AINS 102 TEST BANK UPDATED COMPLETE
QUESTIONS WITH ACCURATE ANSWERS
●● Real property (realty)
Answer: Tangible property consisting of land, all structures permanently
attached to the land, and whatever is growing on the land.
●● Personal property
Answer: All tangible or intangible property that is not real property.
●● Deductible
Answer: A portion of a covered loss that is not paid by the insurer.
●● Liability loss exposure
Answer: 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
Answer: 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
,Answer: 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
Answer: A monetary award to compensate a victim for losses, such as
pain and suffering, that do not involve specific, measurable expenses.
●● Punitive damages
Answer: 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
Answer: 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
Answer: The branch of the law that imposes penalties for wrongs against
society.
●● Tort
,Answer: A wrongful act or an omission, other than a crime or a breach of
contract, that invades a legally protected right.
●● Negligence
Answer: The failure to exercise the degree of care that a reasonable
person in a similar situation would exercise to avoid harming others.
●● Intentional tort
Answer: 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
Answer: 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
Answer: 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
, Answer: 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
Answer: 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
Answer: 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)
Answer: A network of objects that transmit data to each other and to
central hubs through the internet.
●● First party
Answer: The insured in an insurance contract.
●● Open perils coverage
QUESTIONS WITH ACCURATE ANSWERS
●● Real property (realty)
Answer: Tangible property consisting of land, all structures permanently
attached to the land, and whatever is growing on the land.
●● Personal property
Answer: All tangible or intangible property that is not real property.
●● Deductible
Answer: A portion of a covered loss that is not paid by the insurer.
●● Liability loss exposure
Answer: 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
Answer: 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
,Answer: 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
Answer: A monetary award to compensate a victim for losses, such as
pain and suffering, that do not involve specific, measurable expenses.
●● Punitive damages
Answer: 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
Answer: 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
Answer: The branch of the law that imposes penalties for wrongs against
society.
●● Tort
,Answer: A wrongful act or an omission, other than a crime or a breach of
contract, that invades a legally protected right.
●● Negligence
Answer: The failure to exercise the degree of care that a reasonable
person in a similar situation would exercise to avoid harming others.
●● Intentional tort
Answer: 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
Answer: 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
Answer: 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
, Answer: 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
Answer: 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
Answer: 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)
Answer: A network of objects that transmit data to each other and to
central hubs through the internet.
●● First party
Answer: The insured in an insurance contract.
●● Open perils coverage
