AINS 24 Questions from Google Doc with
complete solutions 2025/2026 A+ Graded
100% Verified
B. Pricing coverages for each applicant - ANS- 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 - ANS- 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. - ANS- 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. - ANS- 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 - ANS- 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 - ANS- 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. - ANS- 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.
C. Specifically name all of the covered causes of loss.
D. Place the burden of proof regarding a loss on the insured.
A. $10,435,450. - ANS- The balance sheet for National Insurance Company dated
December 31, showed total admitted assets of $15,000,450. National's loss and loss
settlement expense reserve was $3,065,000, its unearned premium reserve was
$1,000,000 and its other liabilities were $500,000. The policyholders' surplus as of
December 31, was
A. $10,435,450.
B. $11,935,450.
C. $13,500,450.
D. $15,000,450.
D. $200,000 bodily injury liability coverage toward the insured's injuries. - ANS- Assume
the insured was involved in an accident with another (at-fault) driver who collided with
the insured's car. The insured sues the at-fault driver for $200,000 to cover injuries
suffered during the accident.
Available Personal Auto Policy (PAP) Coverages
Insured's liability limit -- $300,000 single limit
Insured's uninsured motorists limit -- $100,000 single limit
Insured's underinsured motorists limit -- $100,000 single limit
At-fault driver's liability limit -- $100,000
Judgment obtained by insured against at-fault driver -- $200,000
complete solutions 2025/2026 A+ Graded
100% Verified
B. Pricing coverages for each applicant - ANS- 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 - ANS- 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. - ANS- 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. - ANS- 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 - ANS- 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 - ANS- 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. - ANS- 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.
C. Specifically name all of the covered causes of loss.
D. Place the burden of proof regarding a loss on the insured.
A. $10,435,450. - ANS- The balance sheet for National Insurance Company dated
December 31, showed total admitted assets of $15,000,450. National's loss and loss
settlement expense reserve was $3,065,000, its unearned premium reserve was
$1,000,000 and its other liabilities were $500,000. The policyholders' surplus as of
December 31, was
A. $10,435,450.
B. $11,935,450.
C. $13,500,450.
D. $15,000,450.
D. $200,000 bodily injury liability coverage toward the insured's injuries. - ANS- Assume
the insured was involved in an accident with another (at-fault) driver who collided with
the insured's car. The insured sues the at-fault driver for $200,000 to cover injuries
suffered during the accident.
Available Personal Auto Policy (PAP) Coverages
Insured's liability limit -- $300,000 single limit
Insured's uninsured motorists limit -- $100,000 single limit
Insured's underinsured motorists limit -- $100,000 single limit
At-fault driver's liability limit -- $100,000
Judgment obtained by insured against at-fault driver -- $200,000
