AINS 102 Understanding Personal Insurance Exam Questions with Correct
Answers
Question 1:
Arbitration
Answer:
An alternative dispute resolution (ADR) method by which disputing parties use a neutral outside
party to examine the issues and develop a settlement, which can be final and binding.
Question 2:
Attachment
Answer:
The act of seizing property to secure a judgment.
Question 3:
Catastrophe
Answer:
A single event that causes widespread losses.
Question 4:
Civil law
Answer:
A classification of law that applies to legal matters not governed by criminal law and that
protects rights and provides remedies for breaches of duties owed to others.
Question 5:
Compensatory damages
Answer:
A payment awarded by a court to reimburse a victim for actual harm.
Question 6:
Compulsory auto insurance law
Answer:
Law that requires the owners or operators of automobiles to carry automobile liability
insurance at least equal to certain minimum limits before the vehicle can be licensed or
registered.
, Question 7:
Criminal law
Answer:
The branch of the law that imposes penalties for wrongs against society.
Question 8:
Cross-selling
Answer:
Selling new types of insurance products to existing clients.
Question 9:
Damages
Answer:
Money claimed by, or a monetary award to, a party who has suffered loss or injury for which
another party is legally responsible.
Question 10:
Deductible
Answer:
A portion of a covered loss that is not paid by the insurer.
Question 11:
Financial responsibility laws
Answer:
Law enacted to ensure that motorists have the financial ability to pay for any property damage
or bodily injury they might cause as a result of driving or owning an auto.
Question 12:
First party
Answer:
The insured in an insurance contract.
Question 13:
Floater
Answer:
A policy designed to cover property that floats, or moves, from location to location.
Answers
Question 1:
Arbitration
Answer:
An alternative dispute resolution (ADR) method by which disputing parties use a neutral outside
party to examine the issues and develop a settlement, which can be final and binding.
Question 2:
Attachment
Answer:
The act of seizing property to secure a judgment.
Question 3:
Catastrophe
Answer:
A single event that causes widespread losses.
Question 4:
Civil law
Answer:
A classification of law that applies to legal matters not governed by criminal law and that
protects rights and provides remedies for breaches of duties owed to others.
Question 5:
Compensatory damages
Answer:
A payment awarded by a court to reimburse a victim for actual harm.
Question 6:
Compulsory auto insurance law
Answer:
Law that requires the owners or operators of automobiles to carry automobile liability
insurance at least equal to certain minimum limits before the vehicle can be licensed or
registered.
, Question 7:
Criminal law
Answer:
The branch of the law that imposes penalties for wrongs against society.
Question 8:
Cross-selling
Answer:
Selling new types of insurance products to existing clients.
Question 9:
Damages
Answer:
Money claimed by, or a monetary award to, a party who has suffered loss or injury for which
another party is legally responsible.
Question 10:
Deductible
Answer:
A portion of a covered loss that is not paid by the insurer.
Question 11:
Financial responsibility laws
Answer:
Law enacted to ensure that motorists have the financial ability to pay for any property damage
or bodily injury they might cause as a result of driving or owning an auto.
Question 12:
First party
Answer:
The insured in an insurance contract.
Question 13:
Floater
Answer:
A policy designed to cover property that floats, or moves, from location to location.
