AINS 101 Increasing Your Insurance IQ Exam| Questions and Verified Answers| 100% Correct| Grade A (Latest 2023/ 2024 Update)

AINS 101 Increasing Your Insurance IQ

Exam| Questions and Verified Answers|

100% Correct| Grade A (Latest 2023/ 2024

Update)

Q: In personal property-casualty insurance, which is more common: manu- script forms or preprinted policies?

Answer:

Pre-printed policies

Q: Which statement is true?

Answer:

A policy begins with a coverage overview, then goes into more coverage details

Q: Which of these is an example of general damages?

Answer:

Compensation for disfigurement

Q: What are the four quadrants of risk?

Answer:

Hazard, Operational, Financial, Strate- gic

Q: What is a Hazard Risk?

Answer:

A risk that arises from property, liability, or personnel loss exposures.

Q: What is an operational risk?

Answer:

A risk that arises from people or a failure in processes, systems, or controls, including those

involving information technology

Q: What is a financial risk?

Answer:

A risk that arises from the effect of market forces on financial assets or liabilities, including

market risk, credit risk, liquidity risk, and price risk.

Q: What is strategic risk?

Answer:

A risk that arises from trends in the economy and society, including changes in the economic,

political, and competitive environments

Q: What is Pure Risk?

Answer:

A category of risk that cannot be controlled, and only has

2 outcomes: complete loss or no loss

Q: What type of risk has no change for gain or profit?

Answer:

Pure Risk