2024 AINS 101 | 112 Question with
% correct answers | Verified 100
James West is a claims rep with Hatters Insurance. As he learns how to handle a claim from start to
finish, which one of the following best describes the correct order for him to follow during this process? -
CORRECT ANSWERS-Identifying the policy, calculating a loss reserve, determining the cause of loss,
preparing a loss statement
Margaret was severely injured and scarred due to a recent accident. Which one of the following is an
example of general damages Margaret received? - CORRECT ANSWERS-Compensation for disfigurement
Donna is an insurance producer. She makes an appointment with potential policyholder Sandie to review
her loss exposures. She asks Sandie to complete a questionnaire to assist her in this effort. Donna is
conducting a - CORRECT ANSWERS-Risk management review
Rachel is a new employee of Westley Insurance, and has been asked to review some existing policies to
become familiar with the types of policies she will be working with. Which one of the following will
Rachel find is true as she conducts her review? - CORRECT ANSWERS-Rachel finds the policy begins with
a coverage overview and then goes into more coverage details.
Sports, Inc. is looking to obtain a commercial property policy on its building for $400,000. If their insurer
decides to charge them a rate of $0.50 per $100 of building insurance, what premium must Sports, Inc.
pay? - CORRECT ANSWERS-$2,000
Destructive competition in the insurance industry could result in - CORRECT ANSWERS-Insurance
shortages
The financial report for Hometown Insurer contains the following information:
Earned premiums$4,000,000Written premiums$5,000,000Net investment income$1,000,000Incurred
losses$3,000,000Incurred underwriting expenses$2,000,000
What is Hometown Insurer's loss ratio? - CORRECT ANSWERS-75%
, Loss Ratio - CORRECT ANSWERS-incurred losses divided by its earned premiums
Jessie is a new customer service representative (CSR) at the Winfield Agency. Jessie usually engages in all
the following activities, EXCEPT: - CORRECT ANSWERS-Determining coverage quotes
Riley Turner is performing a comprehensive evaluation of Hardwick Enterprises to make sure its
insurance and risk management efforts are serving the organization appropriately. Which one of the
following will be true in regard to this effort? - CORRECT ANSWERS-Besides risk management goals being
attainable, they should also pose a challenge.
Rachel is considering investing in the stock of an insurance company. Which one of the following is likely
to provide the best indication of the insurer's financial position at this point in time? - CORRECT
ANSWERS-Balance sheet
Balance Sheet - CORRECT ANSWERS-provides the best indication of its financial position because it
shows admitted assets, liabilities, and policyholders' surplus at a particular point in time.
Which one of the following is the amount of business an insurer can write based on regulatory
guidelines, usually a comparsion of the insurer's written premiums to the policyholders' surplus? -
CORRECT ANSWERS-Capacity
The two main sectors of the insurance industry are - CORRECT ANSWERS-Property-casualty insurance
and life-health insurance
The difference between an independent agency and an exclusive agency is that an - CORRECT ANSWERS-
Exclusive agency is contracted to sell insurance for one insurer or group of insurers
A liability loss has the following damages:
Medical expenses:$10,000Damages for disfigurement:$50,000Damages for pain and suffering:$100,000
What is the amount of special damages? - CORRECT ANSWERS-$ 10,000
Special damages - CORRECT ANSWERS-specific, identifiable expenses
% correct answers | Verified 100
James West is a claims rep with Hatters Insurance. As he learns how to handle a claim from start to
finish, which one of the following best describes the correct order for him to follow during this process? -
CORRECT ANSWERS-Identifying the policy, calculating a loss reserve, determining the cause of loss,
preparing a loss statement
Margaret was severely injured and scarred due to a recent accident. Which one of the following is an
example of general damages Margaret received? - CORRECT ANSWERS-Compensation for disfigurement
Donna is an insurance producer. She makes an appointment with potential policyholder Sandie to review
her loss exposures. She asks Sandie to complete a questionnaire to assist her in this effort. Donna is
conducting a - CORRECT ANSWERS-Risk management review
Rachel is a new employee of Westley Insurance, and has been asked to review some existing policies to
become familiar with the types of policies she will be working with. Which one of the following will
Rachel find is true as she conducts her review? - CORRECT ANSWERS-Rachel finds the policy begins with
a coverage overview and then goes into more coverage details.
Sports, Inc. is looking to obtain a commercial property policy on its building for $400,000. If their insurer
decides to charge them a rate of $0.50 per $100 of building insurance, what premium must Sports, Inc.
pay? - CORRECT ANSWERS-$2,000
Destructive competition in the insurance industry could result in - CORRECT ANSWERS-Insurance
shortages
The financial report for Hometown Insurer contains the following information:
Earned premiums$4,000,000Written premiums$5,000,000Net investment income$1,000,000Incurred
losses$3,000,000Incurred underwriting expenses$2,000,000
What is Hometown Insurer's loss ratio? - CORRECT ANSWERS-75%
, Loss Ratio - CORRECT ANSWERS-incurred losses divided by its earned premiums
Jessie is a new customer service representative (CSR) at the Winfield Agency. Jessie usually engages in all
the following activities, EXCEPT: - CORRECT ANSWERS-Determining coverage quotes
Riley Turner is performing a comprehensive evaluation of Hardwick Enterprises to make sure its
insurance and risk management efforts are serving the organization appropriately. Which one of the
following will be true in regard to this effort? - CORRECT ANSWERS-Besides risk management goals being
attainable, they should also pose a challenge.
Rachel is considering investing in the stock of an insurance company. Which one of the following is likely
to provide the best indication of the insurer's financial position at this point in time? - CORRECT
ANSWERS-Balance sheet
Balance Sheet - CORRECT ANSWERS-provides the best indication of its financial position because it
shows admitted assets, liabilities, and policyholders' surplus at a particular point in time.
Which one of the following is the amount of business an insurer can write based on regulatory
guidelines, usually a comparsion of the insurer's written premiums to the policyholders' surplus? -
CORRECT ANSWERS-Capacity
The two main sectors of the insurance industry are - CORRECT ANSWERS-Property-casualty insurance
and life-health insurance
The difference between an independent agency and an exclusive agency is that an - CORRECT ANSWERS-
Exclusive agency is contracted to sell insurance for one insurer or group of insurers
A liability loss has the following damages:
Medical expenses:$10,000Damages for disfigurement:$50,000Damages for pain and suffering:$100,000
What is the amount of special damages? - CORRECT ANSWERS-$ 10,000
Special damages - CORRECT ANSWERS-specific, identifiable expenses
