AINS 102 CORRECT FINAL EXAMS QUESTIONS AND
ANSWERS RATED A+
✔✔Miguel, an insured has a Personal Auto Policy (PAP) that includes medical
payments coverage. The insured crashed his car while trying to be the first car to pull
away from a stop at a red light when the light turned green. In this scenario, Miguel
Select one:
A. Would be eligible for medical payments under the Personal Auto Policy (PAP)
because he wasn't caught speeding at the scene.
B. Would not be eligible for medical payments under the Personal Auto Policy (PAP) if
he was found at fault because of this accident.
C. Would be eligible for medical payments under the Personal Auto Policy (PAP) as the
named insured and an occupant of a covered auto.
D. Would not be eligible for medical payments under the Personal Auto Policy (PAP)
because he is being reckless. - ✔✔C. Would be eligible for medical payments under the
Personal Auto Policy (PAP) as the named insured and an occupant of a covered auto.
✔✔The Part B—Medical Payments Coverage of the Personal Auto Policy (PAP)
contains an Other Insurance provision. If two automobile policies from different insurers
cover the same owned vehicle,
Select one:
A. The first insurer to receive notice of the claim becomes primarily liable.
B. The courts will decide how to assess the payment amounts.
C. The insurer issuing the policy with the higher limits of liability will make the
determination.
D. The Other Insurance provision will address how to address the particular situation. -
✔✔D. The Other Insurance provision will address how to address the particular
situation.
✔✔Under the uninsured motorists (UM) coverage in the Personal Auto Policy (PAP),
the insurer agrees to pay damages that the insured is legally entitled to recover from the
owner or operator of an uninsured motor vehicle. These damages are best identified as
which one of the following?
,Select one:
A. Lost wages
B. Rehabilitation expenses
C. Medical expenses
D. Compensatory damages - ✔✔D. Compensatory damages
✔✔Under the uninsured motorists (UM) coverage in the Personal Auto Policy (PAP),
the insurer agrees to pay damages that the insured is legally entitled to recover from the
owner or operator of an uninsured motor vehicle. These damages are best identified as
which one of the following?
Select one:
A. Lost wages
B. Rehabilitation expenses
C. Medical expenses
D. Compensatory damages - ✔✔B. Denied because coverage under these
circumstances is excluded.
✔✔Which one of the following causes of loss is covered under the other than collision
(OTC) section of the Personal Auto Policy (PAP)?
Select one:
A. Hitting another car
B. Overturn from the driver losing control
C. Falling objects
D. Hitting a tree - ✔✔C. Falling objects
✔✔The Personal Auto Policy (PAP) provides physical damage coverage for a covered
auto that is damaged when the car's driver loses control and overturns the car on a
sharp curve. This coverage is called
Select one:
A. Comprehensive coverage.
B. Other than collision coverage.
C. Falling object coverage.
D. Collision coverage. - ✔✔D. Collision coverage.
✔✔Tricia Barton has a personal auto policy providing collision coverage (with a $500
deductible) and other than collision coverage (with a $250 deductible) on her Chrysler
sedan. Late one night, Tricia was responsible for an accident where she ran into an
SUV and caused damage to both vehicles. She submitted a claim to her insurer for the
$5,000 bill to repair her sedan. Assuming she had adequate limits and her insurer
agreed to pay the claim, what amount will her insurer pay under Part D—Damage to
Your Auto?
Select one:
A. $4,500
B. $4,750
C. $5,000
, D. $5,250 - ✔✔A. $4,500
✔✔Richard insures his house under a HO-3 policy. During a recent windstorm, a tree
fell on the attached garage causing structural damage. Which one of the following
Section I coverages of Richard's homeowners policy would cover the damage to the
attached garage?
Select one:
A. Coverage A—Dwelling
B. Coverage B—Other Structures
C. Coverage C—Personal Property
D. Coverage D—Loss of Use - ✔✔A. Coverage A—Dwelling
✔✔David and Colleen insure their house under a HO-3 policy. One evening, while they
were entertaining some friends at their home, the railing of the deck collapsed and one
of their guests fell to the ground below. The individual suffered a serious leg injury which
required surgery and two days in the hospital. Which one of the following coverages
under David and Colleen's HO-3 policy would cover the expenses for the injured
individual?
Select one:
A. Coverage A—Dwelling
B. Coverage B—Other Structures
C. Coverage D—Loss of Use
D. Coverage E—Personal Liability - ✔✔D. Coverage E—Personal Liability
✔✔The HO-3 policy provides open perils coverage rather than named perils coverage
for which one of the following?
Select one:
A. Coverage A—Dwelling only
B. Coverage A—Dwelling and Coverage B—Other Structures
C. Coverage C—Personal Property
D. Coverage D—Loss of Use - ✔✔B. Coverage A—Dwelling and Coverage B—Other
Structures
✔✔Which one of the following statements is correct regarding coverage under Section I,
Coverage D—Loss of Use of an HO-3 policy.
Select one:
A. Coverage is provided only when civil authority prohibits use of the premises.
B. Additional Living Expenses and Fair Rental Value have separate coverage limits.
C. Coverage is limited to 30 days or the time required to repair or replace the residence
premises, whichever is shorter.
D. A claim may be filed when the residence premises are unlivable because of a
covered cause of loss and there has been an increase in living expenses. - ✔✔D. A
claim may be filed when the residence premises are unlivable because of a covered
cause of loss and there has been an increase in living expense
ANSWERS RATED A+
✔✔Miguel, an insured has a Personal Auto Policy (PAP) that includes medical
payments coverage. The insured crashed his car while trying to be the first car to pull
away from a stop at a red light when the light turned green. In this scenario, Miguel
Select one:
A. Would be eligible for medical payments under the Personal Auto Policy (PAP)
because he wasn't caught speeding at the scene.
B. Would not be eligible for medical payments under the Personal Auto Policy (PAP) if
he was found at fault because of this accident.
C. Would be eligible for medical payments under the Personal Auto Policy (PAP) as the
named insured and an occupant of a covered auto.
D. Would not be eligible for medical payments under the Personal Auto Policy (PAP)
because he is being reckless. - ✔✔C. Would be eligible for medical payments under the
Personal Auto Policy (PAP) as the named insured and an occupant of a covered auto.
✔✔The Part B—Medical Payments Coverage of the Personal Auto Policy (PAP)
contains an Other Insurance provision. If two automobile policies from different insurers
cover the same owned vehicle,
Select one:
A. The first insurer to receive notice of the claim becomes primarily liable.
B. The courts will decide how to assess the payment amounts.
C. The insurer issuing the policy with the higher limits of liability will make the
determination.
D. The Other Insurance provision will address how to address the particular situation. -
✔✔D. The Other Insurance provision will address how to address the particular
situation.
✔✔Under the uninsured motorists (UM) coverage in the Personal Auto Policy (PAP),
the insurer agrees to pay damages that the insured is legally entitled to recover from the
owner or operator of an uninsured motor vehicle. These damages are best identified as
which one of the following?
,Select one:
A. Lost wages
B. Rehabilitation expenses
C. Medical expenses
D. Compensatory damages - ✔✔D. Compensatory damages
✔✔Under the uninsured motorists (UM) coverage in the Personal Auto Policy (PAP),
the insurer agrees to pay damages that the insured is legally entitled to recover from the
owner or operator of an uninsured motor vehicle. These damages are best identified as
which one of the following?
Select one:
A. Lost wages
B. Rehabilitation expenses
C. Medical expenses
D. Compensatory damages - ✔✔B. Denied because coverage under these
circumstances is excluded.
✔✔Which one of the following causes of loss is covered under the other than collision
(OTC) section of the Personal Auto Policy (PAP)?
Select one:
A. Hitting another car
B. Overturn from the driver losing control
C. Falling objects
D. Hitting a tree - ✔✔C. Falling objects
✔✔The Personal Auto Policy (PAP) provides physical damage coverage for a covered
auto that is damaged when the car's driver loses control and overturns the car on a
sharp curve. This coverage is called
Select one:
A. Comprehensive coverage.
B. Other than collision coverage.
C. Falling object coverage.
D. Collision coverage. - ✔✔D. Collision coverage.
✔✔Tricia Barton has a personal auto policy providing collision coverage (with a $500
deductible) and other than collision coverage (with a $250 deductible) on her Chrysler
sedan. Late one night, Tricia was responsible for an accident where she ran into an
SUV and caused damage to both vehicles. She submitted a claim to her insurer for the
$5,000 bill to repair her sedan. Assuming she had adequate limits and her insurer
agreed to pay the claim, what amount will her insurer pay under Part D—Damage to
Your Auto?
Select one:
A. $4,500
B. $4,750
C. $5,000
, D. $5,250 - ✔✔A. $4,500
✔✔Richard insures his house under a HO-3 policy. During a recent windstorm, a tree
fell on the attached garage causing structural damage. Which one of the following
Section I coverages of Richard's homeowners policy would cover the damage to the
attached garage?
Select one:
A. Coverage A—Dwelling
B. Coverage B—Other Structures
C. Coverage C—Personal Property
D. Coverage D—Loss of Use - ✔✔A. Coverage A—Dwelling
✔✔David and Colleen insure their house under a HO-3 policy. One evening, while they
were entertaining some friends at their home, the railing of the deck collapsed and one
of their guests fell to the ground below. The individual suffered a serious leg injury which
required surgery and two days in the hospital. Which one of the following coverages
under David and Colleen's HO-3 policy would cover the expenses for the injured
individual?
Select one:
A. Coverage A—Dwelling
B. Coverage B—Other Structures
C. Coverage D—Loss of Use
D. Coverage E—Personal Liability - ✔✔D. Coverage E—Personal Liability
✔✔The HO-3 policy provides open perils coverage rather than named perils coverage
for which one of the following?
Select one:
A. Coverage A—Dwelling only
B. Coverage A—Dwelling and Coverage B—Other Structures
C. Coverage C—Personal Property
D. Coverage D—Loss of Use - ✔✔B. Coverage A—Dwelling and Coverage B—Other
Structures
✔✔Which one of the following statements is correct regarding coverage under Section I,
Coverage D—Loss of Use of an HO-3 policy.
Select one:
A. Coverage is provided only when civil authority prohibits use of the premises.
B. Additional Living Expenses and Fair Rental Value have separate coverage limits.
C. Coverage is limited to 30 days or the time required to repair or replace the residence
premises, whichever is shorter.
D. A claim may be filed when the residence premises are unlivable because of a
covered cause of loss and there has been an increase in living expenses. - ✔✔D. A
claim may be filed when the residence premises are unlivable because of a covered
cause of loss and there has been an increase in living expense
