AINS 102 UPDATED PT 1QUESTIONS AND ANSWERS
1. Which one of the following is considered real property?
Select one:
A. An automobile
B. A house
C. Furniture
D. A motorhome Answer -B
2. The Davis family suffered extensive fire damage to its home and was tem-
porarily unable to inhabit it. The family was forced to rent a hotel room while
its home was under repair. The cost incurred to rent the hotel room is referred
to as which one of the following outcomes of loss?
Select one:
A. Lost income
B. Increased expenses
C. Reduction in value of property
D. Special damages Answer -B
3. 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. Loss prevention
B. Transfer
C. Avoidance
D. Loss reduction Answer -A
4. 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
, AINS 102 UPDATED PT 1QUESTIONS AND ANSWERS
damages?
Select one:
A. Damages to the vehicle
B. Mental distress compensation
C. Hospital and medical bills
D. Two months of lost wages Answer -B
5. Under the tort liability system, injured accident victims must prove that
Select one:
A. Another party was at fault before they can collect damages.
B. They are unable to purchase insurance from another source before they can
collect damages.
C. The insurance limits they have purchased are equal to or greater than the
state minimum limits before they can collect damages.
D. They have met the financial responsibility laws of the state before they can
collect damages. Answer -A
6. 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
7. 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 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
, AINS 102 UPDATED PT 1QUESTIONS AND ANSWERS
8. Which one of the following is true regarding the use of technology in home
risk management?
Select one:
A. Smart devices in the home have reaffirmed the need for existing claims data
to assess risk.
B. Data gathered from sensors is used by insurers for personalized pricing and
claims handling.
C. Technology is more prevalent, abundant, and useful in homes than in auto-
motive environments.
D. Sensors are generally regarded as useful in loss prevention, but not in loss
reduction. Answer -B
9. Vivian is an auto claims adjuster. She wanted to make sure that the vehicle
identification number (VIN) of the damaged vehicle matched the VIN shown
on the Personal Auto Policy (PAP), the VIN can be found
Select one:
A. On the Declarations page.
B. On the state endorsements.
C. In the Insuring Agreement.
D. In the definitions section. Answer -A
10. All of the following will be shown under the Schedule of Coverages section
on the Declarations page of the Personal Auto Policy (PAP), EXCEPT:
Select one:
A. Limits of insurance
B. Deductibles
C. Premiums
D. Endorsements Answer -D
11. Brendan and Sue were on a road trip along the coast of California, using Sue's
car. One day they were stuck in terrible traffic while Brendan was driving. He
became angry when another car merged in front of him. A few minutes later,
Brendan deliberately rammed into the car that had cut in front of him, causing
property damage to the other car. Both Brendan and Sure were surprised to
learn that Sue's Personal Auto Policy (PAP) would not cover the claim. Which
1. Which one of the following is considered real property?
Select one:
A. An automobile
B. A house
C. Furniture
D. A motorhome Answer -B
2. The Davis family suffered extensive fire damage to its home and was tem-
porarily unable to inhabit it. The family was forced to rent a hotel room while
its home was under repair. The cost incurred to rent the hotel room is referred
to as which one of the following outcomes of loss?
Select one:
A. Lost income
B. Increased expenses
C. Reduction in value of property
D. Special damages Answer -B
3. 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. Loss prevention
B. Transfer
C. Avoidance
D. Loss reduction Answer -A
4. 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
, AINS 102 UPDATED PT 1QUESTIONS AND ANSWERS
damages?
Select one:
A. Damages to the vehicle
B. Mental distress compensation
C. Hospital and medical bills
D. Two months of lost wages Answer -B
5. Under the tort liability system, injured accident victims must prove that
Select one:
A. Another party was at fault before they can collect damages.
B. They are unable to purchase insurance from another source before they can
collect damages.
C. The insurance limits they have purchased are equal to or greater than the
state minimum limits before they can collect damages.
D. They have met the financial responsibility laws of the state before they can
collect damages. Answer -A
6. 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
7. 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 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
, AINS 102 UPDATED PT 1QUESTIONS AND ANSWERS
8. Which one of the following is true regarding the use of technology in home
risk management?
Select one:
A. Smart devices in the home have reaffirmed the need for existing claims data
to assess risk.
B. Data gathered from sensors is used by insurers for personalized pricing and
claims handling.
C. Technology is more prevalent, abundant, and useful in homes than in auto-
motive environments.
D. Sensors are generally regarded as useful in loss prevention, but not in loss
reduction. Answer -B
9. Vivian is an auto claims adjuster. She wanted to make sure that the vehicle
identification number (VIN) of the damaged vehicle matched the VIN shown
on the Personal Auto Policy (PAP), the VIN can be found
Select one:
A. On the Declarations page.
B. On the state endorsements.
C. In the Insuring Agreement.
D. In the definitions section. Answer -A
10. All of the following will be shown under the Schedule of Coverages section
on the Declarations page of the Personal Auto Policy (PAP), EXCEPT:
Select one:
A. Limits of insurance
B. Deductibles
C. Premiums
D. Endorsements Answer -D
11. Brendan and Sue were on a road trip along the coast of California, using Sue's
car. One day they were stuck in terrible traffic while Brendan was driving. He
became angry when another car merged in front of him. A few minutes later,
Brendan deliberately rammed into the car that had cut in front of him, causing
property damage to the other car. Both Brendan and Sure were surprised to
learn that Sue's Personal Auto Policy (PAP) would not cover the claim. Which
