AINS 101 SIMULATED EXAM COMPREHENSIVE
SCRIPT 2026 QUESTIONS AND ANSWERS
GUARANTEED TO PASS
◉ Lloyd's. Answer: The insurance and reinsurance marketplace
-"stock exchange"
◉ Captive Private Insurer. Answer: Formed to cover loss exposures
of specific organizations
◉ Government Programs. Answer: When private insurers are
unable/unwilling to satisfied legitimate needs:
1. Fill unmet insurance needs
2. Facilitate required insurance purchases
3. Promote efficiency and convivence
4. Achieve social goals
-can act as an insurer or partner with private insurers-
◉ Pure Risk. Answer: Beyond human control and can ONLY result in
a loss
,◉ Speculative Risk. Answer: Taken on voluntarily and can result
EITHER profit or loss
◉ Hazard Risk (Pure). Answer: Arises from property, liability, or
personnel
◉ Operational Risk (Pure). Answer: Arises from people, processes,
systems, or control
◉ Financial Risk (Speculative). Answer: Arises from effect of market
forces on financial assets or liabilities
◉ Strategic Risk (Speculative). Answer: Arises from trends in
economy and society
◉ Risk Management Technology. Answer: 1. Artificial Intelligence
(AI)
2. Sensors
3. Computer Vision
◉ Artificial Intelligence. Answer: Enables computers to perform
tasks that require critical thinking
, ◉ Sensors. Answer: Detect and measure objects, or conditions on a
continuous basis to warn of problems or malfunctions
◉ Computer Vision. Answer: Helps machine recognize an object and
respond to it as a human would
◉ Insurance Operations Regulation Principles. Answer: 1. Protect
Consumers
2. Maintain Insurer Solvency
3. Prevent Destructive Competition
◉ Protect Customers. Answer: -Verify policies truly benefit
customers
-Requiring insurers to pay legitimate claims and honest represent
benefits of a policy
-Guaranteeing insurance is a valuable and accessible to everyone
who needs it
◉ Maintain Insurer Solvency. Answer: -To prevent an insurer from
recklessly investing its profits or engaging in fraudulent activities
that could jeopardize its reserves
-Guarantee insurers have enough cash on hand to pay for future
claims made on all the policies it issues
SCRIPT 2026 QUESTIONS AND ANSWERS
GUARANTEED TO PASS
◉ Lloyd's. Answer: The insurance and reinsurance marketplace
-"stock exchange"
◉ Captive Private Insurer. Answer: Formed to cover loss exposures
of specific organizations
◉ Government Programs. Answer: When private insurers are
unable/unwilling to satisfied legitimate needs:
1. Fill unmet insurance needs
2. Facilitate required insurance purchases
3. Promote efficiency and convivence
4. Achieve social goals
-can act as an insurer or partner with private insurers-
◉ Pure Risk. Answer: Beyond human control and can ONLY result in
a loss
,◉ Speculative Risk. Answer: Taken on voluntarily and can result
EITHER profit or loss
◉ Hazard Risk (Pure). Answer: Arises from property, liability, or
personnel
◉ Operational Risk (Pure). Answer: Arises from people, processes,
systems, or control
◉ Financial Risk (Speculative). Answer: Arises from effect of market
forces on financial assets or liabilities
◉ Strategic Risk (Speculative). Answer: Arises from trends in
economy and society
◉ Risk Management Technology. Answer: 1. Artificial Intelligence
(AI)
2. Sensors
3. Computer Vision
◉ Artificial Intelligence. Answer: Enables computers to perform
tasks that require critical thinking
, ◉ Sensors. Answer: Detect and measure objects, or conditions on a
continuous basis to warn of problems or malfunctions
◉ Computer Vision. Answer: Helps machine recognize an object and
respond to it as a human would
◉ Insurance Operations Regulation Principles. Answer: 1. Protect
Consumers
2. Maintain Insurer Solvency
3. Prevent Destructive Competition
◉ Protect Customers. Answer: -Verify policies truly benefit
customers
-Requiring insurers to pay legitimate claims and honest represent
benefits of a policy
-Guaranteeing insurance is a valuable and accessible to everyone
who needs it
◉ Maintain Insurer Solvency. Answer: -To prevent an insurer from
recklessly investing its profits or engaging in fraudulent activities
that could jeopardize its reserves
-Guarantee insurers have enough cash on hand to pay for future
claims made on all the policies it issues
