AINS 102 Questions
All of the following items are examples of personal property, EXCEPT:
Select one:
A. Sports equipment
B. Silverware
C. A fishing boat
D. Underground pipes - answerUnderground pipes
Which one of the following statements regarding assets exposed to loss is true?
Select one:
A. Real property includes only tangible property.Correct. All real property is tangible
property having a physical form that can be seen or touched. Personal property can
include intangible property such as patents or copyrights.
B. Earthquake damage to a swimming pool is an example of a personal property loss
exposure.
C. Personal property includes only tangible property.
D. Hail damage to a motor vehicle is an example of a real property loss exposure. -
answerA. Real property includes only tangible property.
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?
Select one:
A. Damages to the vehicle
B. Hospital and medical bills
C. Two months of lost wages
D. Mental distress compensation - answerD. Mental distress compensation
SF Poultry learned that a number of individuals had become ill and hospitalized after
eating chicken from one of its processing plants. The company did not advise the public
or its distributors of the problem, and made no effort to recall the spoiled product. Over
50 individuals ended-up becoming ill from the spoiled chicken. SF Poultry was found
liable in court. In addition to having to pay the medical and hospital bills for the injured
individuals, damages were levied against SF Poultry to punish the company for its
reckless and deceitful actions. These damages that were levied against SF Poultry are
known as
,Select one:
A. General damages.
B. Punitive damages.
C. Special damages.
D. Necessary damages. - answerB. Punitive damages.
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. - answerC.
State regulators require that rates be adequate, reasonable, and not unfairly
discriminatory.
nsurers and other organizations that make insurance available to those who are unable
to obtain coverage from the standard market are collectively called
Select one:
A. A reinsurance facility.
B. The residual market.
C. The secondary market.
D. An automobile insurance plan. - answerB. The residual market.
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 - answerC. HO-5 Comprehensive Form
Rick and Jamie have chosen their first home and now are asking their insurance agent
Franklin to help advise them as to appropriate and affordable insurance coverage.
Which one of the following will most accurately reflect the best coverage choice for Rick
and Jamie?
Select one:
A. As Rick and Jamie are buying and remodeling an older home, Franklin suggests an
HO-8 modified coverage form to provide appropriate coverage for a building with a
comparatively high replacement cost.
, B. As Rick and Jamie will be buying a mansion, Franklin suggests an HO-5
comprehensive form as it provides the highest dollar amounts of any coverage
available.
C. As Rick and Jamie will be renting an apartment for a few years, Franklin suggests an
HO-2 broad form as they will not need any dwelling coverage.
D. As Rick and Jamie are buying a residential condo, Franklin suggests the HO-3
special form as they will be needing limited dwelling cove - answerAs Rick and Jamie
are buying and remodeling an older home, Franklin suggests an HO-8 modified
coverage form to provide appropriate coverage for a building with a comparatively high
replacement cost.
In the auto insurance policy definitions, an eligible private passenger auto, pickup, or
van of which the named insured becomes the owner during the policy period is a
Select one:
A. Temporary substitute vehicle.
B. Newly acquired auto.
C. Replacement auto.
D. Trailer. - answerB. Newly acquired auto.
Phil, a claim representative, was assigned a claim for an auto theft. He needs to
determine the applicable Other Than Collision deductible for the auto. Which one of the
following sections of the Personal Auto Policy will provide Phil with this information?
Select one:
A. Part E—Insured Duties Following an Accident or Loss
B. Endorsements section of the Declarations page
C. Part D—Damage to Your Auto Coverage
D. Schedule of Coverages section of the Declarations page - answerD. Schedule of
Coverages section of the Declarations page
Joel is a delivery driver for XYZ Auto Supply. He usually drives the company van, but
one day, since he only had to deliver a small part, Joel used his own car that is insured
with a Personal Auto Policy (PAP). While doing so, Joel was involved in a two-vehicle
accident and a liability claim was made against Joel and XYZ Auto Supply. Which one
of the following is an insured(s) under Joel's PAP in this situation?
Select one:
A. Joel only
B. None
C. Joel and XYZ Auto Supply
D. XYZ Auto Supply only - answerC. Joel and XYZ Auto Supply
The medical payments coverage in the Personal Auto Policy (PAP) applies to
Select one:
A. Any person occupying a covered auto.
B. Any insured who is also covered by workers compensation for the same accident.
C. Anyone occupying a car not owned by any insured but driven by an insured.
All of the following items are examples of personal property, EXCEPT:
Select one:
A. Sports equipment
B. Silverware
C. A fishing boat
D. Underground pipes - answerUnderground pipes
Which one of the following statements regarding assets exposed to loss is true?
Select one:
A. Real property includes only tangible property.Correct. All real property is tangible
property having a physical form that can be seen or touched. Personal property can
include intangible property such as patents or copyrights.
B. Earthquake damage to a swimming pool is an example of a personal property loss
exposure.
C. Personal property includes only tangible property.
D. Hail damage to a motor vehicle is an example of a real property loss exposure. -
answerA. Real property includes only tangible property.
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?
Select one:
A. Damages to the vehicle
B. Hospital and medical bills
C. Two months of lost wages
D. Mental distress compensation - answerD. Mental distress compensation
SF Poultry learned that a number of individuals had become ill and hospitalized after
eating chicken from one of its processing plants. The company did not advise the public
or its distributors of the problem, and made no effort to recall the spoiled product. Over
50 individuals ended-up becoming ill from the spoiled chicken. SF Poultry was found
liable in court. In addition to having to pay the medical and hospital bills for the injured
individuals, damages were levied against SF Poultry to punish the company for its
reckless and deceitful actions. These damages that were levied against SF Poultry are
known as
,Select one:
A. General damages.
B. Punitive damages.
C. Special damages.
D. Necessary damages. - answerB. Punitive damages.
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. - answerC.
State regulators require that rates be adequate, reasonable, and not unfairly
discriminatory.
nsurers and other organizations that make insurance available to those who are unable
to obtain coverage from the standard market are collectively called
Select one:
A. A reinsurance facility.
B. The residual market.
C. The secondary market.
D. An automobile insurance plan. - answerB. The residual market.
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 - answerC. HO-5 Comprehensive Form
Rick and Jamie have chosen their first home and now are asking their insurance agent
Franklin to help advise them as to appropriate and affordable insurance coverage.
Which one of the following will most accurately reflect the best coverage choice for Rick
and Jamie?
Select one:
A. As Rick and Jamie are buying and remodeling an older home, Franklin suggests an
HO-8 modified coverage form to provide appropriate coverage for a building with a
comparatively high replacement cost.
, B. As Rick and Jamie will be buying a mansion, Franklin suggests an HO-5
comprehensive form as it provides the highest dollar amounts of any coverage
available.
C. As Rick and Jamie will be renting an apartment for a few years, Franklin suggests an
HO-2 broad form as they will not need any dwelling coverage.
D. As Rick and Jamie are buying a residential condo, Franklin suggests the HO-3
special form as they will be needing limited dwelling cove - answerAs Rick and Jamie
are buying and remodeling an older home, Franklin suggests an HO-8 modified
coverage form to provide appropriate coverage for a building with a comparatively high
replacement cost.
In the auto insurance policy definitions, an eligible private passenger auto, pickup, or
van of which the named insured becomes the owner during the policy period is a
Select one:
A. Temporary substitute vehicle.
B. Newly acquired auto.
C. Replacement auto.
D. Trailer. - answerB. Newly acquired auto.
Phil, a claim representative, was assigned a claim for an auto theft. He needs to
determine the applicable Other Than Collision deductible for the auto. Which one of the
following sections of the Personal Auto Policy will provide Phil with this information?
Select one:
A. Part E—Insured Duties Following an Accident or Loss
B. Endorsements section of the Declarations page
C. Part D—Damage to Your Auto Coverage
D. Schedule of Coverages section of the Declarations page - answerD. Schedule of
Coverages section of the Declarations page
Joel is a delivery driver for XYZ Auto Supply. He usually drives the company van, but
one day, since he only had to deliver a small part, Joel used his own car that is insured
with a Personal Auto Policy (PAP). While doing so, Joel was involved in a two-vehicle
accident and a liability claim was made against Joel and XYZ Auto Supply. Which one
of the following is an insured(s) under Joel's PAP in this situation?
Select one:
A. Joel only
B. None
C. Joel and XYZ Auto Supply
D. XYZ Auto Supply only - answerC. Joel and XYZ Auto Supply
The medical payments coverage in the Personal Auto Policy (PAP) applies to
Select one:
A. Any person occupying a covered auto.
B. Any insured who is also covered by workers compensation for the same accident.
C. Anyone occupying a car not owned by any insured but driven by an insured.
