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AINS 102 EXAM STUDY GUIDE QUESTIONS AND
CORRECT DETAILED SOLUTIONS LATEST UPDATED
VERSION JUST RELEASED
Question: 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
Question: 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.
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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.
Question: 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.
Question: 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
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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
Q:John is a recent homeowner and is considering the insurance coverages he needs for his
home and contents. If damaged by a peril covered by a homeowners policy, which one of the
following would be considered part of John's real property?
Select one:
A. The boat in the driveway
B. The detached garage
C. The desk top computer
D. The hockey net and equipment - ANSWER✔✔B. The detached garage
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Question: 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
Question: 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.
AINS 102 EXAM STUDY GUIDE QUESTIONS AND
CORRECT DETAILED SOLUTIONS LATEST UPDATED
VERSION JUST RELEASED
Question: 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
Question: 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.
, Page 2 of 152
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.
Question: 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.
Question: 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
, Page 3 of 152
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
Q:John is a recent homeowner and is considering the insurance coverages he needs for his
home and contents. If damaged by a peril covered by a homeowners policy, which one of the
following would be considered part of John's real property?
Select one:
A. The boat in the driveway
B. The detached garage
C. The desk top computer
D. The hockey net and equipment - ANSWER✔✔B. The detached garage
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Question: 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
Question: 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.
