AINS 102: UNDERSTANDING PERSONAL INSURANCE
EXAM QUESTIONS AND ANSWERS 100%
ACCURATE!!
, 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.
Attachment - ANSWER The act of seizing property to secure a judgment.
Catastrophe - ANSWER A single event that causes widespread losses.
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.
Compensatory damages - ANSWER A payment awarded by a court to reimburse a
victim for actual harm.
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.
Criminal law - ANSWER The branch of the law that imposes penalties for wrongs
against society.
Cross-selling - ANSWER Selling new types of insurance products to existing clients.
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.
Deductible - ANSWER A portion of a covered loss that is not paid by the insurer.
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.
First party - ANSWER The insured in an insurance contract.
Floater - ANSWER A policy designed to cover property that floats, or moves, from
location to location.
EXAM QUESTIONS AND ANSWERS 100%
ACCURATE!!
, 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.
Attachment - ANSWER The act of seizing property to secure a judgment.
Catastrophe - ANSWER A single event that causes widespread losses.
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.
Compensatory damages - ANSWER A payment awarded by a court to reimburse a
victim for actual harm.
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.
Criminal law - ANSWER The branch of the law that imposes penalties for wrongs
against society.
Cross-selling - ANSWER Selling new types of insurance products to existing clients.
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.
Deductible - ANSWER A portion of a covered loss that is not paid by the insurer.
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.
First party - ANSWER The insured in an insurance contract.
Floater - ANSWER A policy designed to cover property that floats, or moves, from
location to location.
