AINS 102: Understanding Personal Insurance | Most
Recent Questions and Answers | 2026 Update | Exam
Review Pack
• Real property (realty) -✓✓ Tangible property consisting of land, all structures
permanently attached to the land, and whatever is growing on the land.
• Personal property -✓✓ All tangible or intangible property that is not real
property.
• Deductible -✓✓ A portion of a covered loss that is not paid by the insurer.
• Liability loss exposure -✓✓ Any condition or situation that presents the
possibility of a claim alleging legal responsibility of a person or business for injury
or damage suffered by another party.
• Damages -✓✓ Money claimed by, or a monetary award to, a party who has
suffered loss or injury for which another party is legally responsible.
• Special damages -✓✓ A form of compensatory damages that awards a sum of
money for specific, identifiable expenses associated with the injured person's loss,
such as medical expenses or lost wages.
• General damages -✓✓ A monetary award to compensate a victim for losses, such
as pain and suffering, that do not involve specific, measurable expenses.
• Punitive damages -✓✓ A payment awarded by a court to punish a defendant for a
reckless, malicious, or deceitful act to deter similar conduct; the award need not
bear any relation to a party's actual damages.
,• Civil law -✓✓ A classification of law that applies to legal matters not governed
by criminal law and that protects rights and provides remedies for breaches of
duties owed to others.
• Criminal law -✓✓ The branch of the law that imposes penalties for wrongs
against society.
• Tort -✓✓ A wrongful act or an omission, other than a crime or a breach of
contract, that invades a legally protected right.
• Negligence -✓✓ The failure to exercise the degree of care that a reasonable
person in a similar situation would exercise to avoid harming others.
• Intentional tort -✓✓ A tort committed by a person who foresees (or should be
able to foresee) that his or her act will harm another person.
• Strict liability -✓✓ Liability imposed by a court or by a statute in the absence of
fault when harm results from activities or conditions that are extremely dangerous,
unnatural, ultrahazardous, extraordinary, abnormal, or inappropriate.
• Compulsory auto insurance law -✓✓ Law that requires the owners or operators of
automobiles to carry automobile liability insurance at least equal to certain
minimum limits before the vehicle can be licensed or registered.
• Financial responsibility laws -✓✓ Law enacted to ensure that motorists have the
financial ability to pay for any property damage or bodily injury they might cause
as a result of driving or owning an auto.
,• Personal injury protection (PIP) coverage -✓✓ Coverage that pays benefits,
regardless of fault, for medical expense, income loss, and other benefits, resulting
from bodily injury to occupants of a covered auto.
• Residual market -✓✓ The term referring collectively to insurers and other
organizations that make insurance available through a shared risk mechanism to
those who cannot obtain coverage in the admitted market.
• Internet of Things (IoT) -✓✓ A network of objects that transmit data to each
other and to central hubs through the internet.
• First party -✓✓ The insured in an insurance contract.
• Open perils coverage -✓✓ A type of policy or coverage that insures against risks
of direct physical loss except for those specifically excluded or limited by the
policy.
• Named perils coverage -✓✓ An insurance policy in which the covered causes of
loss are listed or "named" in the policy.
• D. Underground pipes -✓✓ All of the following items are examples of personal
property, EXCEPT:
A. Sports equipment
B. Silverware
C. A fishing boat
D. Underground pipes
, • C. The detached garage -✓✓ John is a recent homeowner and is considering the
insurance coverages he needs for his home and contents. If damaged by a peril
covered by a homeowners policy, which one of the following would be considered
part of John's real property?
A. The desk top computer
B. The boat in the driveway
C. The detached garage
D. The hockey net and equipment
• C. Intentional tort -✓✓ Paul was charged with assault and battery after he
punched and injured his neighbor Tom, who repeatedly walked his dog on Paul's
property. Which one of the following types of tort does this represent?
A. Strict liability
B. Negligence
C. Intentional tort
D. Exemplary tort
• D. Mental distress compensation -✓✓ 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?
A. Damages to the vehicle
B. Hospital and medical bills
C. Two months of lost wages
D. Mental distress compensation
Recent Questions and Answers | 2026 Update | Exam
Review Pack
• Real property (realty) -✓✓ Tangible property consisting of land, all structures
permanently attached to the land, and whatever is growing on the land.
• Personal property -✓✓ All tangible or intangible property that is not real
property.
• Deductible -✓✓ A portion of a covered loss that is not paid by the insurer.
• Liability loss exposure -✓✓ Any condition or situation that presents the
possibility of a claim alleging legal responsibility of a person or business for injury
or damage suffered by another party.
• Damages -✓✓ Money claimed by, or a monetary award to, a party who has
suffered loss or injury for which another party is legally responsible.
• Special damages -✓✓ A form of compensatory damages that awards a sum of
money for specific, identifiable expenses associated with the injured person's loss,
such as medical expenses or lost wages.
• General damages -✓✓ A monetary award to compensate a victim for losses, such
as pain and suffering, that do not involve specific, measurable expenses.
• Punitive damages -✓✓ A payment awarded by a court to punish a defendant for a
reckless, malicious, or deceitful act to deter similar conduct; the award need not
bear any relation to a party's actual damages.
,• Civil law -✓✓ A classification of law that applies to legal matters not governed
by criminal law and that protects rights and provides remedies for breaches of
duties owed to others.
• Criminal law -✓✓ The branch of the law that imposes penalties for wrongs
against society.
• Tort -✓✓ A wrongful act or an omission, other than a crime or a breach of
contract, that invades a legally protected right.
• Negligence -✓✓ The failure to exercise the degree of care that a reasonable
person in a similar situation would exercise to avoid harming others.
• Intentional tort -✓✓ A tort committed by a person who foresees (or should be
able to foresee) that his or her act will harm another person.
• Strict liability -✓✓ Liability imposed by a court or by a statute in the absence of
fault when harm results from activities or conditions that are extremely dangerous,
unnatural, ultrahazardous, extraordinary, abnormal, or inappropriate.
• Compulsory auto insurance law -✓✓ Law that requires the owners or operators of
automobiles to carry automobile liability insurance at least equal to certain
minimum limits before the vehicle can be licensed or registered.
• Financial responsibility laws -✓✓ Law enacted to ensure that motorists have the
financial ability to pay for any property damage or bodily injury they might cause
as a result of driving or owning an auto.
,• Personal injury protection (PIP) coverage -✓✓ Coverage that pays benefits,
regardless of fault, for medical expense, income loss, and other benefits, resulting
from bodily injury to occupants of a covered auto.
• Residual market -✓✓ The term referring collectively to insurers and other
organizations that make insurance available through a shared risk mechanism to
those who cannot obtain coverage in the admitted market.
• Internet of Things (IoT) -✓✓ A network of objects that transmit data to each
other and to central hubs through the internet.
• First party -✓✓ The insured in an insurance contract.
• Open perils coverage -✓✓ A type of policy or coverage that insures against risks
of direct physical loss except for those specifically excluded or limited by the
policy.
• Named perils coverage -✓✓ An insurance policy in which the covered causes of
loss are listed or "named" in the policy.
• D. Underground pipes -✓✓ All of the following items are examples of personal
property, EXCEPT:
A. Sports equipment
B. Silverware
C. A fishing boat
D. Underground pipes
, • C. The detached garage -✓✓ John is a recent homeowner and is considering the
insurance coverages he needs for his home and contents. If damaged by a peril
covered by a homeowners policy, which one of the following would be considered
part of John's real property?
A. The desk top computer
B. The boat in the driveway
C. The detached garage
D. The hockey net and equipment
• C. Intentional tort -✓✓ Paul was charged with assault and battery after he
punched and injured his neighbor Tom, who repeatedly walked his dog on Paul's
property. Which one of the following types of tort does this represent?
A. Strict liability
B. Negligence
C. Intentional tort
D. Exemplary tort
• D. Mental distress compensation -✓✓ 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?
A. Damages to the vehicle
B. Hospital and medical bills
C. Two months of lost wages
D. Mental distress compensation
