AINS 24 Questions and answers graded
A+ passed
B. Pricing coverages for each applicant - correct answer ✔✔Which one of the following items is
a responsibility of the underwriting management of an insurance company?
A. Reviewing renewals for eligibility
B. Pricing coverages for each applicant
C. Gathering underwriting information on each applicant
D. Arranging treaty reinsurance
C. Implied authority - correct answer ✔✔Marnie Smith is an independent insurance agent
representing IIA Casualty Company and others. When Sherman Parks asked Marnie for
homeowners insurance, she accepted his application and bound coverage in accordance with
the provisions in her agency contract with IIA. As an agent for IIA, Marnie is acting with
A. Vicarious authority.
B. Transient authority.
C. Implied authority.
D. Express authority.
D. A self-insurance plan. - correct answer ✔✔A reciprocal insurance exchange is an example of
A. A state insurance program.
B. A federal government insurance program.
C. A private insurer.
D. A self-insurance plan.
, A. Preventable through proper care. - correct answer ✔✔Wear and tear to property is
uninsurable because it is
A. Preventable through proper care.
B. Usually due to latent defects.
C. Difficult to value.
D. Certain to occur over time.
C. Installation of deadbolts on all exterior doors - correct answer ✔✔John's house has been
burglarized twice during the past six months. John has taken several steps to lower the chance
of another burglary. Which one of the following actions is best classified as a loss prevention
technique?
A. Keeping less cash in the house
B. Installation of a silent burglar alarm system
C. Installation of deadbolts on all exterior doors
D. Hiding valuable jewelry in the basement
C. $15,000 - correct answer ✔✔Steel, Inc. is looking to obtain workers compensation insurance.
The insurance company has given Steel, Inc. an insurance rating of $50 for every $1,000 of
payroll. If Steel, Inc.'s payroll is $300,000, what premium will it be charged?
A. $300
B. $6,000
C. $15,000
D. $30,000
A. Cover all causes of loss that are not specifically excluded. - correct answer ✔✔Special form
(open perils) policies
A. Cover all causes of loss that are not specifically excluded.
B. Place special emphasis on the rights of the insurer.
A+ passed
B. Pricing coverages for each applicant - correct answer ✔✔Which one of the following items is
a responsibility of the underwriting management of an insurance company?
A. Reviewing renewals for eligibility
B. Pricing coverages for each applicant
C. Gathering underwriting information on each applicant
D. Arranging treaty reinsurance
C. Implied authority - correct answer ✔✔Marnie Smith is an independent insurance agent
representing IIA Casualty Company and others. When Sherman Parks asked Marnie for
homeowners insurance, she accepted his application and bound coverage in accordance with
the provisions in her agency contract with IIA. As an agent for IIA, Marnie is acting with
A. Vicarious authority.
B. Transient authority.
C. Implied authority.
D. Express authority.
D. A self-insurance plan. - correct answer ✔✔A reciprocal insurance exchange is an example of
A. A state insurance program.
B. A federal government insurance program.
C. A private insurer.
D. A self-insurance plan.
, A. Preventable through proper care. - correct answer ✔✔Wear and tear to property is
uninsurable because it is
A. Preventable through proper care.
B. Usually due to latent defects.
C. Difficult to value.
D. Certain to occur over time.
C. Installation of deadbolts on all exterior doors - correct answer ✔✔John's house has been
burglarized twice during the past six months. John has taken several steps to lower the chance
of another burglary. Which one of the following actions is best classified as a loss prevention
technique?
A. Keeping less cash in the house
B. Installation of a silent burglar alarm system
C. Installation of deadbolts on all exterior doors
D. Hiding valuable jewelry in the basement
C. $15,000 - correct answer ✔✔Steel, Inc. is looking to obtain workers compensation insurance.
The insurance company has given Steel, Inc. an insurance rating of $50 for every $1,000 of
payroll. If Steel, Inc.'s payroll is $300,000, what premium will it be charged?
A. $300
B. $6,000
C. $15,000
D. $30,000
A. Cover all causes of loss that are not specifically excluded. - correct answer ✔✔Special form
(open perils) policies
A. Cover all causes of loss that are not specifically excluded.
B. Place special emphasis on the rights of the insurer.
