AINS 102: Understanding Personal Insurance
| Updated Questions and Answers | Most
Recent 2026 Edition
• Which one of the following is considered real property?
Select one:
A. An automobile
B. A house
C. Furniture
D. A motorhome -✓✓ B. A house
• All of the following could lead to a liability loss for a family, EXCEPT:
Select one:
A. The father trips on a broom he left lying in the driveway and breaks his arm.
B. The son, who is 13 years old, throws a rock at a classmate who requires stitches
for an injury to his head.
C. A guest slips on an icy sidewalk in front of the family's home and breaks his leg.
D. The daughter, who is 16 years old, sideswipes a neighbor's car and dents its
fender while driving her own car. -✓✓ A. The father trips on a broom he left lying
in the driveway and breaks his arm.
• Which one of the following is a form of compensatory damages?
Select one:
A. Real damages
B. Special damages
C. Punitive damages
D. Exemplary damages -✓✓ B. Special damages
,• 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 -✓✓ B. Tort liability system
• Which one of the following statements is true regarding automobile insurance
rating?
Select one:
A. State regulators require that all insurers offer discounts on auto rates for passive
restraints.
B. Most insurers base automobile rates on primary rating factors and do not
consider any other factors in establishing rates.
C. State regulators require that rates be adequate, reasonable, and not unfairly
discriminatory.
D. Drivers with lower-than-average loss exposure are charged higher rates. -✓✓ C.
State regulators require that rates be adequate, reasonable, and not unfairly
discriminatory.
• All of the following are true of the HO-3 Special Form, EXCEPT:
Select one:
A. The HO-3 is designed for owners who occupy their dwelling or choose to rent
it.
B. The HO-3 meets the property and liability coverage needs of most families.
,C. The HO-3 is typically used as a basis for understanding other HO coverage
forms.
D. The HO-3 can be modified for special needs through available endorsements. -
✓✓ A. The HO-3 is designed for owners who occupy their dwelling or choose to
rent it.
• 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 -✓✓ C. HO-5 Comprehensive Form
• The Agreement and Definitions page of the Personal Auto Policy (PAP) includes
Select one:
A. The name of the insurer issuing the policy.
B. A general agreement stating the insurer's duty to pay damages and defense costs
subject to the terms of the policy.
C. A general agreement stating that the insurer is providing the coverage subject to
payment of premium and to the terms of the policy.
D. The name and mailing address of the insured. -✓✓ C. A general agreement
stating that the insurer is providing the coverage subject to payment of premium
and to the terms of the policy.
• In the Personal Auto Policy (PAP) definitions, "Your covered auto" includes all
of the following classes of vehicles, EXCEPT:
, Select one:
A. A trailer owned by the insured
B. A temporary substitute auto or trailer
C. A newly acquired auto
D. A trailer rented by the insured -✓✓ D. A trailer rented by the insured
• 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 one of the
following is the correct reason why Sue's PAP will not pay the claim for property
damage to the other car?
Select one:
A. Because the Part A insuring agreement excludes intentional harm.
B. Because Sue's PAP only covers property damage to her car.
C. Because Brendan, not Sue, was driving the car.
D. Because Brendan's PAP should cover the claim. -✓✓ A. Because the Part A
insuring agreement excludes intentional harm.
• 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.
| Updated Questions and Answers | Most
Recent 2026 Edition
• Which one of the following is considered real property?
Select one:
A. An automobile
B. A house
C. Furniture
D. A motorhome -✓✓ B. A house
• All of the following could lead to a liability loss for a family, EXCEPT:
Select one:
A. The father trips on a broom he left lying in the driveway and breaks his arm.
B. The son, who is 13 years old, throws a rock at a classmate who requires stitches
for an injury to his head.
C. A guest slips on an icy sidewalk in front of the family's home and breaks his leg.
D. The daughter, who is 16 years old, sideswipes a neighbor's car and dents its
fender while driving her own car. -✓✓ A. The father trips on a broom he left lying
in the driveway and breaks his arm.
• Which one of the following is a form of compensatory damages?
Select one:
A. Real damages
B. Special damages
C. Punitive damages
D. Exemplary damages -✓✓ B. Special damages
,• 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 -✓✓ B. Tort liability system
• Which one of the following statements is true regarding automobile insurance
rating?
Select one:
A. State regulators require that all insurers offer discounts on auto rates for passive
restraints.
B. Most insurers base automobile rates on primary rating factors and do not
consider any other factors in establishing rates.
C. State regulators require that rates be adequate, reasonable, and not unfairly
discriminatory.
D. Drivers with lower-than-average loss exposure are charged higher rates. -✓✓ C.
State regulators require that rates be adequate, reasonable, and not unfairly
discriminatory.
• All of the following are true of the HO-3 Special Form, EXCEPT:
Select one:
A. The HO-3 is designed for owners who occupy their dwelling or choose to rent
it.
B. The HO-3 meets the property and liability coverage needs of most families.
,C. The HO-3 is typically used as a basis for understanding other HO coverage
forms.
D. The HO-3 can be modified for special needs through available endorsements. -
✓✓ A. The HO-3 is designed for owners who occupy their dwelling or choose to
rent it.
• 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 -✓✓ C. HO-5 Comprehensive Form
• The Agreement and Definitions page of the Personal Auto Policy (PAP) includes
Select one:
A. The name of the insurer issuing the policy.
B. A general agreement stating the insurer's duty to pay damages and defense costs
subject to the terms of the policy.
C. A general agreement stating that the insurer is providing the coverage subject to
payment of premium and to the terms of the policy.
D. The name and mailing address of the insured. -✓✓ C. A general agreement
stating that the insurer is providing the coverage subject to payment of premium
and to the terms of the policy.
• In the Personal Auto Policy (PAP) definitions, "Your covered auto" includes all
of the following classes of vehicles, EXCEPT:
, Select one:
A. A trailer owned by the insured
B. A temporary substitute auto or trailer
C. A newly acquired auto
D. A trailer rented by the insured -✓✓ D. A trailer rented by the insured
• 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 one of the
following is the correct reason why Sue's PAP will not pay the claim for property
damage to the other car?
Select one:
A. Because the Part A insuring agreement excludes intentional harm.
B. Because Sue's PAP only covers property damage to her car.
C. Because Brendan, not Sue, was driving the car.
D. Because Brendan's PAP should cover the claim. -✓✓ A. Because the Part A
insuring agreement excludes intentional harm.
• 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.
