AINS 101 Exam
Study online at https://quizlet.com/_hh58f5
1. Risk Uncertainty about outcomes. Can be negative or positive
2. Transferring The act of transferring the financial consequences of unanticipated events to an
insurer
3. Pooling All insureds share the costs of eachothers' losses. Insurers combine all premiums
collected to pay losses as they occur
4. Personal Insur- Protects an insured's assets by covering the cost of repairing or replacing property
ance (Property) that is damaged, lost, or destroyed.
5. Personal Insur- Provides payments for injury to others or damage to other's property for which the
ance (Liability) insured is legally responsible. Also covers the cost to defend the insured against
related lawsuits
6. Personal Insur- Protects individuals and families from financial losses caused by sickness or
ance (Health) accidents
7. Personal P&C In- Provides protection when people's homes and/or belongings are damaged or
surance (Home- stolen and liability coverage for situations such as the family dog biting a desk
owners)
8. Personal Auto In- If insured is at fault in an accident, provides coverage for personal bodily injury to
surance another person or damage to another person's auto. Also provides coverage for
damaged to insured auto (not wear + tear). Legally required
9. Personal Umbrel- Provides additional protection for people with a high potential for large liability
la Insurance losses
10. Commercial Covers damage to buildings or their contents that results from fire, vandalism, and
Property other causes of loss
Insurance
11.
, AINS 101 Exam
Study online at https://quizlet.com/_hh58f5
Commercial Protects against losses from theft of business property and money, including
Crime Insurance employee theft
12. Commercial Gen- Protects a business against its legal liability to others for bodily injury or property
eral Liability damage
13. Commercial Auto Covers liability for bodily injury and property damage caused by the use of the
Insurance businesses' autos and also damage to the business own autos when they are in
an accident
14. Workers Com- Covers legally required benefits that businesses are required to pay to their
pensation employees for job-related injuries and illnesses
15. Commercial Um- Provides additional liability limits beyond those provided by other commercial
brella Insurance policies, protecting a business in the event of large liability loss
16. Stock Insurers Objective is to earn a profit, and they attract stockholders by the expectation of
(Private Insurers) investment returns. Many large PC insurers are this.
17. Mutual Insurers Share profits, pay dividends to policyholders as a return of a portion of premiums
(Private Insurers) paid. Some large insurers and many regional insurers are this.
18. Surplus Lines In- Provide insurance coverages unavailable in the standard market
surers (Private
Insurers)
19. Reinsurance (Pri- Allows a primary insurer to transfer some loss exposures to another insurer, the
vate Insurers) reinsurer. It can help a small insurer provide insurance for large accounts.
20. What role does - If a type of insurance is required, the government makes sure it is available at a
the government reasonable price
play in insur- - Reduces time or resources needed to obtain insurance coverage
ance? - Can help find insurance for accounts that private insurers are unwilling or unable
to provide
Study online at https://quizlet.com/_hh58f5
1. Risk Uncertainty about outcomes. Can be negative or positive
2. Transferring The act of transferring the financial consequences of unanticipated events to an
insurer
3. Pooling All insureds share the costs of eachothers' losses. Insurers combine all premiums
collected to pay losses as they occur
4. Personal Insur- Protects an insured's assets by covering the cost of repairing or replacing property
ance (Property) that is damaged, lost, or destroyed.
5. Personal Insur- Provides payments for injury to others or damage to other's property for which the
ance (Liability) insured is legally responsible. Also covers the cost to defend the insured against
related lawsuits
6. Personal Insur- Protects individuals and families from financial losses caused by sickness or
ance (Health) accidents
7. Personal P&C In- Provides protection when people's homes and/or belongings are damaged or
surance (Home- stolen and liability coverage for situations such as the family dog biting a desk
owners)
8. Personal Auto In- If insured is at fault in an accident, provides coverage for personal bodily injury to
surance another person or damage to another person's auto. Also provides coverage for
damaged to insured auto (not wear + tear). Legally required
9. Personal Umbrel- Provides additional protection for people with a high potential for large liability
la Insurance losses
10. Commercial Covers damage to buildings or their contents that results from fire, vandalism, and
Property other causes of loss
Insurance
11.
, AINS 101 Exam
Study online at https://quizlet.com/_hh58f5
Commercial Protects against losses from theft of business property and money, including
Crime Insurance employee theft
12. Commercial Gen- Protects a business against its legal liability to others for bodily injury or property
eral Liability damage
13. Commercial Auto Covers liability for bodily injury and property damage caused by the use of the
Insurance businesses' autos and also damage to the business own autos when they are in
an accident
14. Workers Com- Covers legally required benefits that businesses are required to pay to their
pensation employees for job-related injuries and illnesses
15. Commercial Um- Provides additional liability limits beyond those provided by other commercial
brella Insurance policies, protecting a business in the event of large liability loss
16. Stock Insurers Objective is to earn a profit, and they attract stockholders by the expectation of
(Private Insurers) investment returns. Many large PC insurers are this.
17. Mutual Insurers Share profits, pay dividends to policyholders as a return of a portion of premiums
(Private Insurers) paid. Some large insurers and many regional insurers are this.
18. Surplus Lines In- Provide insurance coverages unavailable in the standard market
surers (Private
Insurers)
19. Reinsurance (Pri- Allows a primary insurer to transfer some loss exposures to another insurer, the
vate Insurers) reinsurer. It can help a small insurer provide insurance for large accounts.
20. What role does - If a type of insurance is required, the government makes sure it is available at a
the government reasonable price
play in insur- - Reduces time or resources needed to obtain insurance coverage
ance? - Can help find insurance for accounts that private insurers are unwilling or unable
to provide
