AINS 101 112 2026 CERTIFICATION EVALUATION
EXAMS COMPLETE QUESTIONS AND
ANSWERS
◉ Speculative risk.
Answer: a chance of loss, no loss, or gain
◉ Solvency.
Answer: the ability of an insurer to meet its financial obligations as
they become due, even those resulting from insured losses that may
be claimed several years in the future
◉ Income statement.
Answer: the financial statement that reports an organization's profit
or loss for a specific period by comparing the revenues generated
with the expenses incurred to produce those revenues
◉ Earned premiums.
Answer: the portion of the written premiums that apply to the part
of the policy period that has already occurred
◉ Underwriting income.
,Answer: income an insurer earns from premiums paid by
policyholders minus incurred losses and underwriting expenses
◉ Balance sheet.
Answer: the financial statement that reports the assets, liabilities,
and owner's equity of an organization as of a specific date
◉ Policyholder's surplus.
Answer: an insurer's assets minus its liabilities, which represents its
net worth
◉ Loss adjustment expenses.
Answer: the expense that an insurer incurs to investigate, defend,
and settle claims according to the terms specified in the insurance
policy
◉ Assets.
Answer: types of property, both tangible and intangible, owned by
an entity
◉ Liabilities.
Answer: financial obligations, or debts, owned by a company to
another entity usually the policyholder in the case of an insurer
, ◉ Investment income.
Answer: interest, dividends, and net capital gains received by an
insurer from the insurer's financial assets, minus its investment
expenses
◉ Loss reserve.
Answer: an estimate of the amount of money the insurer expects to
pay in the future for losses that have occurred
◉ Unearned premium reserve.
Answer: an insurer liability representing the amount of premiums
received from policyholders that are not yet earned
◉ Loss ratio.
Answer: a ratio that measures losses and loss adjustment expenses
against earned premiums and that reflects the percentage of
premiums being consumed by losses
◉ Expense ratio.
Answer: an insurer's incurred underwriting expenses for a given
period divided by its written premiums for the same period
◉ Combined ratio.
EXAMS COMPLETE QUESTIONS AND
ANSWERS
◉ Speculative risk.
Answer: a chance of loss, no loss, or gain
◉ Solvency.
Answer: the ability of an insurer to meet its financial obligations as
they become due, even those resulting from insured losses that may
be claimed several years in the future
◉ Income statement.
Answer: the financial statement that reports an organization's profit
or loss for a specific period by comparing the revenues generated
with the expenses incurred to produce those revenues
◉ Earned premiums.
Answer: the portion of the written premiums that apply to the part
of the policy period that has already occurred
◉ Underwriting income.
,Answer: income an insurer earns from premiums paid by
policyholders minus incurred losses and underwriting expenses
◉ Balance sheet.
Answer: the financial statement that reports the assets, liabilities,
and owner's equity of an organization as of a specific date
◉ Policyholder's surplus.
Answer: an insurer's assets minus its liabilities, which represents its
net worth
◉ Loss adjustment expenses.
Answer: the expense that an insurer incurs to investigate, defend,
and settle claims according to the terms specified in the insurance
policy
◉ Assets.
Answer: types of property, both tangible and intangible, owned by
an entity
◉ Liabilities.
Answer: financial obligations, or debts, owned by a company to
another entity usually the policyholder in the case of an insurer
, ◉ Investment income.
Answer: interest, dividends, and net capital gains received by an
insurer from the insurer's financial assets, minus its investment
expenses
◉ Loss reserve.
Answer: an estimate of the amount of money the insurer expects to
pay in the future for losses that have occurred
◉ Unearned premium reserve.
Answer: an insurer liability representing the amount of premiums
received from policyholders that are not yet earned
◉ Loss ratio.
Answer: a ratio that measures losses and loss adjustment expenses
against earned premiums and that reflects the percentage of
premiums being consumed by losses
◉ Expense ratio.
Answer: an insurer's incurred underwriting expenses for a given
period divided by its written premiums for the same period
◉ Combined ratio.
