AINS 101 SIMULATED EXAM
QUESTIONS WITH CORRECT DETAILED
ANSWERS; 100% GUARANTEED PASS
A liability loss has the following damages:
Medical expenses: $10,000
Damages for disfigurement: $50,000
Damages for pain and suffering: $100,000
What is the amount of special damages? - correct
answer- $10,000
A stock insurer differs from a reciprocal insurance
exchange in which one of the following ways? -
correct answer- Stockholders own a stock
insurer. Members own a reciprocal insurance exchange
All of the following are sources of underwriting
information to evaluate an insurance submission, EXCEPT:
- correct answer- Underwriting authority
reports
,Allian Insurance Company is a growing regional insurer
selling policies in three states, specializing in personal
auto and homeowners policies. Which one of the
following is most likely true regarding Allian and the
policies it sells? - correct answer- Allian issues
more preprinted policies than manuscript forms.
At Greenfield Insurance Company, Bernadette and Rachel
are corporate underwriters, and Tomas and Jose are field
underwriters. All of the following are underwriting
activities typically performed by corporate (or staff)
underwriters like Bernadette and Rachel, EXCEPT: -
correct answer- Support producers and insureds
Because insurance contracts impose an obligation for
ethical practices and behaviors on the parties while
dealing with one another, an insurance contract is called a
- correct answer- Contract of utmost good faith
Because the insurance company usually determines policy
wording and the insured has little choice but to "take it or
leave it," an insurance contract is a - correct
answer- Contract of adhesion
, Bill is an insurance producer for and employed by ABC
Insurance Company (ABC). He represents only ABC when
marketing insurance products, and uses an administrative
staff also employed by ABC. Bill is a producer in the -
correct answer- Direct writer marketing system
Destructive competition in the insurance industry could
result in - correct answer- Insurance shortages
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 answer- Risk
management review
Earned premiums are shown on an insurer's income
statement because they are - correct answer-
Revenues
QUESTIONS WITH CORRECT DETAILED
ANSWERS; 100% GUARANTEED PASS
A liability loss has the following damages:
Medical expenses: $10,000
Damages for disfigurement: $50,000
Damages for pain and suffering: $100,000
What is the amount of special damages? - correct
answer- $10,000
A stock insurer differs from a reciprocal insurance
exchange in which one of the following ways? -
correct answer- Stockholders own a stock
insurer. Members own a reciprocal insurance exchange
All of the following are sources of underwriting
information to evaluate an insurance submission, EXCEPT:
- correct answer- Underwriting authority
reports
,Allian Insurance Company is a growing regional insurer
selling policies in three states, specializing in personal
auto and homeowners policies. Which one of the
following is most likely true regarding Allian and the
policies it sells? - correct answer- Allian issues
more preprinted policies than manuscript forms.
At Greenfield Insurance Company, Bernadette and Rachel
are corporate underwriters, and Tomas and Jose are field
underwriters. All of the following are underwriting
activities typically performed by corporate (or staff)
underwriters like Bernadette and Rachel, EXCEPT: -
correct answer- Support producers and insureds
Because insurance contracts impose an obligation for
ethical practices and behaviors on the parties while
dealing with one another, an insurance contract is called a
- correct answer- Contract of utmost good faith
Because the insurance company usually determines policy
wording and the insured has little choice but to "take it or
leave it," an insurance contract is a - correct
answer- Contract of adhesion
, Bill is an insurance producer for and employed by ABC
Insurance Company (ABC). He represents only ABC when
marketing insurance products, and uses an administrative
staff also employed by ABC. Bill is a producer in the -
correct answer- Direct writer marketing system
Destructive competition in the insurance industry could
result in - correct answer- Insurance shortages
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 answer- Risk
management review
Earned premiums are shown on an insurer's income
statement because they are - correct answer-
Revenues
