AINS 102 EXAM SCRIPT PREMIUM REVIEW
SHEET TESTED QUESTIONS AND ANSWERS
●● Which one of the following is considered real property?
Select one:
A. An automobile
B. A house
C. Furniture
D. A motorhome
Answer: B. A house
●● All of the following could lead to a liability loss for a family,
EXCEPT:
Select one:
A. The father trips on a broom he left lying in the driveway and breaks
his arm.
B. The son, who is 13 years old, throws a rock at a classmate who
requires stitches for an injury to his head.
C. A guest slips on an icy sidewalk in front of the family's home and
breaks his leg.
D. The daughter, who is 16 years old, sideswipes a neighbor's car and
dents its fender while driving her own car.
,Answer: A. The father trips on a broom he left lying in the driveway and
breaks his arm.
●● Which one of the following is a form of compensatory damages?
Select one:
A. Real damages
B. Special damages
C. Punitive damages
D. Exemplary damages
Answer: B. Special damages
●● Which one of the following is used by the majority of states to
compensate auto accident victims?
Select one:
A. Personal injury protection coverage
B. Tort liability system
C. Uninsured motorist coverage
D. Unsatisfied judgment funds
Answer: B. Tort liability system
●● Which one of the following statements is true regarding automobile
insurance rating?
Select one:
,A. State regulators require that all insurers offer discounts on auto rates
for passive restraints.
B. Most insurers base automobile rates on primary rating factors and do
not consider any other factors in establishing rates.
C. State regulators require that rates be adequate, reasonable, and not
unfairly discriminatory.
D. Drivers with lower-than-average loss exposure are charged higher
rates.
Answer: C. State regulators require that rates be adequate, reasonable,
and not unfairly discriminatory.
●● All of the following are true of the HO-3 Special Form, EXCEPT:
Select one:
A. The HO-3 is designed for owners who occupy their dwelling or
choose to rent it.
B. The HO-3 meets the property and liability coverage needs of most
families.
C. The HO-3 is typically used as a basis for understanding other HO
coverage forms.
D. The HO-3 can be modified for special needs through available
endorsements.
Answer: A. The HO-3 is designed for owners who occupy their dwelling
or choose to rent it.
, ●● Estelle and Richie are very conservative and want to purchase
insurance to "cover everything" in order to lessen the worries of home
ownership. Which one of the following ISO forms will provide them
dwelling and personal property insurance with the broadest possible
coverage?
Select one:
A. HO-2 Broad Form
B. HO-3 Special Form
C. HO-5 Comprehensive Form
D. HO-8 Modified Form
Answer: C. HO-5 Comprehensive Form
●● The Agreement and Definitions page of the Personal Auto Policy
(PAP) includes
Select one:
A. The name of the insurer issuing the policy.
B. A general agreement stating the insurer's duty to pay damages and
defense costs subject to the terms of the policy.
C. A general agreement stating that the insurer is providing the coverage
subject to payment of premium and to the terms of the policy.
D. The name and mailing address of the insured.
Answer: C. A general agreement stating that the insurer is providing the
coverage subject to payment of premium and to the terms of the policy.
SHEET TESTED QUESTIONS AND ANSWERS
●● Which one of the following is considered real property?
Select one:
A. An automobile
B. A house
C. Furniture
D. A motorhome
Answer: B. A house
●● All of the following could lead to a liability loss for a family,
EXCEPT:
Select one:
A. The father trips on a broom he left lying in the driveway and breaks
his arm.
B. The son, who is 13 years old, throws a rock at a classmate who
requires stitches for an injury to his head.
C. A guest slips on an icy sidewalk in front of the family's home and
breaks his leg.
D. The daughter, who is 16 years old, sideswipes a neighbor's car and
dents its fender while driving her own car.
,Answer: A. The father trips on a broom he left lying in the driveway and
breaks his arm.
●● Which one of the following is a form of compensatory damages?
Select one:
A. Real damages
B. Special damages
C. Punitive damages
D. Exemplary damages
Answer: B. Special damages
●● Which one of the following is used by the majority of states to
compensate auto accident victims?
Select one:
A. Personal injury protection coverage
B. Tort liability system
C. Uninsured motorist coverage
D. Unsatisfied judgment funds
Answer: B. Tort liability system
●● Which one of the following statements is true regarding automobile
insurance rating?
Select one:
,A. State regulators require that all insurers offer discounts on auto rates
for passive restraints.
B. Most insurers base automobile rates on primary rating factors and do
not consider any other factors in establishing rates.
C. State regulators require that rates be adequate, reasonable, and not
unfairly discriminatory.
D. Drivers with lower-than-average loss exposure are charged higher
rates.
Answer: C. State regulators require that rates be adequate, reasonable,
and not unfairly discriminatory.
●● All of the following are true of the HO-3 Special Form, EXCEPT:
Select one:
A. The HO-3 is designed for owners who occupy their dwelling or
choose to rent it.
B. The HO-3 meets the property and liability coverage needs of most
families.
C. The HO-3 is typically used as a basis for understanding other HO
coverage forms.
D. The HO-3 can be modified for special needs through available
endorsements.
Answer: A. The HO-3 is designed for owners who occupy their dwelling
or choose to rent it.
, ●● Estelle and Richie are very conservative and want to purchase
insurance to "cover everything" in order to lessen the worries of home
ownership. Which one of the following ISO forms will provide them
dwelling and personal property insurance with the broadest possible
coverage?
Select one:
A. HO-2 Broad Form
B. HO-3 Special Form
C. HO-5 Comprehensive Form
D. HO-8 Modified Form
Answer: C. HO-5 Comprehensive Form
●● The Agreement and Definitions page of the Personal Auto Policy
(PAP) includes
Select one:
A. The name of the insurer issuing the policy.
B. A general agreement stating the insurer's duty to pay damages and
defense costs subject to the terms of the policy.
C. A general agreement stating that the insurer is providing the coverage
subject to payment of premium and to the terms of the policy.
D. The name and mailing address of the insured.
Answer: C. A general agreement stating that the insurer is providing the
coverage subject to payment of premium and to the terms of the policy.
