AINS 101|78 Questions with 100% Correct Answers | Verified | Updated 2024

Actual cash value (ACV) - ️️The cost to replace property with new property of like kind and quality less depreciation. Adverse selection - ️️Insuring 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. Binder - ️️A temporary written or oral agreement to provide insurance coverage until a formal written policy is issued. Book of business - ️️A group of policies with a common characteristic, such as territory or type of coverage, or all policies written by a particular insurer or agency. Broker - ️️An independent producer who represents insurance customers. Brokerage - ️️Compensation in the form of a flat fee or a commission that is paid by the reinsurer to the reinsurance intermediary for services provided. Capacity - ️️The amount of business an insurer is able to write, usually based on a comparison of the insurer's written premiums to its policyholders' surplus Catastrophe model - ️️A type of computer program that estimates losses from future potential catastrophic events. Certificate of insurance - ️️A brief description of insurance coverage prepared by an insurer or its agent and commonly used by policyholders to provide evidence of insurance.