
GRADED A+
● 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? Answer: $2,000
● Which one of the following is the correct formula for calculating an
insurer's combined ratio? Answer: Loss ratio + expense ratio
● Maria is a new producer who wears many hats when forming
relationships and then serving her established customers. In this
capacity, which one of the following scenarios most accurately describes
her ongoing work wearing the hat of "claims handler"? Answer:
Veronica directly contacts Maria for guidance on how to report a stolen
car, Maria provides that, and claims rep Sean takes over after an
introduction from Maria.
● 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? Answer: Besides risk management goals
being attainable, they should also pose a challenge.
● Erin has recently graduated from college and relocated to Chicago.
She has purchased a car and rented an apartment and now needs to
purchase insurance. Erin is looking for minimum coverages and the
lowest price available. Which one of the following is likely the best
distribution system to meet Erin's needs? Answer: Direct response
● Jennie recently purchased a personal auto policy from Westcox
Insurers. Three weeks later, Jennie reported her car was stolen from her
driveway during the middle of the day. Upon further investigation,
claims representative Harry finds out the home address he has on file for
Jennie does not match the location where the theft occurred. In light of
this scenario, which one of the following would be particularly helpful
for Harry to pursue concerning Jenny's claim? Answer: Harry can verify
Jennie's address and other possible helpful information by reviewing her
policy which has her original application information attached.
● If an insured wants to receive "new for old" in the event of a property
loss, he or she would purchase: Answer: Replacement cost
● 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?
Answer: Identifying the policy, calculating a loss reserve, determining
the cause of loss, preparing a loss statement
QUESTIONS WITH CORRECT ANSWERS
GRADED A+
● 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? Answer: $2,000
● Which one of the following is the correct formula for calculating an
insurer's combined ratio? Answer: Loss ratio + expense ratio
● Maria is a new producer who wears many hats when forming
relationships and then serving her established customers. In this
capacity, which one of the following scenarios most accurately describes
her ongoing work wearing the hat of "claims handler"? Answer:
Veronica directly contacts Maria for guidance on how to report a stolen
car, Maria provides that, and claims rep Sean takes over after an
introduction from Maria.
● 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? Answer: Besides risk management goals
being attainable, they should also pose a challenge.
● Erin has recently graduated from college and relocated to Chicago.
She has purchased a car and rented an apartment and now needs to
purchase insurance. Erin is looking for minimum coverages and the
lowest price available. Which one of the following is likely the best
distribution system to meet Erin's needs? Answer: Direct response
● Jennie recently purchased a personal auto policy from Westcox
Insurers. Three weeks later, Jennie reported her car was stolen from her
driveway during the middle of the day. Upon further investigation,
claims representative Harry finds out the home address he has on file for
Jennie does not match the location where the theft occurred. In light of
this scenario, which one of the following would be particularly helpful
for Harry to pursue concerning Jenny's claim? Answer: Harry can verify
Jennie's address and other possible helpful information by reviewing her
policy which has her original application information attached.
● If an insured wants to receive "new for old" in the event of a property
loss, he or she would purchase: Answer: Replacement cost
● 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?
Answer: Identifying the policy, calculating a loss reserve, determining
the cause of loss, preparing a loss statement
