1|Page
AINS 101 Exam 2026/2027 ||Verified Exam!!|| Most
Recent Exam Actual Complete Real Exam Questions
And Correct Answers (Verified Answers) Already
Graded A+ | Guaranteed Success | Newest Exam!!!
Insurance Company wrote a commercial liability policy for
a manufacturer of off-road motorcycles. The potential
costs of the insured's loss exposure exceed Insurance
Company's capacity. Insurance Company could consider
which one of the following types of contractual transferring
agreement to meet its needs? - Answer-Reinsurance
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
,2|Page
reduced the time it takes to issue a policy. ABC Insurance
Company's use of computers to evaluate applications
electronically is an application of
A. Radiant sensors.
B. Artificial intelligence.
C. - Answer-Artificial intelligence.
Jimmy decided to buy a house in his neighborhood that
had been foreclosed on by the bank that held the
mortgage. He is hoping to do some renovation and repair
work on the house, and then sell it for a quick profit. What
type of risk is this? - Answer-Speculative Risk
Which one of the following best describes the concept of
pooling?
A. The financial consequences of unanticipated losses are
transferred to an insurer.
B. Risk management is concerned with positive and
negative risks.
C. Insureds share the cost of each other's losses.
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D. Insurance benefits society as a whole. - Answer-
Insureds share the cost of each other's losses.
Which one of the following represents uncertainty about
outcomes that can be negative or positive?
A. Loss exposure
B. Transfer
C. Risk
D. Pooling - Answer-Risk
Coverage for money and other business property from
various causes of loss such as burglary, robbery, theft, and
employee dishonesty typically is provided by - Answer-
Commercial crime insurance.
The insurance agent suggested that Sally's Snack Shop
buy a policy that combines property, crime, and liability
coverages into one policy. This is referred to as a(n) -
Answer-Commercial Package Policy (CCP)
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Which one of the following describes the characteristics of
a mutual insurance company?
A. A corporation owned by policyholders that provides
insurance to its policyholders.
B. An unincorporated association that provides reciprocal
coverage to subscribers.
C. An unincorporated association that earns profits for its
individual investors.
D. A corporation owned by stockholders that earns profits
for the stockholders. - Answer-A corporation owned by
policyholders that provides insurance to its policyholders.
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?
A. Ciara needs her car to get to her job, and she needs
her job to make car payments and pay for her car
insurance.
B. When her car's windshield breaks, Ciara has to pay
only $100 of the $600 cost of replacing it.
AINS 101 Exam 2026/2027 ||Verified Exam!!|| Most
Recent Exam Actual Complete Real Exam Questions
And Correct Answers (Verified Answers) Already
Graded A+ | Guaranteed Success | Newest Exam!!!
Insurance Company wrote a commercial liability policy for
a manufacturer of off-road motorcycles. The potential
costs of the insured's loss exposure exceed Insurance
Company's capacity. Insurance Company could consider
which one of the following types of contractual transferring
agreement to meet its needs? - Answer-Reinsurance
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
,2|Page
reduced the time it takes to issue a policy. ABC Insurance
Company's use of computers to evaluate applications
electronically is an application of
A. Radiant sensors.
B. Artificial intelligence.
C. - Answer-Artificial intelligence.
Jimmy decided to buy a house in his neighborhood that
had been foreclosed on by the bank that held the
mortgage. He is hoping to do some renovation and repair
work on the house, and then sell it for a quick profit. What
type of risk is this? - Answer-Speculative Risk
Which one of the following best describes the concept of
pooling?
A. The financial consequences of unanticipated losses are
transferred to an insurer.
B. Risk management is concerned with positive and
negative risks.
C. Insureds share the cost of each other's losses.
,3|Page
D. Insurance benefits society as a whole. - Answer-
Insureds share the cost of each other's losses.
Which one of the following represents uncertainty about
outcomes that can be negative or positive?
A. Loss exposure
B. Transfer
C. Risk
D. Pooling - Answer-Risk
Coverage for money and other business property from
various causes of loss such as burglary, robbery, theft, and
employee dishonesty typically is provided by - Answer-
Commercial crime insurance.
The insurance agent suggested that Sally's Snack Shop
buy a policy that combines property, crime, and liability
coverages into one policy. This is referred to as a(n) -
Answer-Commercial Package Policy (CCP)
, 4|Page
Which one of the following describes the characteristics of
a mutual insurance company?
A. A corporation owned by policyholders that provides
insurance to its policyholders.
B. An unincorporated association that provides reciprocal
coverage to subscribers.
C. An unincorporated association that earns profits for its
individual investors.
D. A corporation owned by stockholders that earns profits
for the stockholders. - Answer-A corporation owned by
policyholders that provides insurance to its policyholders.
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?
A. Ciara needs her car to get to her job, and she needs
her job to make car payments and pay for her car
insurance.
B. When her car's windshield breaks, Ciara has to pay
only $100 of the $600 cost of replacing it.
