AINS 101 EXAM SCRIPT FINAL PAPER 2026
COMPLETE QUESTIONS AND ANSWERS
◉ Johann is an insurance company employee who investigates the
scene of a loss and meets with insureds, claimants, lawyers, Johann
is most accurately called
A. A claims supervisor.
B. An adjusting agent.
C. An independent adjuster.
D. A field claims representative.
Answer: A field claims representative
◉ Work on a new claim begins for claim representative Anita upon
receipt of a claim notice. Anita gathers initial information and
verifies coverage. From the list of activities below, the next step
Anita would take in the process is
A. Assign the claim to defense counsel.
B. Set a loss reserve.
C. Make an offer to settle the claim.
D. Retain causation experts.
,Answer: Set a loss reserve. (After the claim representative receives
notice of a loss, obtains initial information, and verifies coverage, a
loss reserve for that claim should be established.)
◉ Understanding the steps in the claims handling process is
important to new claims reps. Which one of the following steps
generally comes after investigating and documenting the claim and
before concluding the claim?
A. Acknowledging a claim
B. Determining cause of loss and loss amount
C. Identifying the policy
D. Contacting the insured
Answer: Determining cause of loss and loss amount. (Between the
two steps of investigating and documenting the claim and
concluding the claim is the step of determining cause of loss and loss
amount.)
◉ A person or entity that would suffer a financial loss if property
were damaged has
A. A contractual interest.
B. A discretionary interest.
C. An insurable interest.
,D. A renewable interest.
Answer: An insurable interest. (A person or entity that would suffer
a financial loss if property were damaged has an insurable interest.)
◉ Subrogation is the insurer's right to
A. Estimate the value of the damaged property.
B. Transfer coverage to a third party.
C. Drop a claim in exchange for an agreed amount of money.
D. Recover its claim payment from the responsible party.
Answer: Recover its claim payment from the responsible party.
(Subrogation is the insurer's right to recover its claim payment from
the responsible party.)
◉ Compensatory damages represent
A. Out-of-pocket expenses.
B. Damages to deter others from committing wrongful acts.
C. Actual harm suffered.
D. Non-economic loss.
Answer: Actual harm suffered. (Compensatory damages represent
actual harm suffered.)
, ◉ Damages for disfigurement are a form of
A. General damages.
B. Punitive damages.
C. Out-of-pocket damages.
D. Special damages.
Answer: General damages. (Damages for disfigurement are a form of
general damages.)
◉ Reggie, Harper, Kimmie, and Stefan work in the claims
department of North Insurance Company (NIC). Which one of the
following is true regarding the various types of claims personnel
employed at NIC?
A. Harper is a specialized claims representative who works for a
small local insurance organization.
B. Stefan, a claims supervisor, reviews files and helps determine staff
development strategies.
C. Kimmie enjoys her role as a telephone claims representative
whose specialty is in-person meetings.
D. Reggie, a field claims representative, works in NIC's main office
and likes having an indoor desk job.
COMPLETE QUESTIONS AND ANSWERS
◉ Johann is an insurance company employee who investigates the
scene of a loss and meets with insureds, claimants, lawyers, Johann
is most accurately called
A. A claims supervisor.
B. An adjusting agent.
C. An independent adjuster.
D. A field claims representative.
Answer: A field claims representative
◉ Work on a new claim begins for claim representative Anita upon
receipt of a claim notice. Anita gathers initial information and
verifies coverage. From the list of activities below, the next step
Anita would take in the process is
A. Assign the claim to defense counsel.
B. Set a loss reserve.
C. Make an offer to settle the claim.
D. Retain causation experts.
,Answer: Set a loss reserve. (After the claim representative receives
notice of a loss, obtains initial information, and verifies coverage, a
loss reserve for that claim should be established.)
◉ Understanding the steps in the claims handling process is
important to new claims reps. Which one of the following steps
generally comes after investigating and documenting the claim and
before concluding the claim?
A. Acknowledging a claim
B. Determining cause of loss and loss amount
C. Identifying the policy
D. Contacting the insured
Answer: Determining cause of loss and loss amount. (Between the
two steps of investigating and documenting the claim and
concluding the claim is the step of determining cause of loss and loss
amount.)
◉ A person or entity that would suffer a financial loss if property
were damaged has
A. A contractual interest.
B. A discretionary interest.
C. An insurable interest.
,D. A renewable interest.
Answer: An insurable interest. (A person or entity that would suffer
a financial loss if property were damaged has an insurable interest.)
◉ Subrogation is the insurer's right to
A. Estimate the value of the damaged property.
B. Transfer coverage to a third party.
C. Drop a claim in exchange for an agreed amount of money.
D. Recover its claim payment from the responsible party.
Answer: Recover its claim payment from the responsible party.
(Subrogation is the insurer's right to recover its claim payment from
the responsible party.)
◉ Compensatory damages represent
A. Out-of-pocket expenses.
B. Damages to deter others from committing wrongful acts.
C. Actual harm suffered.
D. Non-economic loss.
Answer: Actual harm suffered. (Compensatory damages represent
actual harm suffered.)
, ◉ Damages for disfigurement are a form of
A. General damages.
B. Punitive damages.
C. Out-of-pocket damages.
D. Special damages.
Answer: General damages. (Damages for disfigurement are a form of
general damages.)
◉ Reggie, Harper, Kimmie, and Stefan work in the claims
department of North Insurance Company (NIC). Which one of the
following is true regarding the various types of claims personnel
employed at NIC?
A. Harper is a specialized claims representative who works for a
small local insurance organization.
B. Stefan, a claims supervisor, reviews files and helps determine staff
development strategies.
C. Kimmie enjoys her role as a telephone claims representative
whose specialty is in-person meetings.
D. Reggie, a field claims representative, works in NIC's main office
and likes having an indoor desk job.
