1 | P a g e AINS 101 ACTUAL EXAM 2024 COMPLETE 250 QUESTIONS AND CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED A+||BRAND NEW!! Which one of the following statements is correct regarding the benefits provided by insurance? Select one: A. The reduction in losses paid by insurers due to risk control measures benefits individual insureds but not society as a whole. B. Insurance helps reduce the financial burden to society by compensating accident victims. C. The primary role of insurance is to meet mandatory insurance requirements. D. Insurance reduces the financial consequences of loss exposures but not the related uncertainty. - ANSWER- B. Insurance helps reduce the financial burden to society by compensating accident victims. Which one of the following represents uncertainty about outcomes that can be negative or positive? Select one: A. Pooling B. Loss exposure 2 | P a g e C. Transfer D. Risk - ANSWER- D. Risk A homeowners policy is a type of Select one: A. Commercial insurance policy. B. Personal umbrella policy. C. Personal property-casualty insurance policy. D. Life insurance policy. - ANSWER- C. Personal property-casualty insurance policy. Coverage for money and other business property from various causes of loss such as burglary, robbery, theft, and employee dishonesty typically is provided by Select one: A. Inland marine insurance. B. Ocean marine insurance. C. Commercial crime insurance. D. Professional liability insurance. - ANSWER- C. Commercial crime insurance. All of the following are types of private insurers, EXCEPT: Select one: A. Reciprocal insurance exchanges 3 | P a g e B. Stock insurers C. State workers compensation funds D. Mutual insurers - ANSWER- C. State workers compensation funds In an effort to reduce expenses, increase profitability, and reduce human errors; ABC Insurance Company decided to automate most of its personal lines underwriting function. The company now uses standardized application forms that are submitted electronically to one of the company's regional offices. At each regional office, a computer with a scanner reads the applications. The computer has been programmed with acceptable answers to the questions. If the answers on the application are all acceptable, the policy is automatically issued. Rejected applications are automatically forwarded to a human underwriter who reviews them. The use of this technology has reduced the company's expense ratio by two and a half percent, and reduced the time it takes to issue a policy. ABC Insurance Company's use of computers to evaluate applications electronically is an application of Select one: A. Artificial intelligence. B. Risk mana - ANSWER- A. Artificial intelligence Mutual Fund Company (MFC) offers a wide array of mutual fund options to investors. Each mutual fund has a different fund objective and set of investment guidelines that apply to the fund. While MFC gives considerable freedom to its fund portfolio managers, they are required to abide by the fund's investment guidelines. To monitor compliance, MFC developed a computer algorithm. The computer algorithm continuously monitors each fund's compliance with investment guidelines. If a fund manager violates the investment guidelines, the computer immediately 4 | P a g e notifies MFC's internal control director, and corrective action is taken. MFC's use of the computer algorithm to monitor investment compliance and to provide notification when corrective action is necessary illustrates use of Select one: A. Mechanical sensors. B. Transducer technology. C. Artificial intelligence. D. Computer vision. - ANSWER- C. Artificial intelligence. As a single mother on a very tight budget, Ciara is tempted to skimp on her insurance. However, her friend Mehmet tells her not to skimp on insurance, because it will help manage her cash flows. Which one of the following examples best illustrates Mehmet's point? Select one: A. Ciara needs her car to get to her job, and she needs her job to make car payments and pay for her car insurance. B. When her car's windshield breaks, Ciara has to pay only $100 of the $600 cost of replacing it. C. When her car's transmission goes out a month after the warranty expires, Ciara is faced with a $1,100 repair bill. D. Ciara finds it difficult to come up with a $787 auto insurance premium every six months. - ANSWER- B. When her car's windshield breaks, Ciara has to pay only $100 of the $600 cost of replacing it. The primary role of insurance is to Powered by https://learnexams.com/search/study?query=