AINS 101 Simulated Exam Questions & Answers Latest Update
AINS 101 Simulated Exam Questions & Answers
Latest Update
Exclusive agency is contracted to sell insurance for one insurer or group of insurers -
✔✔✔-The difference between an independent agency and an exclusive agency is that an
Insurance shortages - ✔✔✔-Destructive competition in the insurance industry could
result in
Veronica directly contacts Maria for guidance on how to report a stolen car, Maria
provides that, and claims rep Sean takes over after an introduction from Maria - ✔✔✔-
Maria is a new producer who wears many hats when forming relationships and then
serving her established customers. In this capacity, which one of the following scenarios
most accurately describes her ongoing work wearing the hat of "claims handler"?
$350 Replacement cost - Depreciation - ✔✔✔-John's two-year-old bicycle was stolen.
The bicycle's purchase price was $700, its current replacement cost is $800, and
depreciation was estimated at $450. What was the bicycle's actual cash value?
Underwriting authority reports - ✔✔✔-All of the following are sources of underwriting
information to evaluate an insurance submission, EXCEPT:
Implemented risk management techniques may prove to be ineffective or become
obsolete - ✔✔✔-Which one of the following best explains why producers should be
alert to changes in clients' loss exposures?
Field Underwriter - ✔✔✔-James works very closely with producers on a daily basis. In
addition to evaluating the applicants that the producers submit, James is involved in
®™
, AINS 101 Simulated Exam Questions & Answers Latest Update
presenting policy quotations, processing policy endorsements, helping to explain
coverages, and making coverage recommendations. James works as a
Balance sheet - ✔✔✔-Rachel is considering investing in the stock of an insurance
company. Which one of the following is likely to provide the best indication of the
insurer's financial position at this point in time?
Support producers and insureds - ✔✔✔-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:
Large number of similar exposure units - ✔✔✔-Oscar's custom-built vehicle looks like a
sausage sandwich on wheels. He plans to drive it to special events at schools around the
country where it will serve as a mobile billboard to promote his product. Oscar is
surprised to learn that insurers are reluctant to insure his vehicle because it fails to meet
one of the ideal characteristics of an insurable risk. Which characteristic is Oscar's vehicle
least likely to meet?
Capacity - ✔✔✔-Which one of the following is the amount of business an insurer can
write based on regulatory guidelines, usually a comparsion of the insurer's written
premiums to the policyholders' surplus?
Mutual insurer - ✔✔✔-Joe is the owner of JG Auto Repair. He is always frustrated with
the amount of commercial insurance premium he pays every year, even though he has
not had a single claim in over 10 years. Joe is looking to partner with an insurance
company that will share its profits and maybe return a portion of his premium if the
results are good. Which one of the following types of insurer is the right fit for Joe?
®™
AINS 101 Simulated Exam Questions & Answers
Latest Update
Exclusive agency is contracted to sell insurance for one insurer or group of insurers -
✔✔✔-The difference between an independent agency and an exclusive agency is that an
Insurance shortages - ✔✔✔-Destructive competition in the insurance industry could
result in
Veronica directly contacts Maria for guidance on how to report a stolen car, Maria
provides that, and claims rep Sean takes over after an introduction from Maria - ✔✔✔-
Maria is a new producer who wears many hats when forming relationships and then
serving her established customers. In this capacity, which one of the following scenarios
most accurately describes her ongoing work wearing the hat of "claims handler"?
$350 Replacement cost - Depreciation - ✔✔✔-John's two-year-old bicycle was stolen.
The bicycle's purchase price was $700, its current replacement cost is $800, and
depreciation was estimated at $450. What was the bicycle's actual cash value?
Underwriting authority reports - ✔✔✔-All of the following are sources of underwriting
information to evaluate an insurance submission, EXCEPT:
Implemented risk management techniques may prove to be ineffective or become
obsolete - ✔✔✔-Which one of the following best explains why producers should be
alert to changes in clients' loss exposures?
Field Underwriter - ✔✔✔-James works very closely with producers on a daily basis. In
addition to evaluating the applicants that the producers submit, James is involved in
®™
, AINS 101 Simulated Exam Questions & Answers Latest Update
presenting policy quotations, processing policy endorsements, helping to explain
coverages, and making coverage recommendations. James works as a
Balance sheet - ✔✔✔-Rachel is considering investing in the stock of an insurance
company. Which one of the following is likely to provide the best indication of the
insurer's financial position at this point in time?
Support producers and insureds - ✔✔✔-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:
Large number of similar exposure units - ✔✔✔-Oscar's custom-built vehicle looks like a
sausage sandwich on wheels. He plans to drive it to special events at schools around the
country where it will serve as a mobile billboard to promote his product. Oscar is
surprised to learn that insurers are reluctant to insure his vehicle because it fails to meet
one of the ideal characteristics of an insurable risk. Which characteristic is Oscar's vehicle
least likely to meet?
Capacity - ✔✔✔-Which one of the following is the amount of business an insurer can
write based on regulatory guidelines, usually a comparsion of the insurer's written
premiums to the policyholders' surplus?
Mutual insurer - ✔✔✔-Joe is the owner of JG Auto Repair. He is always frustrated with
the amount of commercial insurance premium he pays every year, even though he has
not had a single claim in over 10 years. Joe is looking to partner with an insurance
company that will share its profits and maybe return a portion of his premium if the
results are good. Which one of the following types of insurer is the right fit for Joe?
®™
