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AINS 101 Practice Questions, 2025-
2026. Questions and Correct Answers.
Graded A
1. Not charging enough can lead to insolvency
2. Charging too low can be an attempt to drive out competition - ANS2
regulation reasons to prevent insurers from pricing policies too low:
Adequate policyholders' surplus - ANSClare is a commercial lines
underwriter. She always tries to follow underwriting guidelines, effectively
evaluate loss exposures, and charge adequate premiums. By doing these
things, Clare's goal is to ensure
Adverse Selection - ANSInsuring individuals with a high probability of loss
at a cost lower than the insurer would normally charge for that risk because
it wasn't aware of the actual risk involved is known as
Alicia can process policy endorsements and explain policy care. -
ANSAlicia works at a customer service representative at an agency, what
are some of her abilities here?
An insurer is using its own employees as producers. - ANSThe key to direct
writer marketing system is:
1
, 2
As many as they want. - ANSIndependent Agencies can work with how
many different insurers?
Balance Sheet - ANSWhich one of the following types of financial
statements shows the financial position of an insurance company at any
particular point in time?
Captive Insurance - ANSFormed to cover the loss exposures of specific
organizations.
Cash and short-term investments - ANSWhat is shown on the balance
sheet of an insurer?
Combined Ratio - ANSloss ratio + expense ratio
Commercial Package Policy (CPP) - ANSInsurance covering property,
crime, and liability is an example of what kind of policy?
Comparing an organizations results with established standards. - ANSCroft
industries is working with their producer Murphy. Brandon and the risk
managers completed the first step of the consultation process. What's
next?
Conditional contract - ANSInsurance policies are written in a way that the
parties have to perform only under certain conditions
2
AINS 101 Practice Questions, 2025-
2026. Questions and Correct Answers.
Graded A
1. Not charging enough can lead to insolvency
2. Charging too low can be an attempt to drive out competition - ANS2
regulation reasons to prevent insurers from pricing policies too low:
Adequate policyholders' surplus - ANSClare is a commercial lines
underwriter. She always tries to follow underwriting guidelines, effectively
evaluate loss exposures, and charge adequate premiums. By doing these
things, Clare's goal is to ensure
Adverse Selection - ANSInsuring individuals with a high probability of loss
at a cost lower than the insurer would normally charge for that risk because
it wasn't aware of the actual risk involved is known as
Alicia can process policy endorsements and explain policy care. -
ANSAlicia works at a customer service representative at an agency, what
are some of her abilities here?
An insurer is using its own employees as producers. - ANSThe key to direct
writer marketing system is:
1
, 2
As many as they want. - ANSIndependent Agencies can work with how
many different insurers?
Balance Sheet - ANSWhich one of the following types of financial
statements shows the financial position of an insurance company at any
particular point in time?
Captive Insurance - ANSFormed to cover the loss exposures of specific
organizations.
Cash and short-term investments - ANSWhat is shown on the balance
sheet of an insurer?
Combined Ratio - ANSloss ratio + expense ratio
Commercial Package Policy (CPP) - ANSInsurance covering property,
crime, and liability is an example of what kind of policy?
Comparing an organizations results with established standards. - ANSCroft
industries is working with their producer Murphy. Brandon and the risk
managers completed the first step of the consultation process. What's
next?
Conditional contract - ANSInsurance policies are written in a way that the
parties have to perform only under certain conditions
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