AINS 101 EVALUATION TEST 2026 QUESTIONS AND
ANSWERS RATED A+
✔✔How are insurance premiums calculated? - ✔✔Insurance premiums are calculated
by multiplying the insurance rate by the number of exposure units.
✔✔Kevin is an underwriter in training. How would you describe an exposure unit to
Kevin? - ✔✔An exposure unit is a unit of measure (for example, area, gross receipts,
payroll, value insured) used to determine an insurance policy premium.
✔✔Crystal was late for work and ran a red light, accidentally rear-ending Martin. Both
were uninjured and exchanged insurance information. Martin then called Crystal's
insurer and reported his damages to Shawn. In this scenario, who is the claims
representative and who is the claimant? - ✔✔Shawn is the claims representative and
Martin is the claimant
✔✔Kyle would like to become a field claims representative. How would you describe the
related duties to him? - ✔✔Field claims representatives work outside of the office,
generally handling claims that require the scene of the loss to be investigated and
holding in-person meetings with insureds, claimants, lawyers, and any other people
involved with the claim.
✔✔Jill is responsible for the professional development of claims personnel. What role
does she play in the Claims Department? - ✔✔Claims manager
✔✔Mary is a claims representative. Ken, an insured, drove his car into a pond on his
property. What is the first step in the claims handling process that Mary should take? -
✔✔Acknowledging the claim
✔✔Mary has just searched the organization's database for the corresponding policy.
She determines that the loss occurred during Ken's policy period and that coverages in
,the policy apply to the loss and then calculates an appropriate loss reserve. What is the
next step she should complete? - ✔✔Contact the insured
✔✔What must Mary do immediately before concluding the claim? - ✔✔Determine the
cause of loss and loss amount
✔✔A claims representative should ask four questions when processing a property
insurance claim. Can you name them? - ✔✔The four questions claims representatives
should ask are: • Does the insured have an insurable interest in the property? • Is the
damaged property covered by the policy? • Is the cause of loss covered by the policy? •
Do any additional coverages, endorsements, or coverage limitations apply?
✔✔What valuation method involves reimbursing the insured for the cost of replacing the
property, minus depreciation? - ✔✔Actual cash value
✔✔What are the two types of damages awarded in legal liability cases? -
✔✔Compensatory and punitive (Compensatory damages reimburse a victim for actual
harm, and punitive damages are awarded to punish a defendant and deter others from
following their example)
✔✔When verifying whether coverage applies to a liability claim, what is the key
difference from a property claim? - ✔✔When verifying whether coverage applies to a
liability claim, the key difference from a property claim is that the claims representative
must determine whether the insured is legally responsible for the loss.
✔✔When Mariah was making a smoothie with her new electric blender, the handle
broke, slashing her with glass. She wound up needing several stitches on her right
hand, which caused her to miss a week of work. It turned out that the defect was
something the manufacturer knew about but decided would be too expensive to
redesign. What types of damages could Mariah receive if she sued the manufacturer? -
✔✔The types of damages Mariah could receive if she sued the manufacturer include
general damages for the pain she suffered, special damages to cover the cost of
receiving stitches, and punitive damages because the manufacturer knew about the
defect but chose not to correct it.
✔✔Matthew wants to become a producer. What are three activities a producer performs
(whether he or she works for an agency, a brokerage, or an insurer)? - ✔✔Sales, risk
management review, policy issuance, premium collection, customer service, claims
handling
✔✔Matthew asks you what is considered the most important function a producer can
perform. What would you tell him? - ✔✔Sales is the most important function a producer
can perform.
, ✔✔Which producer function can help lay the groundwork for sales while also
strengthening the producer/customer relationship? - ✔✔The risk management review
can help lay the groundwork for sales while also strengthening the producer/customer
relationship.
✔✔Name three ways a CSR can add value, in addition to selling products. - ✔✔In
addition to selling products, CSRs can add value in any of the following ways: •
Respond to general inquiries • Handle claim reporting • Answer billing inquiries •
Process policy endorsements • Review and explain quotes to customers • Explain
coverage
✔✔Can you name the steps of the risk consultation process in the correct order? -
✔✔The steps in the risk consultation process are:
• Establish standards of acceptable performance.
• Compare actual results with these standards.
• Correct substandard performance or revise standards.
• Evaluate substantially exceeded standards
✔✔Courtney runs a delivery service and chose to install rear-view cameras in all work
vehicles. What standard has Courtney focused on? - ✔✔Installing rear-view cameras in
all work vehicles is an example of an activity-based risk management standard
✔✔Mark wants to invest in the stock market. What kind of risk would he be taking? -
✔✔Speculative
✔✔Samantha and her manager review the six characteristics of an ideally insurable
loss exposure. Samantha determines that the exposure of flood possesses only three of
the six characteristics: pure risk, fortuitous losses, and definite and measurable. How
did Samantha determine that flood exposure is a pure risk? - ✔✔It cannot lead to a
positive outcome, no gain.
✔✔Samantha and her manger also came to the determination that the exposure of a
hurricane possesses fortuitous losses. How did they arrive at this determination? -
✔✔This is something out of their control
✔✔What principle prevents an insured from profiting from owning an insurance policy? -
✔✔Indemnity
✔✔Name three of the six distinguishing characteristics of insurance policies. - ✔✔An
insurance policy has all these characteristics:
• Contract of indemnity
• Contract of utmost good faith
• Contract involving fortuitous events and the exchange of unequal amounts
• Contract of adhesion
ANSWERS RATED A+
✔✔How are insurance premiums calculated? - ✔✔Insurance premiums are calculated
by multiplying the insurance rate by the number of exposure units.
✔✔Kevin is an underwriter in training. How would you describe an exposure unit to
Kevin? - ✔✔An exposure unit is a unit of measure (for example, area, gross receipts,
payroll, value insured) used to determine an insurance policy premium.
✔✔Crystal was late for work and ran a red light, accidentally rear-ending Martin. Both
were uninjured and exchanged insurance information. Martin then called Crystal's
insurer and reported his damages to Shawn. In this scenario, who is the claims
representative and who is the claimant? - ✔✔Shawn is the claims representative and
Martin is the claimant
✔✔Kyle would like to become a field claims representative. How would you describe the
related duties to him? - ✔✔Field claims representatives work outside of the office,
generally handling claims that require the scene of the loss to be investigated and
holding in-person meetings with insureds, claimants, lawyers, and any other people
involved with the claim.
✔✔Jill is responsible for the professional development of claims personnel. What role
does she play in the Claims Department? - ✔✔Claims manager
✔✔Mary is a claims representative. Ken, an insured, drove his car into a pond on his
property. What is the first step in the claims handling process that Mary should take? -
✔✔Acknowledging the claim
✔✔Mary has just searched the organization's database for the corresponding policy.
She determines that the loss occurred during Ken's policy period and that coverages in
,the policy apply to the loss and then calculates an appropriate loss reserve. What is the
next step she should complete? - ✔✔Contact the insured
✔✔What must Mary do immediately before concluding the claim? - ✔✔Determine the
cause of loss and loss amount
✔✔A claims representative should ask four questions when processing a property
insurance claim. Can you name them? - ✔✔The four questions claims representatives
should ask are: • Does the insured have an insurable interest in the property? • Is the
damaged property covered by the policy? • Is the cause of loss covered by the policy? •
Do any additional coverages, endorsements, or coverage limitations apply?
✔✔What valuation method involves reimbursing the insured for the cost of replacing the
property, minus depreciation? - ✔✔Actual cash value
✔✔What are the two types of damages awarded in legal liability cases? -
✔✔Compensatory and punitive (Compensatory damages reimburse a victim for actual
harm, and punitive damages are awarded to punish a defendant and deter others from
following their example)
✔✔When verifying whether coverage applies to a liability claim, what is the key
difference from a property claim? - ✔✔When verifying whether coverage applies to a
liability claim, the key difference from a property claim is that the claims representative
must determine whether the insured is legally responsible for the loss.
✔✔When Mariah was making a smoothie with her new electric blender, the handle
broke, slashing her with glass. She wound up needing several stitches on her right
hand, which caused her to miss a week of work. It turned out that the defect was
something the manufacturer knew about but decided would be too expensive to
redesign. What types of damages could Mariah receive if she sued the manufacturer? -
✔✔The types of damages Mariah could receive if she sued the manufacturer include
general damages for the pain she suffered, special damages to cover the cost of
receiving stitches, and punitive damages because the manufacturer knew about the
defect but chose not to correct it.
✔✔Matthew wants to become a producer. What are three activities a producer performs
(whether he or she works for an agency, a brokerage, or an insurer)? - ✔✔Sales, risk
management review, policy issuance, premium collection, customer service, claims
handling
✔✔Matthew asks you what is considered the most important function a producer can
perform. What would you tell him? - ✔✔Sales is the most important function a producer
can perform.
, ✔✔Which producer function can help lay the groundwork for sales while also
strengthening the producer/customer relationship? - ✔✔The risk management review
can help lay the groundwork for sales while also strengthening the producer/customer
relationship.
✔✔Name three ways a CSR can add value, in addition to selling products. - ✔✔In
addition to selling products, CSRs can add value in any of the following ways: •
Respond to general inquiries • Handle claim reporting • Answer billing inquiries •
Process policy endorsements • Review and explain quotes to customers • Explain
coverage
✔✔Can you name the steps of the risk consultation process in the correct order? -
✔✔The steps in the risk consultation process are:
• Establish standards of acceptable performance.
• Compare actual results with these standards.
• Correct substandard performance or revise standards.
• Evaluate substantially exceeded standards
✔✔Courtney runs a delivery service and chose to install rear-view cameras in all work
vehicles. What standard has Courtney focused on? - ✔✔Installing rear-view cameras in
all work vehicles is an example of an activity-based risk management standard
✔✔Mark wants to invest in the stock market. What kind of risk would he be taking? -
✔✔Speculative
✔✔Samantha and her manager review the six characteristics of an ideally insurable
loss exposure. Samantha determines that the exposure of flood possesses only three of
the six characteristics: pure risk, fortuitous losses, and definite and measurable. How
did Samantha determine that flood exposure is a pure risk? - ✔✔It cannot lead to a
positive outcome, no gain.
✔✔Samantha and her manger also came to the determination that the exposure of a
hurricane possesses fortuitous losses. How did they arrive at this determination? -
✔✔This is something out of their control
✔✔What principle prevents an insured from profiting from owning an insurance policy? -
✔✔Indemnity
✔✔Name three of the six distinguishing characteristics of insurance policies. - ✔✔An
insurance policy has all these characteristics:
• Contract of indemnity
• Contract of utmost good faith
• Contract involving fortuitous events and the exchange of unequal amounts
• Contract of adhesion
