AINS 102 ACTUAL TEST PAPER COMPLETE
QUESTIONS AND SOLUTIONS TESTED
ANSWERS
◉ 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.
Answer: 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
◉ Under Section II—Liability Coverage of a homeowners policy all
of the following are the insured's duties after an occurrence,
EXCEPT:
,Select one:
A. Submit a sworn statement of loss for damage to property of
others if making a claim under that coverage
B. Forward legal documents to the insurer
C. Provide claims assistance to the insurer
D. Make voluntary payments to the claimant
Answer: D. Make voluntary payments to the claimant
◉ Under Coverage E—Personal Liability of the HO-3 policy, the
insurer's obligation to defend ends
Select one:
A. When the costs of defense limits are exhausted.
B. When the liability limit for the occurrence is exhausted by
payment of a settlement or judgment.
C. When the cost of defense exceeds the personal liability limits.
D. When policy limits are exhausted by the claim expenses.
Answer: B. When the liability limit for the occurrence is exhausted
by payment of a settlement or judgment.
◉ The medical payments coverage in a homeowners policy covers
certain medical expenses incurred by
Select one:
A. Insureds.
,B. Nonresidents of the insured's household.
C. A person uninvited to the insured's home.
D. Regular household residents other than residence employees.
Answer: B. Nonresidents of the insured's household.
◉ Coverage F—Medical Payments to Others in the homeowners
policy applies to bodily injury to a residence employee in all of the
following situations, EXCEPT:
Select one:
A. The residence employee is away from the insured location but is
working
B. The residence employee is on the insured location and is working
C. The residence employee is on the insured location but is not
working
D. The residence employee is away from the insured location and is
not working
Answer: D. The residence employee is away from the insured
location and is not working
◉ Marcus is buying insurance for his recent home purchase that will
be covered by a DP-3 policy. In reading his policy, which one of the
following will Marcus find is true?
Select one:
, A. Marcus needs to add an endorsement to the DP-3 to cover
personal property damage.
B. The DP-3 provides named perils coverage for the dwelling and
personal property.
C. Marcus wants to add a theft endorsement to his DP-3 to cover
personal property damage caused by burglars.
D. The DP-3 excludes coverage for theft of property that isn't part of
the covered structure.
Answer: D. The DP-3 excludes coverage for theft of property that
isn't part of the covered structure.
◉ Which one of the following is true when comparing the DP-3 and
the HO-3 policies?
Select one:
A. Like the HO-3, the DP-3's Coverage C—Personal Property includes
coverage for money.
B. Coverage A—Dwelling is provided to both the HO-3 and DP-3 at
the residence premises.
C. Like the HO-3, grave markers are covered by the DP-3's Coverage
B—Other Structures.
D. Coverage D and Coverage E in the DP-3 are similar to the HO-3's
Loss of Use Coverage.
Answer: D. Coverage D and Coverage E in the DP-3 are similar to the
HO-3's Loss of Use Coverage.
QUESTIONS AND SOLUTIONS TESTED
ANSWERS
◉ 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.
Answer: 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
◉ Under Section II—Liability Coverage of a homeowners policy all
of the following are the insured's duties after an occurrence,
EXCEPT:
,Select one:
A. Submit a sworn statement of loss for damage to property of
others if making a claim under that coverage
B. Forward legal documents to the insurer
C. Provide claims assistance to the insurer
D. Make voluntary payments to the claimant
Answer: D. Make voluntary payments to the claimant
◉ Under Coverage E—Personal Liability of the HO-3 policy, the
insurer's obligation to defend ends
Select one:
A. When the costs of defense limits are exhausted.
B. When the liability limit for the occurrence is exhausted by
payment of a settlement or judgment.
C. When the cost of defense exceeds the personal liability limits.
D. When policy limits are exhausted by the claim expenses.
Answer: B. When the liability limit for the occurrence is exhausted
by payment of a settlement or judgment.
◉ The medical payments coverage in a homeowners policy covers
certain medical expenses incurred by
Select one:
A. Insureds.
,B. Nonresidents of the insured's household.
C. A person uninvited to the insured's home.
D. Regular household residents other than residence employees.
Answer: B. Nonresidents of the insured's household.
◉ Coverage F—Medical Payments to Others in the homeowners
policy applies to bodily injury to a residence employee in all of the
following situations, EXCEPT:
Select one:
A. The residence employee is away from the insured location but is
working
B. The residence employee is on the insured location and is working
C. The residence employee is on the insured location but is not
working
D. The residence employee is away from the insured location and is
not working
Answer: D. The residence employee is away from the insured
location and is not working
◉ Marcus is buying insurance for his recent home purchase that will
be covered by a DP-3 policy. In reading his policy, which one of the
following will Marcus find is true?
Select one:
, A. Marcus needs to add an endorsement to the DP-3 to cover
personal property damage.
B. The DP-3 provides named perils coverage for the dwelling and
personal property.
C. Marcus wants to add a theft endorsement to his DP-3 to cover
personal property damage caused by burglars.
D. The DP-3 excludes coverage for theft of property that isn't part of
the covered structure.
Answer: D. The DP-3 excludes coverage for theft of property that
isn't part of the covered structure.
◉ Which one of the following is true when comparing the DP-3 and
the HO-3 policies?
Select one:
A. Like the HO-3, the DP-3's Coverage C—Personal Property includes
coverage for money.
B. Coverage A—Dwelling is provided to both the HO-3 and DP-3 at
the residence premises.
C. Like the HO-3, grave markers are covered by the DP-3's Coverage
B—Other Structures.
D. Coverage D and Coverage E in the DP-3 are similar to the HO-3's
Loss of Use Coverage.
Answer: D. Coverage D and Coverage E in the DP-3 are similar to the
HO-3's Loss of Use Coverage.
