AINS 102 EXAMINATION TEST VERIFIED
QUESTIONS AND SOLUTIONS GRADED A+
●● Heather and Jeff had the roof blown off their home during a recent
storm. Which one of the following best expresses the financial outcome
they are currently experiencing?
A) Lost income
B) Reduction in property value
C) Increased expenses
D) No change in their financial outcome
Answer: B
●● Sophie was involved in an auto accident with another vehicle. The
driver of the other vehicle was seriously injured. The individual spent 10
days in the hospital, missed 2 months of work, and continues to
experience mental distress. The other vehicle was also damaged, with
repair costs of $5,000. It was determined that Sophie was liable for the
damages because she ran a red light and caused the accident. Which one
of the following damages would be considered general damages?
A) Damages to the vehicle
B) Hospital and medical bills
C) Two months of lost wages
,D) Mental distress compensation
Answer: D
●● SF Poultry learned that a number of individuals had become ill and
hospitalized after eating chicken from one of its processing plants. The
company did not advise the public or its distributors of the problem, and
made no effort to recall the spoiled product. Over 50 individuals ended-
up becoming ill from the spoiled chicken. SF Poultry was found liable in
court. In addition to having to pay the medical and hospital bills for the
injured individuals, damages were levied against SF Poultry to punish
the company for its reckless and deceitful actions. These damages that
were levied against SF Poultry are known as
A) Punitive damages.
B) Special damages.
C) General damages.
D) Necessary damages.
Answer: A
●● Which one of the following is considered a high-risk driver?
A) Stacey was involved in a deadly car accident.
B) Mark was caught and convicted of driving under the influence of
alcohol
, C) Martin can only qualify for the most expensive auto insurance
D) Cyndy cannot obtain insurance from a private insurer
Answer: B
●● Coverage that pays benefits, regardless of fault, for medical expense,
income loss, and other benefits, resulting from bodily injury to
occupants of a covered auto is
A) Compulsory auto insurance law coverage
B) Residual market coverage
C) Personal injury protection coverage
D) Financial responsibility law coverage
Answer: C
●● All of the following are true of the HO-3 Special Form, EXCEPT:
A) The HO-3 is designed for owners who occupy their dwelling or
choose to rent it.
B) The HO-3 can be modified for special needs through available
endorsements.
C) The HO-3 is typically used as a basis for understanding other HO
coverage forms.
D) The HO-3 meets the property and liability coverage needs of most
families.
QUESTIONS AND SOLUTIONS GRADED A+
●● Heather and Jeff had the roof blown off their home during a recent
storm. Which one of the following best expresses the financial outcome
they are currently experiencing?
A) Lost income
B) Reduction in property value
C) Increased expenses
D) No change in their financial outcome
Answer: B
●● Sophie was involved in an auto accident with another vehicle. The
driver of the other vehicle was seriously injured. The individual spent 10
days in the hospital, missed 2 months of work, and continues to
experience mental distress. The other vehicle was also damaged, with
repair costs of $5,000. It was determined that Sophie was liable for the
damages because she ran a red light and caused the accident. Which one
of the following damages would be considered general damages?
A) Damages to the vehicle
B) Hospital and medical bills
C) Two months of lost wages
,D) Mental distress compensation
Answer: D
●● SF Poultry learned that a number of individuals had become ill and
hospitalized after eating chicken from one of its processing plants. The
company did not advise the public or its distributors of the problem, and
made no effort to recall the spoiled product. Over 50 individuals ended-
up becoming ill from the spoiled chicken. SF Poultry was found liable in
court. In addition to having to pay the medical and hospital bills for the
injured individuals, damages were levied against SF Poultry to punish
the company for its reckless and deceitful actions. These damages that
were levied against SF Poultry are known as
A) Punitive damages.
B) Special damages.
C) General damages.
D) Necessary damages.
Answer: A
●● Which one of the following is considered a high-risk driver?
A) Stacey was involved in a deadly car accident.
B) Mark was caught and convicted of driving under the influence of
alcohol
, C) Martin can only qualify for the most expensive auto insurance
D) Cyndy cannot obtain insurance from a private insurer
Answer: B
●● Coverage that pays benefits, regardless of fault, for medical expense,
income loss, and other benefits, resulting from bodily injury to
occupants of a covered auto is
A) Compulsory auto insurance law coverage
B) Residual market coverage
C) Personal injury protection coverage
D) Financial responsibility law coverage
Answer: C
●● All of the following are true of the HO-3 Special Form, EXCEPT:
A) The HO-3 is designed for owners who occupy their dwelling or
choose to rent it.
B) The HO-3 can be modified for special needs through available
endorsements.
C) The HO-3 is typically used as a basis for understanding other HO
coverage forms.
D) The HO-3 meets the property and liability coverage needs of most
families.
