AINS 101 EXAM Latest Update -

AINS 101 EXAM Latest Update - Actual Exam with 100 Questions and 100% Verified Correct Answers Guaranteed A+ At First Attempt Verified By Professor

A liability loss has the following damages:

Medical expenses: $10,000

Damages for disfigurement: $50,000

Damages for pain and suffering: $100,000

What is the amount of general damages?

A. $ 60,000

B. $110,000

C. $150,000

D. $160,000 - CORRECT ANSWER: C. $150,000 - General damages are for losses that

do not have a specific economic value.

A person or entity that would suffer a financial loss if property were damaged has

• A contractual interest.
• A renewable interest.
• A discretionary interest.

D. An insurable interest. - CORRECT ANSWER: D. An insurable interest.

A stock insurer differs from a reciprocal insurance exchange in which one of the following ways?

Select one:

• Stockholders own a stock insurer. Members own a reciprocal insurance exchange.
• Both are formed to provide profit to investors. However, the stock insurer is managed

through a board of directors. 1 / 3

• Both are owned by stockholders. However, the reciprocal insurance exchange

provides coverage to investors.

• A stock insurer provides insurance to its policyholder-owners. A reciprocal insurance

exchange provides insurance to investors. - CORRECT ANSWER: A. Stockholders own

a stock insurer. Members own a reciprocal insurance exchange.

A type of insurer that is owned by policyholders and may pay dividends to policyholders as a return of a portion of premiums paid is a

• Captive insurer.
• Mutual insurer.
• Reciprocal insurance exchange.

D. Stock insurer. - CORRECT ANSWER: B. Mutual insurer.

Actual cash value (ACV) is

• Replacement cost minus agreed value.
• Replacement cost minus depreciation.
• Replacement cost plus depreciation.

D. Agreed value minus depreciation. - CORRECT ANSWER: B. Replacement cost

minus depreciation.

Adverse Selection - CORRECT ANSWER: the problem of incomplete information - of

choosing alternatives without fully knowing the details of available options

All of the following are categories of liabilities found on an insurer's balance sheet,

EXCEPT:

Select one:

• Other liabilities
• Loss and loss expense reserves
• Policyholders' surplus

D. Unearned premium reserves - CORRECT ANSWER: C. Policyholders' surplus

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All of the following are sources of underwriting information to evaluate an insurance

submission, EXCEPT:

• Underwriting authority reports
• Telematic
• Applications

D. Inspection reports - CORRECT ANSWER: A. Underwriting authority reports

Allian Insurance Company is a growing regional insurer selling policies in three states, specializing in personal auto and homeowners policies. Which one of the following is most likely true regarding Allian and the policies it sells?

Select one:

• The manuscript forms that Allian issues are developed by ISO.
• Customized coverages are usually issued through a self-contained policy.
• Allian issues more preprinted policies than manuscript forms.
• Allian offers modular policies for coverages common to a large number of its

insureds. - CORRECT ANSWER: C. Allian issues more preprinted policies than

manuscript forms.

An insurer that was formed for the purpose of earning a profit for its stockholders is a

• Mutual insurer.
• Reciprocal insurance exchange.
• Stock insurer.

D. Captive insurer. - CORRECT ANSWER: C. Stock insurer.

An insurer will make a loss payment if an insured loss occurs and if the insured performs certain duties. This illustrates that an insurance policy is a

• Contract of adhesion.
• Personal contract.
• Conditional contract.
• Contract of indemnity. - CORRECT ANSWER: C. Conditional contract.
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