AINS 101 - Course Quiz Latest Update 2024-2025 Questions and Verified Correct Answers Guaranteed A+
A homeowners policy is a type of - CORRECT ANSWER: Personal property-casualty
insurance policy.
Adhering to the characteristics of an ideally insurable loss exposure in selling insurance
help assure that - CORRECT ANSWER: The insurer is able to charge a premium that
the insured can afford to pay
Adjuster Toni is evaluating damages in a bodily injury liability claim where she has determined that the insured is completely at fault for the accident. The claimant suffered a sprain and strain injury to his neck. His special damages total $1,500. He was out of work for a week, was disabled and prevented from performing some regular activities for a month, and attended physical therapy for six weeks. In assessing general
damages, Toni should - CORRECT ANSWER: Use past cases which are similar as a
guide
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
After Marvin's car was stolen, and he was reimbursed for the loss by Greatson Insurance, the police found and returned the vehicle, which was dented and spray- painted, but still had parts that could be usable. Greatson's rights to recover and sell or otherwise dispose of insured property on which it has paid a total loss are called -
CORRECT ANSWER: Salvage rights
Aimee recently accepted a job in the Underwriting department at Noble Insurance Company. Her responsibilities will include developing coverage forms, arranging reinsurance agreements, and conducting underwriting audits. Which one of the following is the title of Aimee's new job? - CORRECT ANSWER: Corporate Underwriter
Alicia works for the Drewman Agency, Sandi at insurer Greenway Insurance, and Rosa at Grossman Brokers, all as customer service representatives. Which one of the following is true regarding their work? - CORRECT ANSWER: Alicia can process policy endorsements and explain coverage to her customers
An insurance policy is considered a contract of adhesion when it is drafted by the -
CORRECT ANSWER: Insurer
An insurer that was formed for the purpose of earning a profit for its stockholders is a -
CORRECT ANSWER: Stock insurer
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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.
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.
As an experienced underwriter, Rick has learned to make every effort to avoid a mistake that can produce insufficient premium to cover losses, or pricing that isn't competitive. Which one of the following underwriting mistakes can often cause these
issues? - CORRECT ANSWER: Misclassifying exposures
As it continues to grow, Anchoy Insurance is examining other distribution channels to more effectively market its products. Through this experience, which of one the
following will Anchoy most likely learn? - CORRECT ANSWER: Anchoy can use group
marketing to target large numbers of recent local college graduates
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
Bob is shopping for auto insurance. Insurance Company A's rating system determines that Bob should be charged $800 per auto. If Bob is looking to insure four autos, what
premium will he be charged by Insurance Company A? - CORRECT ANSWER: $3,200
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
Clare is a commercial lines underwriter. She always tries to follow underwriting guidelines, effectively evaluate loss exposures, and charge adequate premiums. By
doing these things, Clare's goal is to ensure - CORRECT ANSWER: Adequate
policyholders' surplus
Compensatory damages represent - CORRECT ANSWER: Actual harm suffered
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