AINS 102 EXAM QUESTIONS AND
ANSWERS 100% CORRECT!!
,Real property (realty) - ANSWER Tangible property consisting of land, all structures
permanently attached to the land, and whatever is growing on the land.
Personal Property - ANSWER possessions such as jewelry, furniture, and boats
Damage to building by vandalism - Put a fence around the building - ANSWER Loss
Prevention
Home burglary - Install burglar alarm - ANSWER Loss reduction
Tort Damages - ANSWER compensatory damages and punitive damages
Negligence Tort - ANSWER careless neglect, often resulting in injury
Example: Driving while intoxicated and causing an accident
Intentional Tort - ANSWER A deliberate act that causes harm to another person
Example: assault
Strict Liability - ANSWER Inherently dangerous activities or dangerously defective
products that result in injury or harm
Example: Owning a wild animal
At-Fault States or Tort State - ANSWER a driver who causes a car crash is responsible
for compensating the other party or parties for their losses
No-Fault States - ANSWER the driver's personal injury protection (PIP) coverage pays
out after a car accident for lost wages and medical expenses, regardless of fault
Modified no-fault plans - ANSWER These allow injured motorists to collect economic
losses from their plan's PIP benefits. They may then have the ability to sue at-fault
drivers for any economic losses that exceed the no-fault coverage limits and for some
noneconomic losses.
, Add-on plans - ANSWER These add no-fault benefits to auto insurance policies but
place no restrictions on the injured person's right to sue a negligent party for damages.
Named perils coverage - ANSWER insures against causes of loss that are specifically
listed in the policy.
HO-2 Broad Form - ANSWER Provides named perils coverage for dwellings and
personal property and liability coverage.
HO-3 Special Form - ANSWER Provides open perils coverage for dwellings, named
perils coverage for personal property, and liability coverage.
HO-4 Contents Broad Form - ANSWER Often called renters insurance, it's designed for
tenants and other occupants of dwellings or apartments. It provides no dwelling
coverage, but it covers personal property on a named perils basis and provides liability
coverage.
HO-5 Comprehensive Form - ANSWER Provides the broadest coverage of all HO
forms. It covers dwellings and personal property on an open perils basis, and it provides
liability coverage.
HO-6 Unit-Owners Form - ANSWER Designed for owners of residential condominium
units and provides limited dwelling coverage. Named perils personal property coverage
is provided, as is liability coverage.
HO-8 Modified Coverage Form - ANSWER Designed for older buildings with a high
replacement cost compared to market value. Dwellings and personal property coverage
is provided on a more limited named perils basis. Liability coverage is also provided.
Endorsements - ANSWER Many endorsements are available to modify HO policies to
further enable them to meet the specific needs of individuals and families.
Endorsements can increase or decrease limits, add or remove coverages, change
definitions, clarify policy intent, or recognize specific characteristics that require a
premium increase or decrease.
Which one of the following statements regarding assets exposed to loss is true?
A. Real property includes only tangible property.
B. Earthquake damage to a swimming pool is an example of a personal property loss
exposure.
C. Personal property includes only tangible property.
ANSWERS 100% CORRECT!!
,Real property (realty) - ANSWER Tangible property consisting of land, all structures
permanently attached to the land, and whatever is growing on the land.
Personal Property - ANSWER possessions such as jewelry, furniture, and boats
Damage to building by vandalism - Put a fence around the building - ANSWER Loss
Prevention
Home burglary - Install burglar alarm - ANSWER Loss reduction
Tort Damages - ANSWER compensatory damages and punitive damages
Negligence Tort - ANSWER careless neglect, often resulting in injury
Example: Driving while intoxicated and causing an accident
Intentional Tort - ANSWER A deliberate act that causes harm to another person
Example: assault
Strict Liability - ANSWER Inherently dangerous activities or dangerously defective
products that result in injury or harm
Example: Owning a wild animal
At-Fault States or Tort State - ANSWER a driver who causes a car crash is responsible
for compensating the other party or parties for their losses
No-Fault States - ANSWER the driver's personal injury protection (PIP) coverage pays
out after a car accident for lost wages and medical expenses, regardless of fault
Modified no-fault plans - ANSWER These allow injured motorists to collect economic
losses from their plan's PIP benefits. They may then have the ability to sue at-fault
drivers for any economic losses that exceed the no-fault coverage limits and for some
noneconomic losses.
, Add-on plans - ANSWER These add no-fault benefits to auto insurance policies but
place no restrictions on the injured person's right to sue a negligent party for damages.
Named perils coverage - ANSWER insures against causes of loss that are specifically
listed in the policy.
HO-2 Broad Form - ANSWER Provides named perils coverage for dwellings and
personal property and liability coverage.
HO-3 Special Form - ANSWER Provides open perils coverage for dwellings, named
perils coverage for personal property, and liability coverage.
HO-4 Contents Broad Form - ANSWER Often called renters insurance, it's designed for
tenants and other occupants of dwellings or apartments. It provides no dwelling
coverage, but it covers personal property on a named perils basis and provides liability
coverage.
HO-5 Comprehensive Form - ANSWER Provides the broadest coverage of all HO
forms. It covers dwellings and personal property on an open perils basis, and it provides
liability coverage.
HO-6 Unit-Owners Form - ANSWER Designed for owners of residential condominium
units and provides limited dwelling coverage. Named perils personal property coverage
is provided, as is liability coverage.
HO-8 Modified Coverage Form - ANSWER Designed for older buildings with a high
replacement cost compared to market value. Dwellings and personal property coverage
is provided on a more limited named perils basis. Liability coverage is also provided.
Endorsements - ANSWER Many endorsements are available to modify HO policies to
further enable them to meet the specific needs of individuals and families.
Endorsements can increase or decrease limits, add or remove coverages, change
definitions, clarify policy intent, or recognize specific characteristics that require a
premium increase or decrease.
Which one of the following statements regarding assets exposed to loss is true?
A. Real property includes only tangible property.
B. Earthquake damage to a swimming pool is an example of a personal property loss
exposure.
C. Personal property includes only tangible property.
