AINS 101 Practice questions and 100% Verified Correct Answers Latest Update 2025-2026 Guaranteed A+

1. 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?
a. When her car's windshield breaks, Ciara has to pay only $100 of the $600 cost of
replacing it
2. Shelton Industries experienced a fire in its manufacturing plant. Several employees suffered
burns and smoke inhalation injuries as they tried to escape the building. Which one of
Shelton Industries' commercial property-casualty policies would pay for the employees'
injuries and illnesses?
a. Workers compensation insurance
3. Coverage for money and other business property from various causes of loss such as
burglary, robbery, theft, and employee dishonesty typically is provided by
a. Commercial crime insurance
4. All of the following are types of private insurers, EXCEPT:
a. State workers compensation funds
5. The state of Maryland operates a residual auto plan (the Maryland Auto Insurance Fund—
MAIF) that provides coverage for drivers who are unable to obtain coverage from private
insurers. Which one of the following is the best rationale for the MAIF program?
a. Auto insurance is compulsory, and the program makes it possible for all drivers to
have reasonably priced insurance
6. ABC Company experienced a dramatic ideological shift in corporate policies after a national
election. This is an example of which one of the following quadrants of risk?
a. Strategic risk
7. Carlos is new to the insurance business and is learning about insurance regulation and what
he, now working with Grady Insurance, will need to be aware of regarding the subject of
compliance. Which one of the following will Carlos find is accurate as he better understands
why insurance is regulated?
a. Insurance regulation protects customers by guaranteeing insurance is available and
accessible to everyone who needs it.
8. What term refers to the ability of an insurer to meet its obligations as they become due?