AINS 101 Exam Prep 1 Latest Update -

AINS 101 Exam Prep 1 Latest Update - Actual Exam with 140 Questions and 100% Verified Correct Answers Guaranteed A+ At First Attempt Verified By Professor

5 main provisions of insurance policies - CORRECT ANSWER: 1. Declarations

• Definitions
• Insuring agreement
• Policy conditions
• Policy exclusions

6 Key Traits of Ideally Insurable Loss Exposures - CORRECT ANSWER: 1. Pure risk

• Fortuitous
• Definite and measurable
• Loss exposure that is one of a large number of similar exposure units
• Independent and not catastrophic
• Affordable

Actual cash value - CORRECT ANSWER: replacement cost minus depreciation

Actual cash value - CORRECT ANSWER: the cost to replace property with new

property of like kind and quality less depreciation

Admitted assets - CORRECT ANSWER: items that insurers can easily turn into cash, such as stocks, bonds, and real estate

Adverse selection - CORRECT ANSWER: insuring individuals with a high probability of loss at a cost lower than the insurer would normally charge for that risk because it wasn't aware of the actual risk involved 1 / 3

Agency - CORRECT ANSWER: a legal, consensual relationship that exists when one

party, the agent, acts on behalf of another party, the principal

Agency expiration list - CORRECT ANSWER: the record of an insurance agency's

present policyholders and the dates their policies expire

Agent - CORRECT ANSWER: in the agency relationship, the party that is authorized by the principal to act on the principal's behalf

Agreed value method - CORRECT ANSWER: A method of valuing property in which the

insurer and the insured agree, at the time the policy is written, on the maximum amount that will be paid in the event of a total loss.

An income statement shows: - CORRECT ANSWER: 1. Total revenue

• Total expenses
• Net income for a time period

Artificial intelligence - CORRECT ANSWER: enables computers to perform tasks that require critical thinking, such as making decisions

Assets - CORRECT ANSWER: types of property, both tangible and intangible, owned by an entity

Balance sheet - CORRECT ANSWER: the financial statement that reports the assets, liabilities, and owner's equity of an organization as of a specific date

Balance sheet includes - CORRECT ANSWER: Insurers assets such as:

• Cash
• Liabilities
• Surplus 2 / 3

Binder - CORRECT ANSWER: a temporary written or oral agreement to provide

insurance coverage until a formal written policy is issued

Book of business - CORRECT ANSWER: a group of policies with a common

characteristic, such as territory or type of coverage, or all policies written by a particular insurer or agency

Broker - CORRECT ANSWER: an independent producer who represents insurance

customers

Brokerage - CORRECT ANSWER: compensation in the form of a flat fee or a

commission that is paid by the reinsurer to the reinsurance intermediary for services provided

Capacity - CORRECT ANSWER: the amount of business an insurer is able to write,

usually based on a comparison of the insurer's written premiums to its policyholder's surplus

Captive insurer - CORRECT ANSWER: formed to cover the loss exposures of specific organizations

Catastrophe model - CORRECT ANSWER: a type of computer program that estimates

losses from future potential catastrophic events

Certificate of insurance - CORRECT ANSWER: a brief descriptions of insurance

coverage prepared by an insurer or its agent and commonly used by policy holders to provide evidence of insurance

Claim - CORRECT ANSWER: a demand by a person or business seeking to recover

from an insurer for a loss that may be covered by an insurance policy

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