AINS 101 - Course Quiz
The primary role of insurance is to - correct answer Indemnify individuals and organizations for
covered losses.
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? - correct answer
When her car's windshield breaks, Ciara has to pay only $100 of the $600 cost of replacing it.
A homeowners policy is a type of - correct answer Personal property-casualty insurance policy.
Coverage for money and other business property from various causes of loss such as burglary,
robbery, theft, and employee dishonesty typically is provided by - correct answer Commercial
crime insurance.
Which one of the following describes the characteristics of a mutual insurance company? -
correct answer A corporation owned by policyholders that provides insurance to its
policyholders.
An insurer that was formed for the purpose of earning a profit for its stockholders is a - correct
answer Stock insurer
Autonomous Vehicle Applications (AVA) is a start-up company that develops safety technologies
that can be sold to companies that are producing autonomous vehicles. One technology AVA is
developing allows an autonomous vehicle to detect, extract, and analyze images; and then to
respond to the images. For example, the technology would detect a presence in a crosswalk,
extract the image, and a computer would analyze the image. When the image was determined
to be a human being, the vehicle would slow down or stop until the crosswalk was clear. This
technology, which is designed to capture and analyze images, and to act on the recognition of
the image; is called - correct answer Computer vision
, AINS 101 - Course Quiz
In an effort to reduce expenses, increase profitability, and reduce human errors; ABC Insurance
Company decided to automate most of its personal lines underwriting function. The company
now uses standardized application forms that are submitted electronically to one of the
company's regional offices. At each regional office, a computer with a scanner reads the
applications. The computer has been programmed with acceptable answers to the questions. If
the answers on the application are all acceptable, the policy is automatically issued. Rejected
applications are automatically forwarded to a human underwriter who reviews them. The use of
this technology has reduced the company's expense ratio by two and a half percent, and
reduced the time it takes to issue a policy. ABC Insurance Company's use of computers to
evaluate applications electronically is an application of - correct answer Artificial intelligence
Carlos is new to the insurance business and is learning about insurance regulation and what he,
now working with Grady Insurance, will need to be aware of regarding the subject of
compliance. Which one of the following will Carlos find is accurate as he better understands
why insurance is regulated? - correct answer Insurance regulation protects customers by
guaranteeing insurance is available and accessible to everyone who needs it
One of the reasons for insurance regulation is to prevent destructive competition. In which one
of the following scenarios would destructive competition be exhibited? - correct answer East
Insurance comes up with a new rate structure allowing "preferred customers" discounted
policies when they continually renew year after year; East eventually loses needed revenue but
is rewarded by its competitors leaving the market.
What term refers to the ability of an insurer to meet its obligations as they become due? -
correct answer Solvency
An insurer's financial statement shows a loss reserve and an unearned premium reserve. These
reserves are part of the insurer's - correct answer Total liabilities.
Admitted assets are types of property that regulators allow insurers to show as assets on their
financial statements because they are - correct answer Easily converted to cash
The primary role of insurance is to - correct answer Indemnify individuals and organizations for
covered losses.
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? - correct answer
When her car's windshield breaks, Ciara has to pay only $100 of the $600 cost of replacing it.
A homeowners policy is a type of - correct answer Personal property-casualty insurance policy.
Coverage for money and other business property from various causes of loss such as burglary,
robbery, theft, and employee dishonesty typically is provided by - correct answer Commercial
crime insurance.
Which one of the following describes the characteristics of a mutual insurance company? -
correct answer A corporation owned by policyholders that provides insurance to its
policyholders.
An insurer that was formed for the purpose of earning a profit for its stockholders is a - correct
answer Stock insurer
Autonomous Vehicle Applications (AVA) is a start-up company that develops safety technologies
that can be sold to companies that are producing autonomous vehicles. One technology AVA is
developing allows an autonomous vehicle to detect, extract, and analyze images; and then to
respond to the images. For example, the technology would detect a presence in a crosswalk,
extract the image, and a computer would analyze the image. When the image was determined
to be a human being, the vehicle would slow down or stop until the crosswalk was clear. This
technology, which is designed to capture and analyze images, and to act on the recognition of
the image; is called - correct answer Computer vision
, AINS 101 - Course Quiz
In an effort to reduce expenses, increase profitability, and reduce human errors; ABC Insurance
Company decided to automate most of its personal lines underwriting function. The company
now uses standardized application forms that are submitted electronically to one of the
company's regional offices. At each regional office, a computer with a scanner reads the
applications. The computer has been programmed with acceptable answers to the questions. If
the answers on the application are all acceptable, the policy is automatically issued. Rejected
applications are automatically forwarded to a human underwriter who reviews them. The use of
this technology has reduced the company's expense ratio by two and a half percent, and
reduced the time it takes to issue a policy. ABC Insurance Company's use of computers to
evaluate applications electronically is an application of - correct answer Artificial intelligence
Carlos is new to the insurance business and is learning about insurance regulation and what he,
now working with Grady Insurance, will need to be aware of regarding the subject of
compliance. Which one of the following will Carlos find is accurate as he better understands
why insurance is regulated? - correct answer Insurance regulation protects customers by
guaranteeing insurance is available and accessible to everyone who needs it
One of the reasons for insurance regulation is to prevent destructive competition. In which one
of the following scenarios would destructive competition be exhibited? - correct answer East
Insurance comes up with a new rate structure allowing "preferred customers" discounted
policies when they continually renew year after year; East eventually loses needed revenue but
is rewarded by its competitors leaving the market.
What term refers to the ability of an insurer to meet its obligations as they become due? -
correct answer Solvency
An insurer's financial statement shows a loss reserve and an unearned premium reserve. These
reserves are part of the insurer's - correct answer Total liabilities.
Admitted assets are types of property that regulators allow insurers to show as assets on their
financial statements because they are - correct answer Easily converted to cash
