AINS 101 Exam Questions And
Answers | Certified
/. Which one of the following best explains why producers should be alert to changes in
clients' loss exposures?
A. Implemented risk management techniques may prove to be ineffective or become
obsolete.
B. Knowledge of such changes will inform their efforts to create a list of experts that can
be called to assist.
C. Producers can aid clients in developing risk management cost allocation plans.
D. Producers have expertise about risk financing through insurance. - Answer-✅A.
Implemented risk management techniques may prove to be ineffective or become
obsolete.
/.The processing of almost every claim involves which one of the following activities?
A. Engaging an accident scene reconstruction specialist
B. Determining the amount of damages or extent of loss
C. Subrogating
D. Salvaging - Answer-✅B. Determining the amount of damages or extent of loss
/.Maria is a new producer who wears many hats when forming relationships and then
serving her established customers. In this capacity, which one of the following scenarios
most accurately describes her ongoing work wearing the hat of "claims handler"?
A. Customer Roland directly contacts Maria and she assumes full responsibility for his
claim as she was the first insurance employee to receive the claims information.
B. Juanita directly contacts Maria who sold her a policy to adjust her homeowners claim;
Maria nicely explains she has no further responsibilities after making the sale.
C. Alex directly contacts Maria after a hailstorm damages his new car the day after he
bought a policy from her, and she handles the claim as he is a brand new customer.
D. Veronica directly contacts Maria for guidance on how to report a stolen car, Maria
provides that, and claims rep Sean takes over after an introduction from Maria. -
Answer-✅D. Veronica directly contacts Maria for guidance on how to report a stolen
car, Maria provides that, and claims rep Sean takes over after an introduction from
Maria.
/.Jessie is a new customer service representative (CSR) at the Winfield Agency. Jessie
usually engages in all the following activities, EXCEPT:
Select one:
A. Answering billing inquiries
B. Explaining coverage
C. Reporting new claims
D. Determining coverage quotes - Answer-✅D. Determining coverage quotes
, /.Michael is a commercial lines underwriter. He received a risk control report on a new
business that he had recently written with Laura, one of his producers. After reviewing
the report, Michael contacted Laura to let her know that they needed to process a policy
change request adding a new classification and some exposures to the general liability
policy. These activities are occurring during which one of the following steps of the
underwriting process?
Select one:
A. Determine an appropriate premium
B. Issue required documents
C. Monitor the underwriting decision
D. Evaluate the application - Answer-✅C. Monitor the underwriting decision
/.Earned premiums are the portion of written premiums that
Select one:
A. Apply to the part of the policy period that has already occurred.
B. Apply to the part of the policy period that follows a loss.
C. Are billed at the beginning of the policy period.
D. Are available to generate investment income. - Answer-✅A. Apply to the part of the
policy period that has already occurred
/.Which one of the following is the correct formula for calculating an insurer's combined
ratio?
Select one:
A. Investment income ratio + premium income ratio
B. Investment income ratio + overall operating ratio
C. Loss ratio + underwriting ratio
D. Loss ratio + expense ratio - Answer-✅D. Loss ratio + expense ratio
/.Oscar's custom-built vehicle looks like a sausage sandwich on wheels. He plans to
drive it to special events at schools around the country where it will serve as a mobile
billboard to promote his product. Oscar is surprised to learn that insurers are reluctant to
insure his vehicle because it fails to meet one of the ideal characteristics of an insurable
risk. Which characteristic is Oscar's vehicle least likely to meet?
Select one:
A. Definite and measurable
B. Independent and not catastrophic
C. Pure risk
D. Large number of similar exposure units - Answer-✅D. Large number of similar
exposure units
/.If an insured wants to receive "new for old" in the event of a property loss, he or she
would purchase
Select one:
A. Agreed value.
B. Replacement cost.
Answers | Certified
/. Which one of the following best explains why producers should be alert to changes in
clients' loss exposures?
A. Implemented risk management techniques may prove to be ineffective or become
obsolete.
B. Knowledge of such changes will inform their efforts to create a list of experts that can
be called to assist.
C. Producers can aid clients in developing risk management cost allocation plans.
D. Producers have expertise about risk financing through insurance. - Answer-✅A.
Implemented risk management techniques may prove to be ineffective or become
obsolete.
/.The processing of almost every claim involves which one of the following activities?
A. Engaging an accident scene reconstruction specialist
B. Determining the amount of damages or extent of loss
C. Subrogating
D. Salvaging - Answer-✅B. Determining the amount of damages or extent of loss
/.Maria is a new producer who wears many hats when forming relationships and then
serving her established customers. In this capacity, which one of the following scenarios
most accurately describes her ongoing work wearing the hat of "claims handler"?
A. Customer Roland directly contacts Maria and she assumes full responsibility for his
claim as she was the first insurance employee to receive the claims information.
B. Juanita directly contacts Maria who sold her a policy to adjust her homeowners claim;
Maria nicely explains she has no further responsibilities after making the sale.
C. Alex directly contacts Maria after a hailstorm damages his new car the day after he
bought a policy from her, and she handles the claim as he is a brand new customer.
D. Veronica directly contacts Maria for guidance on how to report a stolen car, Maria
provides that, and claims rep Sean takes over after an introduction from Maria. -
Answer-✅D. Veronica directly contacts Maria for guidance on how to report a stolen
car, Maria provides that, and claims rep Sean takes over after an introduction from
Maria.
/.Jessie is a new customer service representative (CSR) at the Winfield Agency. Jessie
usually engages in all the following activities, EXCEPT:
Select one:
A. Answering billing inquiries
B. Explaining coverage
C. Reporting new claims
D. Determining coverage quotes - Answer-✅D. Determining coverage quotes
, /.Michael is a commercial lines underwriter. He received a risk control report on a new
business that he had recently written with Laura, one of his producers. After reviewing
the report, Michael contacted Laura to let her know that they needed to process a policy
change request adding a new classification and some exposures to the general liability
policy. These activities are occurring during which one of the following steps of the
underwriting process?
Select one:
A. Determine an appropriate premium
B. Issue required documents
C. Monitor the underwriting decision
D. Evaluate the application - Answer-✅C. Monitor the underwriting decision
/.Earned premiums are the portion of written premiums that
Select one:
A. Apply to the part of the policy period that has already occurred.
B. Apply to the part of the policy period that follows a loss.
C. Are billed at the beginning of the policy period.
D. Are available to generate investment income. - Answer-✅A. Apply to the part of the
policy period that has already occurred
/.Which one of the following is the correct formula for calculating an insurer's combined
ratio?
Select one:
A. Investment income ratio + premium income ratio
B. Investment income ratio + overall operating ratio
C. Loss ratio + underwriting ratio
D. Loss ratio + expense ratio - Answer-✅D. Loss ratio + expense ratio
/.Oscar's custom-built vehicle looks like a sausage sandwich on wheels. He plans to
drive it to special events at schools around the country where it will serve as a mobile
billboard to promote his product. Oscar is surprised to learn that insurers are reluctant to
insure his vehicle because it fails to meet one of the ideal characteristics of an insurable
risk. Which characteristic is Oscar's vehicle least likely to meet?
Select one:
A. Definite and measurable
B. Independent and not catastrophic
C. Pure risk
D. Large number of similar exposure units - Answer-✅D. Large number of similar
exposure units
/.If an insured wants to receive "new for old" in the event of a property loss, he or she
would purchase
Select one:
A. Agreed value.
B. Replacement cost.
