AINS 102 BUNDLED EXAM FINAL EXAM 2026
COMPLETE QUESTIONS ANSWERS PREMIUM
STUDY GUIDE
◉ Knowledge acquired by the agent is presumed to be...
Answer: knowledge acquired by the insurer
◉ Premium collection method used for personal insurance and
small commercial accounts.
Answer: Direct Bill
◉ What specifies scope of authority of an agent?.
Answer: Agency contract
◉ Agency Bill.
Answer: Payment procedure in which a producer sends premium
bills to the insured, collects the premium, and sends the premium to
the insurer, less any commission
◉ Item Basis.
, Answer: Premium (less commission) is forwarded to the insurer
when the producer collects it or when it comes due. Least complex
method
◉ Statement Basis.
Answer: Insurer sends statement to the producer showing the
premiums due. Producer is obligated to pay the premiums as due.
◉ Account Current Basis.
Answer: Producer periodically prepares a statement showing the
premiums due to the insurer, after deducting appropriate
commissions, and transmits the amount to the insurer. The agency
contract will indicate how often the producer must submit the
account current statement (usually monthly). Producer must pay
when premium is due, even if policyholder hasn't paid.
◉ Purposes of underwriting.
Answer: Develop and maintain a book of business, guard against
adverse selection, ensure adequate policyholder's surplus and
enforce underwriting guidelines
◉ Experience Rating.
Answer: A rating plan that adjusts the premium for the current
policy period to recognize the loss experience of the insured
organization during past policy periods
COMPLETE QUESTIONS ANSWERS PREMIUM
STUDY GUIDE
◉ Knowledge acquired by the agent is presumed to be...
Answer: knowledge acquired by the insurer
◉ Premium collection method used for personal insurance and
small commercial accounts.
Answer: Direct Bill
◉ What specifies scope of authority of an agent?.
Answer: Agency contract
◉ Agency Bill.
Answer: Payment procedure in which a producer sends premium
bills to the insured, collects the premium, and sends the premium to
the insurer, less any commission
◉ Item Basis.
, Answer: Premium (less commission) is forwarded to the insurer
when the producer collects it or when it comes due. Least complex
method
◉ Statement Basis.
Answer: Insurer sends statement to the producer showing the
premiums due. Producer is obligated to pay the premiums as due.
◉ Account Current Basis.
Answer: Producer periodically prepares a statement showing the
premiums due to the insurer, after deducting appropriate
commissions, and transmits the amount to the insurer. The agency
contract will indicate how often the producer must submit the
account current statement (usually monthly). Producer must pay
when premium is due, even if policyholder hasn't paid.
◉ Purposes of underwriting.
Answer: Develop and maintain a book of business, guard against
adverse selection, ensure adequate policyholder's surplus and
enforce underwriting guidelines
◉ Experience Rating.
Answer: A rating plan that adjusts the premium for the current
policy period to recognize the loss experience of the insured
organization during past policy periods
