AINS 102 Questions And Answers Latest Update
AINS 102 Questions And
Answers Latest Update.
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 - ✔✔✔ - Underground 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. - ✔✔✔ - A. 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
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,AINS 102 Questions And Answers Latest Update
C. Two months of lost wages
D. Mental distress compensation - ✔✔✔ - D. 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. - ✔✔✔ - B. 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. - ✔✔✔ - C. 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.
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,AINS 102 Questions And Answers Latest Update
B. The residual market.
C. The secondary market.
D. An automobile insurance plan. - ✔✔✔ - B. 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 - ✔✔✔ - C. 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 - ✔✔✔ - 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.
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, AINS 102 Questions And Answers Latest Update
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. - ✔✔✔ - B. 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 - ✔✔✔ - D. 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 - ✔✔✔ - C. Joel and XYZ Auto Supply
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AINS 102 Questions And
Answers Latest Update.
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 - ✔✔✔ - Underground 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. - ✔✔✔ - A. 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
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,AINS 102 Questions And Answers Latest Update
C. Two months of lost wages
D. Mental distress compensation - ✔✔✔ - D. 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. - ✔✔✔ - B. 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. - ✔✔✔ - C. 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.
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,AINS 102 Questions And Answers Latest Update
B. The residual market.
C. The secondary market.
D. An automobile insurance plan. - ✔✔✔ - B. 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 - ✔✔✔ - C. 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 - ✔✔✔ - 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.
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, AINS 102 Questions And Answers Latest Update
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. - ✔✔✔ - B. 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 - ✔✔✔ - D. 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 - ✔✔✔ - C. Joel and XYZ Auto Supply
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