FREE AND STUDY GAMES ABOUT AINS 101 QUESTIONS

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FREE AND STUDY GAMES ABOUT AINS 101 QUESTIONS

EXAM QUESTIONS

Actual Qs and Ans Expert-Verified Explanation

This Exam contains:

-Guarantee passing score -23 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation Question 1: Mary has been approved for a life insurance policy with a low premium because on her application she falsely stated that she does not indulge in dangerous activities. What is this?

Answer:

Adverse selection

Question 2: Producers do what 6 things

Answer:

sales, risk management review, policy issuance, premium collection, customer service, claims handling

Question 3: Insurance policy has what 6 characteristics

Answer:

contract of indemnity, utmost good faith, adhesion, conditional contract, nontransferable, involves fortuitous events and exchange of unequal amounts

Question 4: What 3 concepts are pertinent to understanding insurance

Answer:

risk, transfer, pooling

Question 5: Camron is an underwriter who reviewed an application and determined that modifications must be made before Camron can accept the application. What are some modifications she might require?

Answer:

raise premium or change policy terms Question 6: Private insurance providing insurance unavailable in standard market

Answer:

surplus lines

Question 7: What does an insurer's income statement show?

Answer:

Its revenues, expenses, and net income Question 8: Name the tasks that must be completed to implement an underwriting decision?

Answer:

communicate it to the producer (agent or broker), issue the required documents, and record information about the applicant and policy.Question 9: Which producer function can help lay the groundwork for sales while also strengthening the producer/customer relationship?

Answer:

risk management review Question 10: Mary determines that the loss occurred during Ken's policy period and that coverages in the policy apply to the loss and then calculates an appropriate loss reserve. What is the next step she should complete?

Answer:

contacting insured

Question 11: What three provisions form the core of every insurance policy?

Answer:

declarations, definitions, insuring agreement

Question 12: Insurance benefits who?

Answer:

those whose losses are paid and society

Question 13: Examples of federal government insurance plans

Answer:

National Flood Insurance Program, Terrorism Risk Insurance Program Question 14: Which quadrant of risk arises from trends in the economy and society?

Answer:

strategic risk

Question 15: What is the most important function of a producer?

Answer:

sales Question 16: Results-based standards focus on the ______ of the program, no matter how much ____ is required to achieve them.

Answer:

goals, effort Question 17: A self-employed tattoo artist wants to make sure she's covered in case a client sues her. What policy type would her agent suggest?

Answer:

manuscript Question 18: What promise do the insuring agreements of most liability policies make?

Answer:

to pay damages for bodily injury or property damage for which an insured becomes legally liable and to which the coverage applies.

Question 19: What type of insurance form is most widely used?

Answer:

preprinted forms

Question 20: Which group of underwriters would be best suited to select new and renewal accounts that meet the insurer's underwriting guidelines?

Answer:

Field

Question 21: Examples of exposure units

Answer:

area, gross receipts, payroll, value insured Question 22: The insurer determines the exact wording of the policy, the insured has little choice but to take it or leave it. This is what?

Answer:

contract of adhesion Question 23: Courtney runs a delivery service and chose to install rear-view cameras in all work vehicles. What standard has Courtney focused on?

Answer:

Activity-based standards