AINS 101 STIMULATED EXAM QUESTIONS
WITH 100% CORRECT ANSWERS;
VERIFIED; LATEST UPDATE 2026-2027
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?
Select one:
A. $ 10,000
,CorrectCorrect. The amount of special damages is
$10,000. Special damages are for specific, identifiable
expenses.
B. $ 50,000
C. $100,000
D. $160,000 - correct answer- A. $ 10,000
CorrectCorrect. The amount of special damages is
$10,000. Special damages are for specific, identifiable
expenses.
A stock insurer differs from a reciprocal insurance
exchange in which one of the following ways?
Select one:
A. A stock insurer provides insurance to its policyholder-
owners. A reciprocal insurance exchange provides
insurance to investors.
B. Both are formed to provide profit to investors.
However, the stock insurer is managed through a board of
directors.
,C. Stockholders own a stock insurer. Members own a
reciprocal insurance exchange.
CorrectCorrect. Stockholders own a stock insurer.
Members (subscribers) own a reciprocal insurance
exchange.
D. Both are owned by stockholders. However, the
reciprocal insurance exchange provides coverage to
investors. - correct answer- C. Stockholders
own a stock insurer. Members own a reciprocal insurance
exchange.
CorrectCorrect. Stockholders own a stock insurer.
Members (subscribers) own a reciprocal insurance
exchange.
All of the following are sources of underwriting
information to evaluate an insurance submission, EXCEPT:
Select one:
A. Inspection reports
B. Applications
C. Underwriting authority reports
, CorrectCorrect. All listed are sources of underwriting
information, EXCEPT underwriting authority reports.
D. Telematics - correct answer- C. Underwriting
authority reports
CorrectCorrect. All listed are sources of underwriting
information, EXCEPT 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?
Select one:
A. Customized coverages are usually issued through a self-
contained policy.
B. Allian issues more preprinted policies than manuscript
forms.
C. Allian offers modular policies for coverages common to
a large number of its insureds.
WITH 100% CORRECT ANSWERS;
VERIFIED; LATEST UPDATE 2026-2027
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?
Select one:
A. $ 10,000
,CorrectCorrect. The amount of special damages is
$10,000. Special damages are for specific, identifiable
expenses.
B. $ 50,000
C. $100,000
D. $160,000 - correct answer- A. $ 10,000
CorrectCorrect. The amount of special damages is
$10,000. Special damages are for specific, identifiable
expenses.
A stock insurer differs from a reciprocal insurance
exchange in which one of the following ways?
Select one:
A. A stock insurer provides insurance to its policyholder-
owners. A reciprocal insurance exchange provides
insurance to investors.
B. Both are formed to provide profit to investors.
However, the stock insurer is managed through a board of
directors.
,C. Stockholders own a stock insurer. Members own a
reciprocal insurance exchange.
CorrectCorrect. Stockholders own a stock insurer.
Members (subscribers) own a reciprocal insurance
exchange.
D. Both are owned by stockholders. However, the
reciprocal insurance exchange provides coverage to
investors. - correct answer- C. Stockholders
own a stock insurer. Members own a reciprocal insurance
exchange.
CorrectCorrect. Stockholders own a stock insurer.
Members (subscribers) own a reciprocal insurance
exchange.
All of the following are sources of underwriting
information to evaluate an insurance submission, EXCEPT:
Select one:
A. Inspection reports
B. Applications
C. Underwriting authority reports
, CorrectCorrect. All listed are sources of underwriting
information, EXCEPT underwriting authority reports.
D. Telematics - correct answer- C. Underwriting
authority reports
CorrectCorrect. All listed are sources of underwriting
information, EXCEPT 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?
Select one:
A. Customized coverages are usually issued through a self-
contained policy.
B. Allian issues more preprinted policies than manuscript
forms.
C. Allian offers modular policies for coverages common to
a large number of its insureds.
