AINS 101 SIMULATED EXAM QUESTIONS
AND ANSWERS LATEST 2025-2026
Exclusive agency is retained to sell insurance on behalf of one insurer or
insurers - ANSWER The difference between an independent agency and an
exclusive agency is that an
Insurance shortages - ANSWER Destructive competition in the insurance
market can result in
Veronica directly calls Maria for guidance on reporting a stolen car, Maria
provides her with that, and claims handler Sean intervenes after being
introduced by Maria - ANSWER Maria is a rookie producer who does it all
when it comes to establishing relationships and then transacting business with
her established customers. In this role, which of the following best describes her
present work wearing the "claims handler" cap?
$350 Replacement cost - Depreciation -
ANSWER John's bicycle was stolen, and it was two years old. The original
purchase price of the bicycle was $700, the current cost to replace it is $800,
and depreciation was estimated at $450. What was the actual cash value of the
bicycle?
Underwriting authority reports -
ANSWER All of the following are sources of underwriting information to
analyze an insurance submission, EXCEPT
Risk management techniques implemented can be ineffectual or obsolete -
ANSWER Which of the following does best to explain why producers must stay
current regarding clients' loss exposures?
, Field Underwriter - ANSWER James has daily close coordination with
producers. In addition to the analysis of the applicants presented by the
producers, James is involved in providing policy quotes, processing policy
endorsements, aiding in explanations of coverages, and issuing coverage
recommendations. James is a
Balance sheet - ANSWER Rachel wants to invest in the shares of an insurer.
Which of the following is most likely to tell her best about the insurer's financial
position at this moment in time?
Support producers and insureds - ANSWER Bernadette and Rachel are
corporate underwriters, while Tomas and Jose are field underwriters for
Greenfield Insurance Company. The following are all typical underwriting
activities normally performed by corporate (or staff) underwriters like
Bernadette and Rachel, EXCEPT:
Large number of similar exposure units - ANSWER Oscar's car that is uniquely
shaped is like a sausage sandwich on wheels. He plans on taking it to school
field trips throughout the country where it will serve as a billboard for
advertising his product. Oscar is surprised to discover that insurance companies
are not eager to insure his vehicle because it doesn't fit by virtue of being one of
the desirable characteristics of an insurable risk. Which characteristic is Oscar's
car least likely to have?
Capacity - ANSWER Which of the following is the amount of business that an
insurer can write pursuant to regulatory regulations, typically a ratio of insurer
written premiums to policyholders' surplus?
Mutual insurer - ANSWER Joe is the owner of JG Auto Repair. He is always
resentful of the amount of commercial insurance premium that he pays each
year, even though he has not made a single claim in over 10 years. Joe desires to
be paired with an insurer that will share its profits and maybe return some of his
premium if everything goes well. Which of the following sorts of insurer is
appropriate for Joe?
AND ANSWERS LATEST 2025-2026
Exclusive agency is retained to sell insurance on behalf of one insurer or
insurers - ANSWER The difference between an independent agency and an
exclusive agency is that an
Insurance shortages - ANSWER Destructive competition in the insurance
market can result in
Veronica directly calls Maria for guidance on reporting a stolen car, Maria
provides her with that, and claims handler Sean intervenes after being
introduced by Maria - ANSWER Maria is a rookie producer who does it all
when it comes to establishing relationships and then transacting business with
her established customers. In this role, which of the following best describes her
present work wearing the "claims handler" cap?
$350 Replacement cost - Depreciation -
ANSWER John's bicycle was stolen, and it was two years old. The original
purchase price of the bicycle was $700, the current cost to replace it is $800,
and depreciation was estimated at $450. What was the actual cash value of the
bicycle?
Underwriting authority reports -
ANSWER All of the following are sources of underwriting information to
analyze an insurance submission, EXCEPT
Risk management techniques implemented can be ineffectual or obsolete -
ANSWER Which of the following does best to explain why producers must stay
current regarding clients' loss exposures?
, Field Underwriter - ANSWER James has daily close coordination with
producers. In addition to the analysis of the applicants presented by the
producers, James is involved in providing policy quotes, processing policy
endorsements, aiding in explanations of coverages, and issuing coverage
recommendations. James is a
Balance sheet - ANSWER Rachel wants to invest in the shares of an insurer.
Which of the following is most likely to tell her best about the insurer's financial
position at this moment in time?
Support producers and insureds - ANSWER Bernadette and Rachel are
corporate underwriters, while Tomas and Jose are field underwriters for
Greenfield Insurance Company. The following are all typical underwriting
activities normally performed by corporate (or staff) underwriters like
Bernadette and Rachel, EXCEPT:
Large number of similar exposure units - ANSWER Oscar's car that is uniquely
shaped is like a sausage sandwich on wheels. He plans on taking it to school
field trips throughout the country where it will serve as a billboard for
advertising his product. Oscar is surprised to discover that insurance companies
are not eager to insure his vehicle because it doesn't fit by virtue of being one of
the desirable characteristics of an insurable risk. Which characteristic is Oscar's
car least likely to have?
Capacity - ANSWER Which of the following is the amount of business that an
insurer can write pursuant to regulatory regulations, typically a ratio of insurer
written premiums to policyholders' surplus?
Mutual insurer - ANSWER Joe is the owner of JG Auto Repair. He is always
resentful of the amount of commercial insurance premium that he pays each
year, even though he has not made a single claim in over 10 years. Joe desires to
be paired with an insurer that will share its profits and maybe return some of his
premium if everything goes well. Which of the following sorts of insurer is
appropriate for Joe?
