AINS 102 Practice Exam Questions and Correct Answers
1. Inland marine floaters are flexible and can be used to cover both common
and unusual exposures. Inland marine floaters provide the producer with the
opportunity to address and sell coverage for: ANSWER -B. Property not adequately covered
by the homeowners policy.
2. Jack and Linda are meeting with their insurance agent to review their home-
owners and auto policies. The agent has suggested that they add an umbrella
policy. Which one of the following is the best reason the agent will likely provide
for purchasing this coverage? ANSWER -A. To provide increased limits for large jury awards
3. The HO-5 policy is designed to meet the risk management needs of ANSWER -
Owner-oc-
cupants of dwellings who would like the broadest coverage available among ISO's forms for their property.
4. Coverage A—Dwelling of an HO-3 policy applies to which one of the follow-
ing? ANSWER -A. Deck attached to the insured dwelling
5. Which one of the following is considered real property? ANSWER -B. A brick stora
shed
6. Joe keeps a tiger cub as a pet in his fenced-in backyard. The tiger escapes and
bites a neighbor's child who requires stitches. Joe argues that keeping the tiger
violated no law and that he took every precaution to restrain the tiger. Even if
Joe is correct, he might face a claim for damages based upon which one of the
following? ANSWER -A. Absolute liability
7. A claim for money damages because of injury to another party or damage to
another party's property best describes ANSWER -C. A liability loss.
8. Which one of the following statements is true regarding no-fault automobile
insurance? ANSWER -B. Most no-fault laws apply only to bodily injury and not to property damage.
9. Sally has an unendorsed HO-3 policy. Sally's swimming pool was drained by
vandals who opened a drain valve. The water was replaced at a cost of $2,500
to Sally, including labor to deliver and pump the water. The HO-3 policy
ANSWER -A. Does not cover the cost of the replaced water.
10. If a claim is paid under Coverage F—Medical Payments to Others of a home-
owners policy, a policy condition makes it clear that ANSWER -C. The payment is not an
admission of liability by the insured or the insurer.
11. Collision coverage under the Personal Auto Policy (PAP) ANSWER -A. Applies to
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, AINS 102 Practice Exam Questions and Correct Answers
damage to a parked insured vehicle resulting from a passenger in another parked vehicle opening its door.
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1. Inland marine floaters are flexible and can be used to cover both common
and unusual exposures. Inland marine floaters provide the producer with the
opportunity to address and sell coverage for: ANSWER -B. Property not adequately covered
by the homeowners policy.
2. Jack and Linda are meeting with their insurance agent to review their home-
owners and auto policies. The agent has suggested that they add an umbrella
policy. Which one of the following is the best reason the agent will likely provide
for purchasing this coverage? ANSWER -A. To provide increased limits for large jury awards
3. The HO-5 policy is designed to meet the risk management needs of ANSWER -
Owner-oc-
cupants of dwellings who would like the broadest coverage available among ISO's forms for their property.
4. Coverage A—Dwelling of an HO-3 policy applies to which one of the follow-
ing? ANSWER -A. Deck attached to the insured dwelling
5. Which one of the following is considered real property? ANSWER -B. A brick stora
shed
6. Joe keeps a tiger cub as a pet in his fenced-in backyard. The tiger escapes and
bites a neighbor's child who requires stitches. Joe argues that keeping the tiger
violated no law and that he took every precaution to restrain the tiger. Even if
Joe is correct, he might face a claim for damages based upon which one of the
following? ANSWER -A. Absolute liability
7. A claim for money damages because of injury to another party or damage to
another party's property best describes ANSWER -C. A liability loss.
8. Which one of the following statements is true regarding no-fault automobile
insurance? ANSWER -B. Most no-fault laws apply only to bodily injury and not to property damage.
9. Sally has an unendorsed HO-3 policy. Sally's swimming pool was drained by
vandals who opened a drain valve. The water was replaced at a cost of $2,500
to Sally, including labor to deliver and pump the water. The HO-3 policy
ANSWER -A. Does not cover the cost of the replaced water.
10. If a claim is paid under Coverage F—Medical Payments to Others of a home-
owners policy, a policy condition makes it clear that ANSWER -C. The payment is not an
admission of liability by the insured or the insurer.
11. Collision coverage under the Personal Auto Policy (PAP) ANSWER -A. Applies to
1/
11
, AINS 102 Practice Exam Questions and Correct Answers
damage to a parked insured vehicle resulting from a passenger in another parked vehicle opening its door.
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11
