AINS 101 Practice Questions Latest Update -

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

A liability loss has the following damages:

Medical expenses:$10,000Damages for disfigurement:$50,000Damages for pain and

suffering:$100,000

What is the amount of special damages? - CORRECT ANSWER: The amount of special

damages is $10,000. Special damages are for specific, identifiable expenses.

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

following ways? - CORRECT ANSWER: Stockholders own a stock insurer. Members

own a reciprocal insurance exchange.

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? -

CORRECT ANSWER: Strategic risk

Actual cash value (ACV) is - CORRECT ANSWER: replacement cost minus

depreciation

Adjuster Toni is evaluating damages in a bodily injury liability claim where she has determined that the insured is completely at fault for the accident. The claimant suffered a sprain and strain injury to his neck. His special damages total $1,500. He was out of work for a week, was disabled and prevented from performing some regular activities for a month, and attended physical therapy for six weeks. In assessing general

damages, Toni should - CORRECT ANSWER: Use past cases which are similar as a

guide

After Marvin's car was stolen, and he was reimbursed for the loss by Greatson Insurance, the police found and returned the vehicle, which was dented and spray- painted, but still had parts that could be usable. Greatson's rights to recover and sell or 1 / 2

otherwise dispose of insured property on which it has paid a total loss are called -

CORRECT ANSWER: Salvage rights

Salvage rights allow the insurer to recover and sell or otherwise dispose of insured property on which the insurer has paid a total loss.

Aimee recently accepted a job in the Underwriting department at Noble Insurance Company. Her responsibilities will include developing coverage forms, arranging reinsurance agreements, and conducting underwriting audits. Which one of the

following is the title of Aimee's new job? - CORRECT ANSWER: Corporate

underwriters, sometimes referred to as staff underwriters, perform duties including: developing coverage forms, arranging reinsurance, conducting underwriting audits, researching the market, and revising underwriting guidelines.

Alicia works for the Drewman Agency, Sandi at insurer Greenway Insurance, and Rosa at Grossman Brokers, all as customer service representatives. Which one of the following is true regarding their work? - CORRECT ANSWER: Alicia can process policy endorsements and explain coverage to her customers.

All of the following are categories of liabilities found on an insurer's balance sheet, EXCEPT: - CORRECT ANSWER: Policyholders' surplus

All of the following are sources of underwriting information to evaluate an insurance submission, EXCEPT: - CORRECT ANSWER: Underwriting authority reports

All of the following are types of private insurers, EXCEPT: - CORRECT ANSWER: State workers compensation funds

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? - CORRECT ANSWER: Allian issues more preprinted policies than manuscript forms.

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 - CORRECT

ANSWER: Conditional contract.

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