AINS 102 Exam Prep Questions with Approved Answers | latest 2024/2025

Patrick's car is 12 years-old and has been driven for over 100,000 miles. He has decided that instead of continuing to pay insurance premium for coverage for property damage to his car, he will put the money aside to save for a new car. Which one of the following risk management techniques is Patrick using? Select one: A. Diversification B. Retention C. Avoidance D. Loss reduction ️ B Which one of the following statements regarding assets exposed to loss is true? Select one: A. Real property includes intangible property. B. Earthquake damage to a swimming pool is an example of a personal property exposure. C. Personal property includes only tangible property. D. Lightning damage to a tree is an example of a real property loss exposure. ️ D Which one of the following is a form of compensatory damages? Select one: A. Punitive damages B. Special damages C. Exemplary damages D. Real damages ️ B All of the following could lead to a liability loss for a family, EXCEPT: Select one: A. A guest slips on an icy sidewalk in front of the family's home and breaks his leg. B. The son, who is 13 years old, throws a rock at a classmate who requires stitches for an injury to his head. C. The father trips on a broom he left lying in the driveway and breaks his arm. D. The daughter, who is 16 years old, sideswipes a neighbor's car and dents its fender while driving her own car. ️ C States A, B, C, and D have addressed the problem of compensating auto accident victims differently. Which one of the following most accurately describes the way that states are handling this issue? Select one: A. State B has enacted a financial responsibility law that requires auto owners to carry auto liability insurance at least equal to certain minimum limits. B. State A, unlike most states, has enacted a compulsory auto insurance law, requiring motorists to provide proof they have some means to pay for auto accident damages. C. State D, a no-fault state, has enacted auto insurance covering accident victims on a first-party basis, usually applying to bodily injury and not to property damage. D. State C, a no-fault state, has enacted auto insurance covering accident victims on a first-party basis, usually applying both to bodily injury and to property damage. ️ C 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. AINS 102 Exam Prep Questions with Approved Answers | latest 2024/2025