AINS 21 Segment A | 70 Questions with 100 % correct answers | Verified& Updated 2024 | Already Passed

AINS 21 Segment A | 70 Questions with 100 % correct answers | Verified& Updated 2024 | Already Passed Though premiums are an obvious cost of insurance, many insureds believe they are too high because - Benefits are intangible until a loss occurs. Pravalt Construction Company pays less than its competitors for workers compensation insurance because Pravalt has had substantially fewer employee injuries than other firms in its class. This illustrates which one of the following benefits of insurance? - Promote risk control Which one of the following statements is correct regarding the benefits that insurance provides? - Investment income helps keep insurance premiums at a reasonable level. 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? - When her car's windshield breaks, Ciara has to pay only $100 of the $600 cost of replacing it. The primary role of insurance is to - Indemnify individuals and organizations for covered losses. Insurance is not the only risk management transfer technique. When circumstances are appropriate, transfer can be accomplished through - Noninsurance transfer techniques. Retention is often used in combination with insurance as a way of treating loss exposures. One of the major downsides of individuals using retention alone is - The potential for financial ruin. Harry has a new sports car that is insured with an Insurance Services Office, Inc. (ISO) Personal Auto Policy sold through his neighborhood agent. Because this is the first new car he's ever owned, Harry is interested in making sure he is fully covered and knowledgeable about his insurance policy. Which one of the following is true for Harry? - An insurance contract, like the ISO policy Harry purchased, has certain additional characteristics other than those of typical valid contracts. Sally is a recent college graduate who lives in the suburbs and drives to work daily in the city. She recognizes that owning a car creates both property damage and liability exposures for her and at the same time she has the burden of student loans. For someone in Sally's circumstances the most practical risk management technique for dealing with her auto-related loss exposures is - Risk transfer.