AINS 101 | 112 Question with 100 % correct answers | V
m m m m m m m m m m m
erified
Amclaimsmrepresentativemshouldmaskmfourmquestionsmwhenmprocessingmampropertyminsurancemclaim.mCan
m youm name m them?m -
m ✔✔The m fourm questionsm claims m representatives mshould mask mare:m •mDoes m them insuredm have m anm insurabl
e minterestminmthe mproperty?m• mIsmthe mdamagedmpropertymcoveredmbymthempolicy?m•mIsmthemcausemofmloss
m covered mbymthem policy?m• mDomany madditionalmcoverages, mendorsements, morm coveragemlimitations m apply
?
Amhome mownersmpolicymismamtype mof m-m✔✔Personalmproperty-casualtyminsurance mpolicy.
Amliabilitymadjustermmustmbe mconcernedmwithmspecific,mout-of-
pocketmexpensesmwhenmevaluatingmthemdamagesmbeingmclaimed.mThemtechnicalmtermmformsuchmexpenses
m is
A. Measurable mdamages.
B. Specialmdamages.
C. Generalmdamages.
D. Punitive mdamages.m-m✔✔Specialmdamages.m(Themtechnicalmtermmformsuchmexpensesmismspecialmdamages.)
Amliabilitymlossmhasmthe mfollowingmdamages:
Medicalmexpenses:m$10,000m Damag
esmformdisfigurement:m$50,000
Damagesmformpainmandmsuffering:m$100,00
0mWhatmismthe mamountmofmgeneralmdamag
es?
A. $m60,000
B. $110,000
C. $150,000
D. $160,000m-
m ✔✔$150,000m (The m amountmof mgeneralm damagesmism $150,000. m Generalmdamages marem form losses m t
hatmdomnotmhave mamspecificmeconomicmvalue.)
,Amliabilitymlossmhasmthe mfollowingmdamages:
,Medicalmexpenses:m$10,000m Damag
esmformdisfigurement:m$50,000
Damagesmformpainmandmsuffering:m$100,00
0mWhatmismthe mamountmofmspecialmdamage
s?
A. $10,000
B. $50,000
C. $100,000
D. $160,000m-
m ✔✔$10,000m (The m amountmof mspecialm damagesmism $10,000. m Specialm damages marem formspecific, m identifia
ble mexpenses.)
Ampersonmormentitymthatmwouldmsuffermamfinancialmlossmifmpropertymwere mdamagedmhas
A. Amcontractualminterest.
B. Amdiscretionaryminterest.
C. Anminsurable minterest.
D. Amrenewable minterest.m-
m ✔✔Anm insurable minterest. m(Am person mormentity mthatmwould msufferm amfinancialm loss m ifm property mwerem da
magedmhasmanminsurable minterest.)
Amreinsurance mcompany
A. Assumesmlossmexposuresmfrommamprimaryminsurer.
B. Providesmprimaryminsurance mformlossmexposuresmthatmprivate minsurersmare munwillingmtomprovide.
C. Ismformedmtomwrite mallmormpartmof mthe minsurance mformamparentmcompany.
D. Transfersmlossesmtomamprimaryminsurer.m-m✔✔Assumesmlossmexposuresmfrommamprimaryminsurer.
Amself-
employedmtattoomartistmwantsmtommake msure mshe'smcoveredminmcasemamclientmsuesmher.mWhatmpolicymtyp
e mwouldmhermagentmsuggest?m-
m ✔✔Anm agentmwouldmsuggestm ammanuscriptmpolicy m becausemhermcoverage mneedsmarem likely m notmcommo
nmtomamlarge mnumbermofminsureds.
, Amstockminsurermdiffersmfrommamreciprocalminsurance mexchange minmwhichmone mof mthe mfollowingmways?
A. Bothmare mformedmtomprovidemprofitmtominvestors.mHowever,mthe mstockminsurermismmanagedmthro
ughmamboardmofmdirectors.
B. Amstockminsurermprovidesminsurance mtomitsmpolicyholder-
owners.mAmreciprocalminsurance mexchange mprovidesminsurance mtominvestors.
C. Bothmare mownedmbymstockholders.mHowever,mthe mreciprocalminsurance mexchangemprovidesmcoverag
e mtominvestors.
D. Stockholdersmownmamstockminsurer.mMembersmownmamreciprocalminsurancemexchange.m-
m ✔✔Stockholdersm ownm am stockm insurer.m Membersmownm am reciprocalm insurance mexchange.m(Stockholder
smownmamstockminsurer.mMembersm(subscribers) mownmamreciprocalminsurance mexchange.)
Amtype mof minsurermthatmismownedmbympolicyholdersmandmmaympaymdividendsmtompolicyholdersmasmamretur
nmof mamportionmof mpremiumsmpaidmismam-m✔✔Mutualminsurer.
ABCmCompanymexperiencedmamdramaticmideologicalmshiftminmcorporatempoliciesmaftermamnationalmelectio
n.mThismismanmexample mofmwhichmone mof mthe mfollowingmquadrantsmofmrisk?
A. Operationalmrisk
B. Financialmrisk
C. Strategicmrisk
D. Hazardmriskm-m✔✔StrategicmRisk
ActualmCashmValue m(ACV) m-
m ✔✔The m costm tom replace m property m withm new m property m of m like m kindm andm quality m lessm depreciation
Actualmcashmvalue m(ACV) mis
A. Agreedmvalue mminusmdepreciation.
B. Replacementmcostmplusmdepreciation.
C. Replacementmcostmminusmagreedmvalue.
m m m m m m m m m m m
erified
Amclaimsmrepresentativemshouldmaskmfourmquestionsmwhenmprocessingmampropertyminsurancemclaim.mCan
m youm name m them?m -
m ✔✔The m fourm questionsm claims m representatives mshould mask mare:m •mDoes m them insuredm have m anm insurabl
e minterestminmthe mproperty?m• mIsmthe mdamagedmpropertymcoveredmbymthempolicy?m•mIsmthemcausemofmloss
m covered mbymthem policy?m• mDomany madditionalmcoverages, mendorsements, morm coveragemlimitations m apply
?
Amhome mownersmpolicymismamtype mof m-m✔✔Personalmproperty-casualtyminsurance mpolicy.
Amliabilitymadjustermmustmbe mconcernedmwithmspecific,mout-of-
pocketmexpensesmwhenmevaluatingmthemdamagesmbeingmclaimed.mThemtechnicalmtermmformsuchmexpenses
m is
A. Measurable mdamages.
B. Specialmdamages.
C. Generalmdamages.
D. Punitive mdamages.m-m✔✔Specialmdamages.m(Themtechnicalmtermmformsuchmexpensesmismspecialmdamages.)
Amliabilitymlossmhasmthe mfollowingmdamages:
Medicalmexpenses:m$10,000m Damag
esmformdisfigurement:m$50,000
Damagesmformpainmandmsuffering:m$100,00
0mWhatmismthe mamountmofmgeneralmdamag
es?
A. $m60,000
B. $110,000
C. $150,000
D. $160,000m-
m ✔✔$150,000m (The m amountmof mgeneralm damagesmism $150,000. m Generalmdamages marem form losses m t
hatmdomnotmhave mamspecificmeconomicmvalue.)
,Amliabilitymlossmhasmthe mfollowingmdamages:
,Medicalmexpenses:m$10,000m Damag
esmformdisfigurement:m$50,000
Damagesmformpainmandmsuffering:m$100,00
0mWhatmismthe mamountmofmspecialmdamage
s?
A. $10,000
B. $50,000
C. $100,000
D. $160,000m-
m ✔✔$10,000m (The m amountmof mspecialm damagesmism $10,000. m Specialm damages marem formspecific, m identifia
ble mexpenses.)
Ampersonmormentitymthatmwouldmsuffermamfinancialmlossmifmpropertymwere mdamagedmhas
A. Amcontractualminterest.
B. Amdiscretionaryminterest.
C. Anminsurable minterest.
D. Amrenewable minterest.m-
m ✔✔Anm insurable minterest. m(Am person mormentity mthatmwould msufferm amfinancialm loss m ifm property mwerem da
magedmhasmanminsurable minterest.)
Amreinsurance mcompany
A. Assumesmlossmexposuresmfrommamprimaryminsurer.
B. Providesmprimaryminsurance mformlossmexposuresmthatmprivate minsurersmare munwillingmtomprovide.
C. Ismformedmtomwrite mallmormpartmof mthe minsurance mformamparentmcompany.
D. Transfersmlossesmtomamprimaryminsurer.m-m✔✔Assumesmlossmexposuresmfrommamprimaryminsurer.
Amself-
employedmtattoomartistmwantsmtommake msure mshe'smcoveredminmcasemamclientmsuesmher.mWhatmpolicymtyp
e mwouldmhermagentmsuggest?m-
m ✔✔Anm agentmwouldmsuggestm ammanuscriptmpolicy m becausemhermcoverage mneedsmarem likely m notmcommo
nmtomamlarge mnumbermofminsureds.
, Amstockminsurermdiffersmfrommamreciprocalminsurance mexchange minmwhichmone mof mthe mfollowingmways?
A. Bothmare mformedmtomprovidemprofitmtominvestors.mHowever,mthe mstockminsurermismmanagedmthro
ughmamboardmofmdirectors.
B. Amstockminsurermprovidesminsurance mtomitsmpolicyholder-
owners.mAmreciprocalminsurance mexchange mprovidesminsurance mtominvestors.
C. Bothmare mownedmbymstockholders.mHowever,mthe mreciprocalminsurance mexchangemprovidesmcoverag
e mtominvestors.
D. Stockholdersmownmamstockminsurer.mMembersmownmamreciprocalminsurancemexchange.m-
m ✔✔Stockholdersm ownm am stockm insurer.m Membersmownm am reciprocalm insurance mexchange.m(Stockholder
smownmamstockminsurer.mMembersm(subscribers) mownmamreciprocalminsurance mexchange.)
Amtype mof minsurermthatmismownedmbympolicyholdersmandmmaympaymdividendsmtompolicyholdersmasmamretur
nmof mamportionmof mpremiumsmpaidmismam-m✔✔Mutualminsurer.
ABCmCompanymexperiencedmamdramaticmideologicalmshiftminmcorporatempoliciesmaftermamnationalmelectio
n.mThismismanmexample mofmwhichmone mof mthe mfollowingmquadrantsmofmrisk?
A. Operationalmrisk
B. Financialmrisk
C. Strategicmrisk
D. Hazardmriskm-m✔✔StrategicmRisk
ActualmCashmValue m(ACV) m-
m ✔✔The m costm tom replace m property m withm new m property m of m like m kindm andm quality m lessm depreciation
Actualmcashmvalue m(ACV) mis
A. Agreedmvalue mminusmdepreciation.
B. Replacementmcostmplusmdepreciation.
C. Replacementmcostmminusmagreedmvalue.
