AINS 101 EXAM PREP EXAM
QUESTIONS AND DETAILED
CORRECT ANSWERS; A+ GRADE
STUDY RESOURCE
A claims representative should ask four questions when
processing a property insurance claim. Can you name
them? - correct answer- The four questions
claims representatives should ask are: • Does the insured
have an insurable interest in the property? • Is the
damaged property covered by the policy? • Is the cause of
loss covered by the policy? • Do any additional coverages,
endorsements, or coverage limitations apply?
A homeowners policy is a type of - correct answer-
Personal property-casualty insurance policy.
A liability adjuster must be concerned with specific, out-
of-pocket expenses when evaluating the damages being
claimed. The technical term for such expenses is
A. Measurable damages.
,B. Special damages.
C. General damages.
D. Punitive damages. - correct answer- Special
damages. (The technical term for such expenses is special
damages.)
A liability loss has the following damages:
Medical expenses: $10,000
Damages for disfigurement: $50,000
Damages for pain and suffering: $100,000
What is the amount of general damages?
A. $ 60,000
B. $110,000
C. $150,000
D. $160,000 - correct answer- $150,000 (The
amount of general damages is $150,000. General
damages are for losses that do not have a specific
economic value.)
,A liability loss has the following damages:
Medical expenses: $10,000
Damages for disfigurement: $50,000
Damages for pain and suffering: $100,000
What is the amount of special damages?
A. $10,000
B. $50,000
C. $100,000
D. $160,000 - correct answer- $10,000 (The
amount of special damages is $10,000. Special damages
are for specific, identifiable expenses.)
A person or entity that would suffer a financial loss if
property were damaged has
A. A contractual interest.
B. A discretionary interest.
C. An insurable interest.
, D. A renewable interest. - correct answer- An
insurable interest. (A person or entity that would suffer a
financial loss if property were damaged has an insurable
interest.)
A reinsurance company
A. Assumes loss exposures from a primary insurer.
B. Provides primary insurance for loss exposures that
private insurers are unwilling to provide.
C. Is formed to write all or part of the insurance for a
parent company.
D. Transfers losses to a primary insurer. - correct
answer- Assumes loss exposures from a primary
insurer.
A self-employed tattoo artist wants to make sure she's
covered in case a client sues her. What policy type would
her agent suggest? - correct answer- An agent
would suggest a manuscript policy because her coverage
needs are likely not common to a large number of
insureds.
QUESTIONS AND DETAILED
CORRECT ANSWERS; A+ GRADE
STUDY RESOURCE
A claims representative should ask four questions when
processing a property insurance claim. Can you name
them? - correct answer- The four questions
claims representatives should ask are: • Does the insured
have an insurable interest in the property? • Is the
damaged property covered by the policy? • Is the cause of
loss covered by the policy? • Do any additional coverages,
endorsements, or coverage limitations apply?
A homeowners policy is a type of - correct answer-
Personal property-casualty insurance policy.
A liability adjuster must be concerned with specific, out-
of-pocket expenses when evaluating the damages being
claimed. The technical term for such expenses is
A. Measurable damages.
,B. Special damages.
C. General damages.
D. Punitive damages. - correct answer- Special
damages. (The technical term for such expenses is special
damages.)
A liability loss has the following damages:
Medical expenses: $10,000
Damages for disfigurement: $50,000
Damages for pain and suffering: $100,000
What is the amount of general damages?
A. $ 60,000
B. $110,000
C. $150,000
D. $160,000 - correct answer- $150,000 (The
amount of general damages is $150,000. General
damages are for losses that do not have a specific
economic value.)
,A liability loss has the following damages:
Medical expenses: $10,000
Damages for disfigurement: $50,000
Damages for pain and suffering: $100,000
What is the amount of special damages?
A. $10,000
B. $50,000
C. $100,000
D. $160,000 - correct answer- $10,000 (The
amount of special damages is $10,000. Special damages
are for specific, identifiable expenses.)
A person or entity that would suffer a financial loss if
property were damaged has
A. A contractual interest.
B. A discretionary interest.
C. An insurable interest.
, D. A renewable interest. - correct answer- An
insurable interest. (A person or entity that would suffer a
financial loss if property were damaged has an insurable
interest.)
A reinsurance company
A. Assumes loss exposures from a primary insurer.
B. Provides primary insurance for loss exposures that
private insurers are unwilling to provide.
C. Is formed to write all or part of the insurance for a
parent company.
D. Transfers losses to a primary insurer. - correct
answer- Assumes loss exposures from a primary
insurer.
A self-employed tattoo artist wants to make sure she's
covered in case a client sues her. What policy type would
her agent suggest? - correct answer- An agent
would suggest a manuscript policy because her coverage
needs are likely not common to a large number of
insureds.
