AINS 101 | 112 Question with 100 % correct answers |
Verified
/. Which one of the following represents uncertainty about outcomes that can negative
or positive?
A. Risk
B. Transfer
C. Pooling
D. Loss Exposure
/.When her car's windshield breaks, Ciara has to pay only $100 of the $600 cost of
replacing it -As a single mother on a very tight budget, Ciara is tempted to skimp on her
insurance. However, her friend Mehmet tells her not to skimp on insurance, because it
will help her manage her cash flows. Which one of the following examples best
illustrates Mehmet's point?
A. When her car's transmission goes out month after the warranty expires, Ciara is
faced with a $1,100 repair bill
B. Ciara finds it difficult to come up with a $787 auto insurance premium every six
months.
C. When her car's windshield breaks, Ciara has to pay only $100 of the $600 cost of
replacing it
D. Ciara needs her car to get to her job, and she needs her job to make car payments
and pay for her car insurance
/.A homeowners policy is a type of:
A. Commercial insurance policy
B. Life insurance policy
C. Personal umbrella policy
D. Personal property-casualty insurance policy
/.Shelton Industries experienced a fire in its manufacturing plant. Several employees
suffered burns and smoke inhalation injuries as they tried to escape the building. Which
one of Shelton Industries' commercial property-casualty policies would pay for the
employees' injuries and illnesses?
A. Commercial property insurance
B. Commercial umbrella insurance
C. Commercial general liability insurance
D. Workers compensation insurance
, /.The state of Maryland operates a residual auto plan (the Maryland Auto Insurance
Fund - MAIF) that provides coverage for drivers who are unable to obtain coverage from
private insurers. Which of the following is the best rationale for the MAIF program?
A. Auto insurance for high-risk drivers is profitable, and the program enables the state to
share in the profits
B. Auto insurance is compulsory, and the program makes it possible for all drivers to
have reasonably priced insurance
C. Private insurers overcharge for auto insurance, and the state provides a low-cost
alternative
D. Private insurers face limited competition, and the state increases competitive
pressures by operating this type of plan
/.Which one of the following statements is correct regarding government involvement in
insurance?
A. Federal and state government are involved in insurance to help facilitate compulsory
insurance purchases
B. Most organizations obtain workers compensation insurance through federal or state
insurance programs
C. Government insurance plans typically incur significant costs in marketing and sales
commissions
D. Legislators find it more straightforward to invite and analyze bids from private
insurers than to establish government plans
/.ABC Company experienced a dramatic ideological shift in corporate policies after a
national election. This is an example of which one of the following quadrants of risk?
A. Operational risk
B. Strategic risk
C. Hazard risk
D. Financial risk
/.Mutual Fund Company (MFC) offers a wide array of mutual fund options to investors.
Each mutual fund has a different fund objective and set of investment guidelines that
apply to the fund. While MFC gives considerable freedom to is fun portfolio managers,
they are required to abide by the fund's compliance with investment guidelines. To
monitor compliance, MFC developed a computer algorithm. The algorithm continuously
monitors each fund's compliance with investment guidelines. MFC's use of the
computer algorithm to monitor investment compliance and to provide notification when
corrective action is necessary illustrates use of:
A. Mechanical sensors
B. Computer vision
C. Artificial Intelligence
D. Transducer technology
/.Loss exposure - Answer-✅Any condition or situation that presents a possibility of loss,
whether or not an actual loss occurs
Verified
/. Which one of the following represents uncertainty about outcomes that can negative
or positive?
A. Risk
B. Transfer
C. Pooling
D. Loss Exposure
/.When her car's windshield breaks, Ciara has to pay only $100 of the $600 cost of
replacing it -As a single mother on a very tight budget, Ciara is tempted to skimp on her
insurance. However, her friend Mehmet tells her not to skimp on insurance, because it
will help her manage her cash flows. Which one of the following examples best
illustrates Mehmet's point?
A. When her car's transmission goes out month after the warranty expires, Ciara is
faced with a $1,100 repair bill
B. Ciara finds it difficult to come up with a $787 auto insurance premium every six
months.
C. When her car's windshield breaks, Ciara has to pay only $100 of the $600 cost of
replacing it
D. Ciara needs her car to get to her job, and she needs her job to make car payments
and pay for her car insurance
/.A homeowners policy is a type of:
A. Commercial insurance policy
B. Life insurance policy
C. Personal umbrella policy
D. Personal property-casualty insurance policy
/.Shelton Industries experienced a fire in its manufacturing plant. Several employees
suffered burns and smoke inhalation injuries as they tried to escape the building. Which
one of Shelton Industries' commercial property-casualty policies would pay for the
employees' injuries and illnesses?
A. Commercial property insurance
B. Commercial umbrella insurance
C. Commercial general liability insurance
D. Workers compensation insurance
, /.The state of Maryland operates a residual auto plan (the Maryland Auto Insurance
Fund - MAIF) that provides coverage for drivers who are unable to obtain coverage from
private insurers. Which of the following is the best rationale for the MAIF program?
A. Auto insurance for high-risk drivers is profitable, and the program enables the state to
share in the profits
B. Auto insurance is compulsory, and the program makes it possible for all drivers to
have reasonably priced insurance
C. Private insurers overcharge for auto insurance, and the state provides a low-cost
alternative
D. Private insurers face limited competition, and the state increases competitive
pressures by operating this type of plan
/.Which one of the following statements is correct regarding government involvement in
insurance?
A. Federal and state government are involved in insurance to help facilitate compulsory
insurance purchases
B. Most organizations obtain workers compensation insurance through federal or state
insurance programs
C. Government insurance plans typically incur significant costs in marketing and sales
commissions
D. Legislators find it more straightforward to invite and analyze bids from private
insurers than to establish government plans
/.ABC Company experienced a dramatic ideological shift in corporate policies after a
national election. This is an example of which one of the following quadrants of risk?
A. Operational risk
B. Strategic risk
C. Hazard risk
D. Financial risk
/.Mutual Fund Company (MFC) offers a wide array of mutual fund options to investors.
Each mutual fund has a different fund objective and set of investment guidelines that
apply to the fund. While MFC gives considerable freedom to is fun portfolio managers,
they are required to abide by the fund's compliance with investment guidelines. To
monitor compliance, MFC developed a computer algorithm. The algorithm continuously
monitors each fund's compliance with investment guidelines. MFC's use of the
computer algorithm to monitor investment compliance and to provide notification when
corrective action is necessary illustrates use of:
A. Mechanical sensors
B. Computer vision
C. Artificial Intelligence
D. Transducer technology
/.Loss exposure - Answer-✅Any condition or situation that presents a possibility of loss,
whether or not an actual loss occurs
