Page 1 of 214
AINS 102 EXAM A, B, C AND STUDY GUIDE COMPLETE
500+ QUESTIONS AND CORRECT DETAILED ANSWERS -
JUST RELEASED
AINS 102 EXAM 1
QUESTION: Leslie is insured with a personal auto policy (PIP) with Baines Insurance. She lives in
a state that has a type of no-fault plan in which she, if injured by an auto accident that was the
fault of another person, would be compensated with no-fault benefits but she would not be
restricted in her right to sue that negligent person for damages. This type of no-fault plan is
most specifically a(n)
Select one:
A. Choice no-fault
B. PIP benefit
C. Add-on plan
D. Modified no-fault plan - ANSWER-C. Add-on plan
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. No change in their financial outcome
B. Lost income
C. Increased expenses
1
,Page 2 of 214
D. Reduction in property value - ANSWER-D. Reduction in property value
QUESTION: All of the following are considered personal property, EXCEPT:
A. Revolver
B. Patent
C. Cherry tree
D. Antique piano - ANSWER-C. Cherry tree
QUESTION: 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?
Select one:
A. Damages to the vehicle
B. Two months of lost wages
C. Mental distress compensation
D. Hospital and medical bills - ANSWER-A. Mental distress compensation
2
,Page 3 of 214
QUESTION: Patrick's car is 12 years-old and has been driven for over 100,000 miles. He has
decided that instead of continuing to pay insurance premium for coverage for property damage
to his car, he will put the money aside to save for a new car. Which one of the following risk
management techniques is Patrick using?
Select one:
A. Diversification
B. Avoidance
C. Loss reduction
D. Retention - ANSWER-D. Retention
QUESTION: All of the following could lead to a liability loss for a family, EXCEPT:
Select one:
A. The daughter, who is 16 years old, sideswipes a neighbor's car and dents its fender while
driving her own car.
B. The father trips on a broom he left lying in the driveway and breaks his arm.
C. A guest slips on an icy sidewalk in front of the family's home and breaks his leg.
D. The son, who is 13 years old, throws a rock at a classmate who requires stitches for an injury
to his head. - ANSWER-B. The father trips on a broom he left lying in the driveway and breaks
his arm.
3
, Page 4 of 214
QUESTION: Which one of the following is a form of compensatory damages?
Select one:
A. Exemplary damages
B. Punitive damages
C. Special damages
D. Real damages - ANSWER-C. Special damages
QUESTION: Springton Grocery was a experiencing a frequency of liability claims from customers
slipping and falling near the store entrance on rainy days. The owners decided to purchase
nonslip mats for the areas near the store entrance and exit doors. The mats significantly
reduced the frequency of slip and fall claims. This is an example of which one of the following
risk management techniques?
Select one:
A. Avoidance
B. Transfer
C. Loss prevention
D. Loss reduction - ANSWER-C. Loss prevention
4
AINS 102 EXAM A, B, C AND STUDY GUIDE COMPLETE
500+ QUESTIONS AND CORRECT DETAILED ANSWERS -
JUST RELEASED
AINS 102 EXAM 1
QUESTION: Leslie is insured with a personal auto policy (PIP) with Baines Insurance. She lives in
a state that has a type of no-fault plan in which she, if injured by an auto accident that was the
fault of another person, would be compensated with no-fault benefits but she would not be
restricted in her right to sue that negligent person for damages. This type of no-fault plan is
most specifically a(n)
Select one:
A. Choice no-fault
B. PIP benefit
C. Add-on plan
D. Modified no-fault plan - ANSWER-C. Add-on plan
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. No change in their financial outcome
B. Lost income
C. Increased expenses
1
,Page 2 of 214
D. Reduction in property value - ANSWER-D. Reduction in property value
QUESTION: All of the following are considered personal property, EXCEPT:
A. Revolver
B. Patent
C. Cherry tree
D. Antique piano - ANSWER-C. Cherry tree
QUESTION: 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?
Select one:
A. Damages to the vehicle
B. Two months of lost wages
C. Mental distress compensation
D. Hospital and medical bills - ANSWER-A. Mental distress compensation
2
,Page 3 of 214
QUESTION: Patrick's car is 12 years-old and has been driven for over 100,000 miles. He has
decided that instead of continuing to pay insurance premium for coverage for property damage
to his car, he will put the money aside to save for a new car. Which one of the following risk
management techniques is Patrick using?
Select one:
A. Diversification
B. Avoidance
C. Loss reduction
D. Retention - ANSWER-D. Retention
QUESTION: All of the following could lead to a liability loss for a family, EXCEPT:
Select one:
A. The daughter, who is 16 years old, sideswipes a neighbor's car and dents its fender while
driving her own car.
B. The father trips on a broom he left lying in the driveway and breaks his arm.
C. A guest slips on an icy sidewalk in front of the family's home and breaks his leg.
D. The son, who is 13 years old, throws a rock at a classmate who requires stitches for an injury
to his head. - ANSWER-B. The father trips on a broom he left lying in the driveway and breaks
his arm.
3
, Page 4 of 214
QUESTION: Which one of the following is a form of compensatory damages?
Select one:
A. Exemplary damages
B. Punitive damages
C. Special damages
D. Real damages - ANSWER-C. Special damages
QUESTION: Springton Grocery was a experiencing a frequency of liability claims from customers
slipping and falling near the store entrance on rainy days. The owners decided to purchase
nonslip mats for the areas near the store entrance and exit doors. The mats significantly
reduced the frequency of slip and fall claims. This is an example of which one of the following
risk management techniques?
Select one:
A. Avoidance
B. Transfer
C. Loss prevention
D. Loss reduction - ANSWER-C. Loss prevention
4
