1|Page
AINS 101 EXAM WITH COMPLETE QUESTIONS
AND CORRECT VERIFIED ANSWERS (DETAILED
ANSWERS) ALREADY GRADED A+ 100%
GUARANTEED TO PASS CONCEPTS!!!.
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 manage her cash flows. Which one of the
following examples best illustrates Mehmet's point?
A. Ciara needs her car to get to her job, and she needs
her job to make car payments and pay for her car
insurance.
B. When her car's windshield breaks, Ciara has to pay
only $100 of the $600 cost of replacing it.
C. When her car's transmission goes out a month after
the warranty expires, Ciara is faced with a $1,100
repair bill.
D. Ciara finds it difficult to come up with a $787 auto
insurance premium every six months. - .....ANSWER
...✔✔ When her car's windshield breaks, Ciara has to
pay only $100 of the $600 cost of replacing it.
,2|Page
Which one of the following statements is correct
regarding the benefits provided by insurance?
A. Insurance reduces the financial consequences of loss
exposures but not the related uncertainty.
B. The primary role of insurance is to meet mandatory
insurance requirements.
C. The reduction in losses paid by insurers due to risk
control measures benefits individual insureds but not
society as a whole.
D. Insurance helps reduce the financial burden to society
by compensating accident victims. - .....ANSWER
...✔✔ Insurance helps reduce the financial burden to
society by compensating accident victims.
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? - .....ANSWER ...✔✔ Workers
compensation insurance
,3|Page
A homeowners policy is a type of - .....ANSWER
...✔✔ Personal property-casualty insurance policy.
Which one of the following correctly describes a reason
for government involvement in property-casualty
insurance?
A. Selling insurance provides the government with a non-
tax source of revenues and profits.
B. Government programs can meet legitimate public
demands unmet by private insurers.
C. Competition from government plans keeps private
insurer's premiums competitive.
D. Preventing high-risk individuals or activities from
being insured is in the public interest. - .....ANSWER
...✔✔ Government programs can meet legitimate
public demands unmet by private insurers.
Insurance Company wrote a commercial liability policy
for a manufacturer of off-road motorcycles. The
potential costs of the insured's loss exposure exceed
Insurance Company's capacity. Insurance Company could
consider which one of the following types of contractual
transferring agreement to meet its needs? - .....ANSWER
...✔✔ Reinsurance
, 4|Page
In an effort to reduce expenses, increase profitability,
and reduce human errors; ABC Insurance Company
decided to automate most of its personal lines
underwriting function. The company now uses
standardized application forms that are submitted
electronically to one of the company's regional offices.
At each regional office, a computer with a scanner
reads the applications. The computer has been
programmed with acceptable answers to the questions.
If the answers on the application are all acceptable, the
policy is automatically issued. Rejected applications are
automatically forwarded to a human underwriter who
reviews them. The use of this technology has reduced the
company's expense ratio by two and a half percent,
and reduced the time it takes to issue a policy. ABC
Insurance Company's use of computers to evaluate
applications electronically is an application of
A. Radiant sensors.
B. Artificial intelligence.
C. - .....ANSWER ...✔✔ Artificial intelligence.
Jimmy decided to buy a house in his neighborhood that
had been foreclosed on by the bank that held the
mortgage. He is hoping to do some renovation and
repair work on the house, and then sell it for a quick
AINS 101 EXAM WITH COMPLETE QUESTIONS
AND CORRECT VERIFIED ANSWERS (DETAILED
ANSWERS) ALREADY GRADED A+ 100%
GUARANTEED TO PASS CONCEPTS!!!.
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 manage her cash flows. Which one of the
following examples best illustrates Mehmet's point?
A. Ciara needs her car to get to her job, and she needs
her job to make car payments and pay for her car
insurance.
B. When her car's windshield breaks, Ciara has to pay
only $100 of the $600 cost of replacing it.
C. When her car's transmission goes out a month after
the warranty expires, Ciara is faced with a $1,100
repair bill.
D. Ciara finds it difficult to come up with a $787 auto
insurance premium every six months. - .....ANSWER
...✔✔ When her car's windshield breaks, Ciara has to
pay only $100 of the $600 cost of replacing it.
,2|Page
Which one of the following statements is correct
regarding the benefits provided by insurance?
A. Insurance reduces the financial consequences of loss
exposures but not the related uncertainty.
B. The primary role of insurance is to meet mandatory
insurance requirements.
C. The reduction in losses paid by insurers due to risk
control measures benefits individual insureds but not
society as a whole.
D. Insurance helps reduce the financial burden to society
by compensating accident victims. - .....ANSWER
...✔✔ Insurance helps reduce the financial burden to
society by compensating accident victims.
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? - .....ANSWER ...✔✔ Workers
compensation insurance
,3|Page
A homeowners policy is a type of - .....ANSWER
...✔✔ Personal property-casualty insurance policy.
Which one of the following correctly describes a reason
for government involvement in property-casualty
insurance?
A. Selling insurance provides the government with a non-
tax source of revenues and profits.
B. Government programs can meet legitimate public
demands unmet by private insurers.
C. Competition from government plans keeps private
insurer's premiums competitive.
D. Preventing high-risk individuals or activities from
being insured is in the public interest. - .....ANSWER
...✔✔ Government programs can meet legitimate
public demands unmet by private insurers.
Insurance Company wrote a commercial liability policy
for a manufacturer of off-road motorcycles. The
potential costs of the insured's loss exposure exceed
Insurance Company's capacity. Insurance Company could
consider which one of the following types of contractual
transferring agreement to meet its needs? - .....ANSWER
...✔✔ Reinsurance
, 4|Page
In an effort to reduce expenses, increase profitability,
and reduce human errors; ABC Insurance Company
decided to automate most of its personal lines
underwriting function. The company now uses
standardized application forms that are submitted
electronically to one of the company's regional offices.
At each regional office, a computer with a scanner
reads the applications. The computer has been
programmed with acceptable answers to the questions.
If the answers on the application are all acceptable, the
policy is automatically issued. Rejected applications are
automatically forwarded to a human underwriter who
reviews them. The use of this technology has reduced the
company's expense ratio by two and a half percent,
and reduced the time it takes to issue a policy. ABC
Insurance Company's use of computers to evaluate
applications electronically is an application of
A. Radiant sensors.
B. Artificial intelligence.
C. - .....ANSWER ...✔✔ Artificial intelligence.
Jimmy decided to buy a house in his neighborhood that
had been foreclosed on by the bank that held the
mortgage. He is hoping to do some renovation and
repair work on the house, and then sell it for a quick
