AIN1501 EXAM PACK 2024-2025
Which one of these is most directly associated with a satisfied customer? -
ANS-Leads and referrals that can be used to
... [Show More] generate new business
The two main sectors of the insurance industry are - ANS-Propertycasualty insurance and life-health insurance.
Joe and Helene are married with two teenage children and two dogs. They
own three cars and a large house with a swimming pool in the back yard.
Their insurance agent advised them that the pool, teenage drivers, and
dogs put them at risk for large liability losses. Which one of the following
personal property-casualty insurance policies would provide them with
protection for their high potential for large liability losses? - ANS-Personal
Umbrella
Because the insurance company usually determines policy wording and the
insured has little choice but to "take it or leave it, an insurance contract is a
- ANS-Contract of adhesion
Which two of the four quadrants of risk are classified as pure risk? - ANSHazard risks and operational risks
At Greenfield Insurance Company, Bernadette and Rachel are corporate
underwriters, and Tomas and Jose are field underwriters. All of the
following are underwriting activities typically performed by corporate (or
staff) underwriters like Bernadette and Rachel, EXCEPT: - ANS-Support
producers and insureds
The processing of almost every claim involves which one of the following
activities? - ANS-Determining the amount of damages or extent of loss
The financial report for Hometown Insurer contains the following
information:
Earned premiums$4,000,000
Written premiums$5,000,000
Net investment income$1,000,000
Incurred losses$3,000,000
Incurred underwriting expenses$2,000,000
What is Hometown Insurer's loss ratio? - ANS-75% (3,000,000/4,000,000)
Risk control can assist the claims department by - ANS-Providing
laboratory analyses.
Sports, Inc. is looking to obtain a commercial property policy on its building
for $400,000. If their insurer decides to charge them a rate of $0.50 per
$100 of building insurance, what premium must Sports, Inc. pay? - ANS-
$2,000
Which one of the following is the correct formula for calculating an insurer's
combined ratio? - ANS-Loss ratio + expense ratio
Maria is a new producer who wears many hats when forming relationships
and then serving her established customers. In this capacity, which one of
the following scenarios most accurately describes her ongoing work
wearing the hat of "claims handler"? - ANS-Veronica directly contacts Maria
for guidance on how to report a stolen car, Maria provides that, and claims
rep Sean takes over after an introduction from Maria.
Riley Turner is performing a comprehensive evaluation of Hardwick
Enterprises to make sure its insurance and risk management efforts are
serving the organization appropriately. Which one of the following will be
true in regard to this effort? - ANS-Besides risk management goals being
attainable, they should also pose a challenge.
Erin has recently graduated from college and relocated to Chicago. She
has purchased a car and rented an apartment and now needs to purchase
insurance. Erin is looking for minimum coverages and the lowest price
available. Which one of the following is likely the best distribution system to
meet Erin's needs? - ANS-Direct response
Jennie recently purchased a personal auto policy from Westcox Insurers.
Three weeks later, Jennie reported her car was stolen from her driveway
during the middle of the day. Upon further investigation, claims
representative Harry finds out the home address he has on file for Jennie
does not match the location where the theft occurred. In light of this
scenario, which one of the following would be particularly helpful for Harry
to pursue concerning Jenny's claim? - ANS-Harry can verify Jennie's [Show Less]