AINS 101 EXAM/112 QUESTIONS
AND SOLUTIONS GRADED A+ 2025
, Bill is an insurance producer for and employed by ABC Insurance Company (ABC). He represents only
ABC when marketing insurance products, and uses an administrative staff also employed by ABC. Bill is
a producer in the - Answer- Direct writer marketing system
Because the insurance company usually determines policy wording and the insured has little choice but to
"take it or leave it," an insurance contract is a - Answer- Contract of adhesion
Which one of the following best explains why producers should be alert to changes in clients' loss
exposures? - Answer- Implemented risk management techniques may prove to be ineffective or become
obsolete
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: - Answer- Support producers and
insureds
Joel is the underwriter for Stanton Industries. He received a notice from the premium auditor on the
account. After a recent visit to the insured's location, the auditor wanted to make Joel aware of a decline
in the business and some questionable business practices. Which one of the following types of hazards is
the auditor identifying? - Answer- Moral hazards
Moral hazards - Answer- include questionable business practices or a failing business.
James West is a claims rep with Hatters Insurance. As he learns how to handle a claim from start to finish,
which one of the following best describes the correct order for him to follow during this process? -
Answer- Identifying the policy, calculating a loss reserve, determining the cause of loss, preparing a loss
statement
Margaret was severely injured and scarred due to a recent accident. Which one of the following is an
example of general damages Margaret received? - Answer- Compensation for disfigurement
AND SOLUTIONS GRADED A+ 2025
, Bill is an insurance producer for and employed by ABC Insurance Company (ABC). He represents only
ABC when marketing insurance products, and uses an administrative staff also employed by ABC. Bill is
a producer in the - Answer- Direct writer marketing system
Because the insurance company usually determines policy wording and the insured has little choice but to
"take it or leave it," an insurance contract is a - Answer- Contract of adhesion
Which one of the following best explains why producers should be alert to changes in clients' loss
exposures? - Answer- Implemented risk management techniques may prove to be ineffective or become
obsolete
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: - Answer- Support producers and
insureds
Joel is the underwriter for Stanton Industries. He received a notice from the premium auditor on the
account. After a recent visit to the insured's location, the auditor wanted to make Joel aware of a decline
in the business and some questionable business practices. Which one of the following types of hazards is
the auditor identifying? - Answer- Moral hazards
Moral hazards - Answer- include questionable business practices or a failing business.
James West is a claims rep with Hatters Insurance. As he learns how to handle a claim from start to finish,
which one of the following best describes the correct order for him to follow during this process? -
Answer- Identifying the policy, calculating a loss reserve, determining the cause of loss, preparing a loss
statement
Margaret was severely injured and scarred due to a recent accident. Which one of the following is an
example of general damages Margaret received? - Answer- Compensation for disfigurement
