AINS 101 EXAM QUESTIONS WITH
CORRECT DETAILED ANSWERS
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
B. $ 50,000
C. $100,000
D. $160,000 - correct answer- A. $ 10,000
,A stock insurer differs from a reciprocal insurance
exchange in which one of the following ways?
Select one:
A. Stockholders own a stock insurer. Members own a
reciprocal insurance exchange.
B. Both are owned by stockholders. However, the
reciprocal insurance exchange provides coverage to
investors.
C. Both are formed to provide profit to investors.
However, the stock insurer is managed through a board of
directors.
D. A stock insurer provides insurance to its policyholder-
owners. A reciprocal insurance exchange provides
insurance to investors. - correct answer- A.
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:
Select one:
,A. Underwriting authority reports
B. Applications
C. Telematics
D. Inspection reports - correct answer- A.
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. The manuscript forms that Allian issues are developed
by ISO.
B. Allian offers modular policies for coverages common to
a large number of its insureds.
C. Customized coverages are usually issued through a self-
contained policy.
D. Allian issues more preprinted policies than manuscript
forms. - correct answer- D. 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:
Select one:
A. Conduct underwriting audits
B. Formulate underwriting policy
C. Research the market
D. Support producers and insureds - correct
answer- D. 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
Select one:
A. Contract of indemnity.
B. Conditional contract.
C. Contract of utmost good faith.
CORRECT DETAILED ANSWERS
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
B. $ 50,000
C. $100,000
D. $160,000 - correct answer- A. $ 10,000
,A stock insurer differs from a reciprocal insurance
exchange in which one of the following ways?
Select one:
A. Stockholders own a stock insurer. Members own a
reciprocal insurance exchange.
B. Both are owned by stockholders. However, the
reciprocal insurance exchange provides coverage to
investors.
C. Both are formed to provide profit to investors.
However, the stock insurer is managed through a board of
directors.
D. A stock insurer provides insurance to its policyholder-
owners. A reciprocal insurance exchange provides
insurance to investors. - correct answer- A.
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:
Select one:
,A. Underwriting authority reports
B. Applications
C. Telematics
D. Inspection reports - correct answer- A.
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. The manuscript forms that Allian issues are developed
by ISO.
B. Allian offers modular policies for coverages common to
a large number of its insureds.
C. Customized coverages are usually issued through a self-
contained policy.
D. Allian issues more preprinted policies than manuscript
forms. - correct answer- D. 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:
Select one:
A. Conduct underwriting audits
B. Formulate underwriting policy
C. Research the market
D. Support producers and insureds - correct
answer- D. 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
Select one:
A. Contract of indemnity.
B. Conditional contract.
C. Contract of utmost good faith.
