AINS 101 | 112 Question with 100 % correct answers
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Policyholders surplus - An insurer's assets minus its liabilities, which represents its net worth
Predictive modeling - A process in which historical data based on behaviors and events is blended with
multiple variables and used to construct models of anticipated future outcomes.
Premium - The price of the insurance coverage provided for a specified period.
Principle of indemnity - The principle that insurance policies should provide a benefit no greater than the
loss suffered by an insured.
Producer - Any of several kinds of insurance personnel who place insurance and surety business with
insurers and who represent either insurers or insureds, or both.
Property-casualty insurance - One of the two main sectors of the insurance industry, encompassing
numerous types of insurance, most of which cover the financial consequences of damage to one's own
property or legal liability to others
Punitive damages - A payment awarded by a court to punish a defendant for a reckless, malicious, or
deceitful act to deter similar conduct; the award need not bear any relation to a party's actual damages.
, 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.
Claim - A demand by a person or business seeking to recover from an insurer for a loss that may be
covered by an insurance policy.
Claimant - A party that makes a claim and that can be either a first-party claimant or a third-party
claimant.
Claims representative - A person responsible for investigating, evaluating, and settling claims.
Compensatory damages - A payment awarded by a court to reimburse a victim for actual harm.
Condition - Any provision in an insurance policy that qualifies an otherwise enforceable promise of the
insurer.
Conditional contract - A contract that one or more parties must perform only under certain conditions.
Contract of adhesion - Any contract in which one party must either accept the agreement as written by
the other party or reject it.
Verified
Policyholders surplus - An insurer's assets minus its liabilities, which represents its net worth
Predictive modeling - A process in which historical data based on behaviors and events is blended with
multiple variables and used to construct models of anticipated future outcomes.
Premium - The price of the insurance coverage provided for a specified period.
Principle of indemnity - The principle that insurance policies should provide a benefit no greater than the
loss suffered by an insured.
Producer - Any of several kinds of insurance personnel who place insurance and surety business with
insurers and who represent either insurers or insureds, or both.
Property-casualty insurance - One of the two main sectors of the insurance industry, encompassing
numerous types of insurance, most of which cover the financial consequences of damage to one's own
property or legal liability to others
Punitive damages - A payment awarded by a court to punish a defendant for a reckless, malicious, or
deceitful act to deter similar conduct; the award need not bear any relation to a party's actual damages.
, 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.
Claim - A demand by a person or business seeking to recover from an insurer for a loss that may be
covered by an insurance policy.
Claimant - A party that makes a claim and that can be either a first-party claimant or a third-party
claimant.
Claims representative - A person responsible for investigating, evaluating, and settling claims.
Compensatory damages - A payment awarded by a court to reimburse a victim for actual harm.
Condition - Any provision in an insurance policy that qualifies an otherwise enforceable promise of the
insurer.
Conditional contract - A contract that one or more parties must perform only under certain conditions.
Contract of adhesion - Any contract in which one party must either accept the agreement as written by
the other party or reject it.
