Welcome to the INS21 Mock exam. All the best. Emulate the underwriting decision-making process as it would be performed by expert underwriters. Insurance company defends the Insured until the limits of the coverage is expended for the defence.
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Welcome to the INS21 Mock exam. All the best. Emulate the underwriting decision-making process as it would be performed by expert underwriters. Insurance company defends the Insured until the limits of the coverage is expended for the defence. The law of large numbers assists the insurance mechanism by improving the relative accuracy of prediction.
Regulate insurance rates to protect consumers from inadequate, excessive, or unfairly discriminatory rates. That is formed as a subsidiary of its parent company for the purpose of writing insurance on the parent company. The standard market refers collectively to insurers who voluntarily offer insurance coverages at markets designed for customers with average or better-than-average loss exposures.
Excess and surplus lines insurance consists of insurance coverages, usually available in the standard market, that are written by unlicensed insurers. Nonadmitted or unlicensed insurers are insurers that are not licensed in many of the states in which they operate and that write excess and surplus lines insurance coveages.
The major expense category for most insurance companies is payment for losses arising from claims. On their financial statements, insurance companies add expenses from investment income to show the net income from investments.
Offering anything of value, other than the insurance itself, to an applicant as an inducement to buy or maintain insurance. Misrepresentation of pertintent facts or insurance policy provisions relating to coverage at issue in a claim is an unfair claim practice. Refusal to pay a claim without first conducting a reasonable investigation based on all available information is an unfair claim practice. Insurance regulators usually learn of unfair claim practices when they receive complaints from insureds and claimants.
US Federal Insurance authority added the states of California and Florida to the list of covered states under the National Disaster Insurance programs. An annual report of all the insurance policies issued by an insurance company sent to the respective state Departments of Motor Vehicles DMV. A book of Insurance laws maintained by the State insurance commissioners in the early s in North America.
A list of all drivers in California with more than 6 major violations and 6 At-Fault accidents maintained by the State Insurance Authority. Tiwari's insurance company will review his driving record and learn about the violation when his policy comes up for renewal.
It provides proof that a driver has the minimum required liability insurance coverage for that particular state. An SR document is a written consent given by the Primary Insured on a policy to the Insurer stating that the Insurer can initiate liquidation of the Insured's property in case of any claims raised against the Insured, amount to more than the covered limits.
The insurer that is formed as a subsidiary of its own parent company, organization or group, for the purpose of writing all or part of the insurance on the parent company or companies. An insurer that is owned by its policy holders and formed as a corporation for the purpose of providing insurance to its policy holder-owners. A federal government funded, state controlled insurance organization providing insurance to unusual Insurance needs.
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Brown Company's Policy includes a liberalization clause. Brown's insurer introduces a policy change that broadens coverage at no additional premium. How will this change apply to Brown's existing policy? The broadened coverage automatically applies to Brown Company's policy. The broadened coverage will apply to Brown Company's policy with an endorsement. The broadened coverage will apply to Brown Company's new policies as they are issued.
If the insurer cancels the policy, the return premium will be calculated usually on a. Jim canceled his auto policy days after the inception date. Assuming that a year is days, what is Jim's pro rata premium refund? A policy in which the insurer pays a stated amount in the event of a specified loss usually a total loss , regardless of the actual value of the loss is known as a. Which one of the following statements is true regarding types of rates used by insurers?
Why would an underwriter modify the rate charged for the coverage provided when evaluating an application for insurance? Because treaty reinsurance in unavailable for the exposures indicated. To address the moral hazards the underwriter identified during investigation. In insurance terminology, which of the following refers to a book of business? In evaluating an application, an underwriter thinks that the class of business is not one that the company wishes to write, but he would need to physically inspect it to be certain.
He also realizes that the business is located in an undesirable section of the city. Based on the location alone, the underwriter decides not to issue the policy.
According to many state insurance laws, this would be an example of. Some insurers now use expert systems in the underwriting process.
The primary purpose of these expert systems is to. Men Pay more for Insurance than Women due to their aggessiveness behind wheels. Women Pay more for Insurance than men due to their soft behind wheels. Being a owner of house in US. Insurance company does washes of hands as it is not their responsibility to go to court. If an insurance company refuses to pay a claim that should be paid or offers to settle a claim for less than it knows the claim is worth or denies a claim without adequate investigation, this could give rise to.
Insurance companies are exempted from Consumer protection laws in some states. You have bought a flame red high performance engine car. You were surprised that despite your car has so many great safety features similar to other brand cars, your insurance company charged you more than what it was charging for other brand cars.
What could be the reason? The red color cars are alway percieved to recieved more traffic tickets. The high performance engine makes your car engine more prone to theft. The Insurance company had some secret dealings with the rival company. Most liability insurance policies exclude coverage for losses intentionally caused by the insured because such losses do not meet which one of the following characteristics of an ideally insurable exposure? Insurance works as a system of transferring and sharing the costs of losses.
Property loss exposures include negligence, real property, and personal property. A liability loss exposure presents the possibility of a claim alleging legal responsibility. State insurance departments:. Reinsurance is a contractual agreement:. In which one insurer transfers some or all of its loss exposures to another insurer. A guaranty fund is:. Created by the federal government for the purpose of providing insurance for the social good.
The primary funding for the Fair Access to Insurance Requirements program. A state fund that provides a system to pay the claims of insolvent insurers. The excess and surplus lines market is not subject to any state regulation. A ratemaking concept through which actuaries base rates on actuarially calculated loss experience and place insureds with similar characteristics into the same rating class is.
The two major types of liabilities found on the financial statements of insurers are:. Following is financial data of Itty-Bitty Insurance Company. Calculated by dividing its written premiums by its policyholders surplus. Calculated by subtracting the investment income ratio from the combined ratio. Calculated by dividing net investment income by earned premiums for a particular period.
Underwriting expenses include acquisition expenses, general expenses, and taxes and fees. Rebating is. Requiring that the purchase of insurance be tied to some other sale or financial arrangement. Misrepresenting the benefits, advantages, conditions, or terms of any insurance policy. Unfair claim practices specify claim practices that are illegal according to federal law. Loss reserves are. The largest and most important liabilities of property and liability insurance companies.
An estimate of the amount of claims payments that an insurer will make in the future. One night, on the way home from work, shewas involved in an auto accident. If there had been no injuries and damage to both vehicles had been minor, the claim would most likely be handled by a n.
Associate in General Insurance (AINS)
Error: Please make sure the Twitter account is public. It was always difficult to study after a long gap. I last studied for college exams. I managed studying for this certification for more than a month. I was bit cool than nervous.
Ins21 - Mock Exam
Insurance can be described as follows: A transfer system, in which one party the insured transfers the chance of financial loss to another party the insurance company or the insurer. An insured is a person, a business, or an organization whose property, life, or legal liability is covered by an insurance policy. An insurer is an insurance company. A business, which includes various operations that must be conducted in a way that generates sufficient income to pay claims and provide a reasonable profit for its owners. A contract between the insured and the insurer that states what potential costs of loss the insured is transferring to the insurer and expresses the insurers promise to pay for those costs of loss in exchange for a stated payment by the insured. Insurance as a Transfer System Insurance is a system that enables a person, family, or business to transfer the costs of losses to an insurance company.
Searching for AINS training? Then you've come to the right place! The courses provide you with a comprehensive knowledge of insurance principles, practices, policies, and coverages, while the optional electives allow you to focus on areas relevant to your professional goals. The AINS is recommended for people in all functional areas of property-casualty insurance, managers or supervisors, customer service representatives, call center staff, and administrative and support staff.