AINS 101 | 112 QUESTION WITH 100 %
CORRECT ANSWERS | VERIFIED
Which of the following is an example of a legal requirement for individuals that
could be met through insurance?
a. contributing to the growth of the organization
b. paying for losses
c. obtaining personal auto insurance
d. providing a source of investment funds - ✔✔ANSWER✔✔-c. obtaining
personal auto insurance
A fire destroys the kitchen in Rob and Laurie's home. Which insurance policy
would provide coverage for the damage?
a. Homeowners Policy (Personal Liability)
b. Homeowners Policy (Property)
c. Personal Umbrella Policy
d. Personal Auto Policy - ✔✔ANSWER✔✔-b. Homeowners Policy (Property)
Which insurance policy could protect Rob and Laurie's sandwich shop against
losses from employee theft?
a. Workers Compensation
b. Commercial Crime
,c. Commercial Property
d. Commercial General Liability
e. Commercial Auto - ✔✔ANSWER✔✔-b. Commercial Crime
The best indication of an insurer's overall financial health is the -
✔✔ANSWER✔✔-policyholders surplus (It shows how much cash an insurer has
on hand for emergencies, unexpected losses, and expansion of business)
Combined ratio = - ✔✔ANSWER✔✔-loss ratio + expense ratio
expense ratio = - ✔✔ANSWER✔✔-incurred underwriting expenses / written
premiums
loss ratio = - ✔✔ANSWER✔✔-incurred losses (including loss adjustment
expenses) / earned premiums
Marco has been approved for a car insurance policy with a low premium
because on his application he gave an address in a low-crime area. However,
the actual address at which he lives and parks his car is in a high-crime area.
What is this an example of?
a. Growing capacity
b. Adverse selection
c. Creating surplus
d. Following underwriting guidelines - ✔✔ANSWER✔✔-b. Adverse selection
Emily is the underwriter for Marco's account. What is one way she could detect
and minimize instances of adverse selection such as this?
a. Increase auto policy premiums
,b. Ensure adequate policyholders' surplus
c. Monitor the book of business for unusual patterns of policy growth or losses
d. Alter the underwriting guidelines - ✔✔ANSWER✔✔-c. Monitor the book of
business for unusual patterns of policy growth or losses
These underwriters evaluate individual insurance applications and policy
renewals and manage their own books of business. In many ways, they are the
public face of the Underwriting Department - ✔✔ANSWER✔✔-field
underwriters
These underwriters make large-scale decisions about coverage, pricing, lines of
business, and the overall risk selection process - ✔✔ANSWER✔✔-corporate
underwriters
What do underwriters evaluate to determine the appropriate classification for
a commercial operation?
a. the insurer's book of business
b. specific characteristics of the insured's operation
c. the producer's years of experience on the job
d. policy holders' surplus - ✔✔ANSWER✔✔-b. specific characteristics of the
insured's operation
Exposure unit to the type of insurance it's typically used for:
Each vehicle - ✔✔ANSWER✔✔-auto
Exposure unit to the type of insurance it's typically used for:
Each $100 of insured value - ✔✔ANSWER✔✔-commercial property
, Exposure unit to the type of insurance it's typically used for:
Each $1,000 of gross sales - ✔✔ANSWER✔✔-general liability
Exposure unit to the type of insurance it's typically used for:
Each $1,000 of insured value - ✔✔ANSWER✔✔-homeowners
Exposure unit to the type of insurance it's typically used for:
Each $100 of payroll - ✔✔ANSWER✔✔-workers comp
Maria accidentally rear-ended Kenneth at a stop light. After the two made sure
they were both uninjured, they exchanged insurance information. Shortly
afterward, Kenneth called Maria's insurer and talked to Javier to report the
damages to his car.
______ is the claim's representative. - ✔✔ANSWER✔✔-Javier
Maria accidentally rear-ended Kenneth at a stop light. After the two made sure
they were both uninjured, they exchanged insurance information. Shortly
afterward, Kenneth called Maria's insurer and talked to Javier to report the
damages to his car.
_____ is the claimant. - ✔✔ANSWER✔✔-Kenneth
Belinda is a claims professional who works outside her organization's office.
She generally handles claims that require investigating the scene of a loss;
resolving complex investigative issues; and meeting with insureds, claimants,
lawyers, and others involved in a claim. What type of claims representative is
she?
a. Telephone claims representative
CORRECT ANSWERS | VERIFIED
Which of the following is an example of a legal requirement for individuals that
could be met through insurance?
a. contributing to the growth of the organization
b. paying for losses
c. obtaining personal auto insurance
d. providing a source of investment funds - ✔✔ANSWER✔✔-c. obtaining
personal auto insurance
A fire destroys the kitchen in Rob and Laurie's home. Which insurance policy
would provide coverage for the damage?
a. Homeowners Policy (Personal Liability)
b. Homeowners Policy (Property)
c. Personal Umbrella Policy
d. Personal Auto Policy - ✔✔ANSWER✔✔-b. Homeowners Policy (Property)
Which insurance policy could protect Rob and Laurie's sandwich shop against
losses from employee theft?
a. Workers Compensation
b. Commercial Crime
,c. Commercial Property
d. Commercial General Liability
e. Commercial Auto - ✔✔ANSWER✔✔-b. Commercial Crime
The best indication of an insurer's overall financial health is the -
✔✔ANSWER✔✔-policyholders surplus (It shows how much cash an insurer has
on hand for emergencies, unexpected losses, and expansion of business)
Combined ratio = - ✔✔ANSWER✔✔-loss ratio + expense ratio
expense ratio = - ✔✔ANSWER✔✔-incurred underwriting expenses / written
premiums
loss ratio = - ✔✔ANSWER✔✔-incurred losses (including loss adjustment
expenses) / earned premiums
Marco has been approved for a car insurance policy with a low premium
because on his application he gave an address in a low-crime area. However,
the actual address at which he lives and parks his car is in a high-crime area.
What is this an example of?
a. Growing capacity
b. Adverse selection
c. Creating surplus
d. Following underwriting guidelines - ✔✔ANSWER✔✔-b. Adverse selection
Emily is the underwriter for Marco's account. What is one way she could detect
and minimize instances of adverse selection such as this?
a. Increase auto policy premiums
,b. Ensure adequate policyholders' surplus
c. Monitor the book of business for unusual patterns of policy growth or losses
d. Alter the underwriting guidelines - ✔✔ANSWER✔✔-c. Monitor the book of
business for unusual patterns of policy growth or losses
These underwriters evaluate individual insurance applications and policy
renewals and manage their own books of business. In many ways, they are the
public face of the Underwriting Department - ✔✔ANSWER✔✔-field
underwriters
These underwriters make large-scale decisions about coverage, pricing, lines of
business, and the overall risk selection process - ✔✔ANSWER✔✔-corporate
underwriters
What do underwriters evaluate to determine the appropriate classification for
a commercial operation?
a. the insurer's book of business
b. specific characteristics of the insured's operation
c. the producer's years of experience on the job
d. policy holders' surplus - ✔✔ANSWER✔✔-b. specific characteristics of the
insured's operation
Exposure unit to the type of insurance it's typically used for:
Each vehicle - ✔✔ANSWER✔✔-auto
Exposure unit to the type of insurance it's typically used for:
Each $100 of insured value - ✔✔ANSWER✔✔-commercial property
, Exposure unit to the type of insurance it's typically used for:
Each $1,000 of gross sales - ✔✔ANSWER✔✔-general liability
Exposure unit to the type of insurance it's typically used for:
Each $1,000 of insured value - ✔✔ANSWER✔✔-homeowners
Exposure unit to the type of insurance it's typically used for:
Each $100 of payroll - ✔✔ANSWER✔✔-workers comp
Maria accidentally rear-ended Kenneth at a stop light. After the two made sure
they were both uninjured, they exchanged insurance information. Shortly
afterward, Kenneth called Maria's insurer and talked to Javier to report the
damages to his car.
______ is the claim's representative. - ✔✔ANSWER✔✔-Javier
Maria accidentally rear-ended Kenneth at a stop light. After the two made sure
they were both uninjured, they exchanged insurance information. Shortly
afterward, Kenneth called Maria's insurer and talked to Javier to report the
damages to his car.
_____ is the claimant. - ✔✔ANSWER✔✔-Kenneth
Belinda is a claims professional who works outside her organization's office.
She generally handles claims that require investigating the scene of a loss;
resolving complex investigative issues; and meeting with insureds, claimants,
lawyers, and others involved in a claim. What type of claims representative is
she?
a. Telephone claims representative
