Ains 101 Exam / 80+ Questions And Verified Answers 2023/2024 / Graded A+.

Oscar's custom-built vehicle looks like a sausage sandwich on wheels. He plans to drive it to special events at schools around the country where it will serve as a mobile billboard to promote his product. Oscar is surprised to learn that insurers are reluctant to insure his vehicle because it fails to meet one of the ideal characteristics of an insurable risk. Which characteristic is Oscar's vehicle least likely to meet? {Ans: Large number of similar exposure units}What are the primary underwriting activities? {Ans: Minimize adverse selection, Ensure adequate policyholder's surplus, Enforce underwriting guidelines}What are punitive damages? {Ans: Damages awarded to victims to punish defendants for reckless, malicious, or deceitful acts}What is the cost of risk? {Ans: The total cost of all aspects of the organization that relate to managing risk}What is strategic risk? {Ans: A risk that arises from trends in the economy and society, including changes in the economic, political, and competitive environments}What is the difference between an independent agency and an exclusive agency? {Ans: An exclusive agency is contracted to sell insurance for one insurer or group of insurers.}Which of these activities is not performed by a customer service representative?