AINS 101

1. Loss ratio - ANSWER A ratio that measures losses and loss adjustment expenses against earned premiums and that reflects the percentage of premiums being consumed by losses 2. Loss reserve - ANSWER An estimate of the amount of money the insurer expects to pay in the future for losses that have occurred. 3. Loss run - ANSWER A report detailing an insured's history of claims that have occurred over a specific period, valued as of a specific date 4. Mutual insurer - ANSWER ...

AINS 101 NEWEST COMPLETE 2025 QUESTION WITH 100 % CORRECT ANSWERS | VERIFIED

AINS 101 NEWEST COMPLETE 2025 QUESTION WITH 100 % CORRECT ANSWERS | VERIFIED

The primary role of insurance is to - ANSWER Indemnify individuals and organizations for covered losses. As a single mother on a very tight budget, Ciara is 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? - ANSWER When her car's windshield breaks, Ciara has to pay only $100 of the $600 cost of replacing it. A homeowners po...

Exclusive agency is contracted to sell insurance for one insurer or group of insurers - ANSWER The difference between an independent agency and an exclusive agency is that an Insurance shortages - ANSWER Destructive competition in the insurance industry could result in 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 - ANSWER Maria is a new producer who wears

Pooling - ANSWER insureds share the cost of each other's losses Mutual Insurer - ANSWER owned by policyholders and may pay dividends to policyholders as a return of a portion of premiums paid. Formed as a corporation for the purpose of providing insurance to them Stock Insurer - ANSWER An insurer that is owned by its stockholders and formed as a corporation for the purpose of earning a profit for the stockholders

As a single mother on a very tight budget, Ciara is 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...

Loss exposure - ANSWER any condition or situation that presents a possibility of loss, whether or not an actual loss occurs Premium - ANSWER the price of the insurance coverage provided for a specified period Indemnify - ANSWER to restore a party who has sustained a loss to the same financial position that party held before the loss occurred

Bill is an insurance producer for and employed by ABC Insurance Company (ABC). He represents only ABC when marketing insurance products, and uses an administrative staff also employed by ABC. Bill is a producer in the - ANSWER Direct writer marketing system Because the insurance company usually determines policy wording and the insured has little choice but to "take it or leave it," an insurance contract is a - ANSWER Contract of adhesion Which one of the following best explains why

Key Components of Insurance - ANSWER 1. Risk 2. Transfers 3. Pooling Risk - ANSWER Uncertainty about outcomes, that can be negative OR positive Transfers - ANSWER Risk of loss in the form of a policy that is given to another party