AINS 102 INSURANCE CERTIFICATION
EVALUATION COMPLETE STUDY SHEET
VERIFIED SOLUTIONS
●● Property Loss Exposure
Answer: Any condition that presents the possibility that a person will
sustain a loss resulting from damage to or theft of their property.
Can result in serious financial consequences
●● Individuals' and families' property loss exposures stem from
ownership of two main categories of property:
Answer: Real Property (realty)
Personal Property
●● Land, buildings, other structures attached to the land (swimming
pool, storage shed, flagpole), anything growing on the land (trees,
crops), and anything embedded in the land (foundations, underground
pipes, minerals)
Answer: Real Property
●● Dwelling contents (furniture, electronics), high-value property
(jewelry, silverware, firearms), rare or unique property (antiques,
,artwork), business personal property (supplies, machinery), intangible
property (patents, copyrights), motor vehicles, trailers, watercraft, and
aircraft.
Answer: Personal Property
●● Damaged or destroyed property can result in which of these
outcomes?
A. Reduction in property value—The difference between the value of
the property before the loss (pre-loss value) and after the loss (post-loss
value)
B. Increased expenses—Expenses in addition to normal living expenses
that are necessary because of the loss, such as the cost of renting a hotel
room following a house fire
C. Lost income—Loss of income that results when property is damaged
or destroyed, such as the loss of rent that can be collected on a property
that is damaged by a hurricane
D. All of the Above
Answer: D. All of the Above
●● All risk management techniques fall into one of two categories:
Answer: Risk Control
Risk Financing
,●● Risk Control Techniques
Answer: Reduce the frequency and/or severity of a particular loss or
make losses more predictable
●● Risk Financing Techniques
Answer: Generate the funds to pay for losses and risk control measures.
●● Risk Control Techniques fall into one of six broad categories:
Answer: Avoidance
Loss Prevention
Loss Reduction
Separation
Duplication
Diversification
●● Avoidance
Answer: Involves ceasing an activity or deciding not to engage in it, so
that the possibility of future loss from that activity is eliminated.
●● Loss Prevention
Answer: A technique that reduces the frequency of a particular loss. It's
used to break the sequence of events that lead to a loss.
, ●● Loss Reduction
Answer: A technique that reduces the severity of a particular loss.
●● Separation
Answer: Isolates loss exposures from one another to minimize the
adverse effect of a single loss.
●● Duplication
Answer: Involves creating backups, spares, or copies of property or
information.
●● Diversification
Answer: Spreads loss exposures over numerous areas or projects.
●● Risk Financing Techniques fall into two categories:
Answer: Retention
Transfer
●● Retention
Answer: Funds are generated or set aside to pay for losses that are
retained by the individual or family
●● Transfer
EVALUATION COMPLETE STUDY SHEET
VERIFIED SOLUTIONS
●● Property Loss Exposure
Answer: Any condition that presents the possibility that a person will
sustain a loss resulting from damage to or theft of their property.
Can result in serious financial consequences
●● Individuals' and families' property loss exposures stem from
ownership of two main categories of property:
Answer: Real Property (realty)
Personal Property
●● Land, buildings, other structures attached to the land (swimming
pool, storage shed, flagpole), anything growing on the land (trees,
crops), and anything embedded in the land (foundations, underground
pipes, minerals)
Answer: Real Property
●● Dwelling contents (furniture, electronics), high-value property
(jewelry, silverware, firearms), rare or unique property (antiques,
,artwork), business personal property (supplies, machinery), intangible
property (patents, copyrights), motor vehicles, trailers, watercraft, and
aircraft.
Answer: Personal Property
●● Damaged or destroyed property can result in which of these
outcomes?
A. Reduction in property value—The difference between the value of
the property before the loss (pre-loss value) and after the loss (post-loss
value)
B. Increased expenses—Expenses in addition to normal living expenses
that are necessary because of the loss, such as the cost of renting a hotel
room following a house fire
C. Lost income—Loss of income that results when property is damaged
or destroyed, such as the loss of rent that can be collected on a property
that is damaged by a hurricane
D. All of the Above
Answer: D. All of the Above
●● All risk management techniques fall into one of two categories:
Answer: Risk Control
Risk Financing
,●● Risk Control Techniques
Answer: Reduce the frequency and/or severity of a particular loss or
make losses more predictable
●● Risk Financing Techniques
Answer: Generate the funds to pay for losses and risk control measures.
●● Risk Control Techniques fall into one of six broad categories:
Answer: Avoidance
Loss Prevention
Loss Reduction
Separation
Duplication
Diversification
●● Avoidance
Answer: Involves ceasing an activity or deciding not to engage in it, so
that the possibility of future loss from that activity is eliminated.
●● Loss Prevention
Answer: A technique that reduces the frequency of a particular loss. It's
used to break the sequence of events that lead to a loss.
, ●● Loss Reduction
Answer: A technique that reduces the severity of a particular loss.
●● Separation
Answer: Isolates loss exposures from one another to minimize the
adverse effect of a single loss.
●● Duplication
Answer: Involves creating backups, spares, or copies of property or
information.
●● Diversification
Answer: Spreads loss exposures over numerous areas or projects.
●● Risk Financing Techniques fall into two categories:
Answer: Retention
Transfer
●● Retention
Answer: Funds are generated or set aside to pay for losses that are
retained by the individual or family
●● Transfer
