AINS 102 Ch 3 EXAM QUESTIONS WITH
CORRECT ANSWERS 2025/2026 A+
GRADED 100% VERIFIED
Steve and Amy were about to purchase their first home. During the process, they were
advised that they needed to purchase a HO-3 insurance policy. The HO-3 policy would
provide Steve and Amy with coverage for all of the following, EXCEPT:
Select one:
A. Their cars
B. Personal Liability
C. The house
D. The contents of the house - ANS- A. Their cars
David and Colleen insure their house under a HO-3 policy. One evening, while they were
entertaining some friends at their home, the railing of the deck collapsed and one of their
guests fell to the ground below. The individual suffered a serious leg injury which
required surgery and two days in the hospital. Which one of the following coverages
under David and Colleen's HO-3 policy would cover the expenses for the injured
individual?
Select one:
A. Coverage A—Dwelling
B. Coverage B—Other Structures
C. Coverage D—Loss of Use
D. Coverage E—Personal Liability - ANS- D. Coverage E—Personal Liability
Nicholas and Laura own property in the country which is insured under an HO-3 policy.
There is a cottage, where they reside, and several detached structures on the property
including a greenhouse, a pool house, and a storage shed. Under the HO-3, Coverage
A—Dwelling applies to
Select one:
A. Any of the structures used by Nicholas, Laura, or any family member as a residential
dwelling.
B. None of the structures.
C. The cottage, which is the structure that is their residence premises and is listed as
such on the policy's declarations.
D. All of the structures. - ANS- C. The cottage, which is the structure that is their
residence premises and is listed as such on the policy's declarations.
, Larry owns and occupies a home with a detached garage that is insured under an HO-3
policy. Due to the cold winters, Larry has decided to connect the garage to his home with
an enclosed breezeway, permanently connecting the dwelling and the garage with a
connected roof, to avoid going outside to get to and from his automobile. Which one of
the following is true regarding Larry's homeowner policy coverage?
Select one:
A. Larry should reduce his Coverage B limit for the value of the garage.
B. Larry may need to increase his Coverage A limit for the value of the garage and
breezeway.
C. Larry should consider the breezeway a "fixture" to be covered under Coverage A of
the policy.
D. Larry should include the cost of the land the garage is on for the Coverage A limit. -
ANS- B. Larry may need to increase his Coverage A limit for the value of the garage and
breezeway.
Tomas has an HO-3 policy covering his home. A neighbor jumped Tomas's fence to use
his yard as a shortcut to a store, tripped over a small shovel left on the lawn, and was
injured. The neighbor sued Tomas. Tomas's insurer defended and won the lawsuit on the
theory that the neighbor was a trespasser to whom no duty was owed by Tomas. The
insurer's defense included $20,000 in legal fees. Who is responsible for these fees?
Select one:
A. Tomas and the insurer share responsibility for the legal fees.
B. Tomas's HO-3 insurer is responsible for the legal fees.
C. Tomas is, because liability coverage is not triggered absent a finding of liability.
D. The insurer is responsible for the legal fees only if Tomas is not able to pay them. -
ANS- B. Tomas's HO-3 insurer is responsible for the legal fees.
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 cost of defense exceeds the personal liability limits.
C. When policy limits are exhausted by the claim expenses.
D. When the liability limit for the occurrence is exhausted by payment of a settlement or
judgment. - ANS- D. When the liability limit for the occurrence is exhausted by payment
of a settlement or judgment.
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 on the insured location and is working
B. The residence employee is away from the insured location and is not working
C. The residence employee is on the insured location but is not working
CORRECT ANSWERS 2025/2026 A+
GRADED 100% VERIFIED
Steve and Amy were about to purchase their first home. During the process, they were
advised that they needed to purchase a HO-3 insurance policy. The HO-3 policy would
provide Steve and Amy with coverage for all of the following, EXCEPT:
Select one:
A. Their cars
B. Personal Liability
C. The house
D. The contents of the house - ANS- A. Their cars
David and Colleen insure their house under a HO-3 policy. One evening, while they were
entertaining some friends at their home, the railing of the deck collapsed and one of their
guests fell to the ground below. The individual suffered a serious leg injury which
required surgery and two days in the hospital. Which one of the following coverages
under David and Colleen's HO-3 policy would cover the expenses for the injured
individual?
Select one:
A. Coverage A—Dwelling
B. Coverage B—Other Structures
C. Coverage D—Loss of Use
D. Coverage E—Personal Liability - ANS- D. Coverage E—Personal Liability
Nicholas and Laura own property in the country which is insured under an HO-3 policy.
There is a cottage, where they reside, and several detached structures on the property
including a greenhouse, a pool house, and a storage shed. Under the HO-3, Coverage
A—Dwelling applies to
Select one:
A. Any of the structures used by Nicholas, Laura, or any family member as a residential
dwelling.
B. None of the structures.
C. The cottage, which is the structure that is their residence premises and is listed as
such on the policy's declarations.
D. All of the structures. - ANS- C. The cottage, which is the structure that is their
residence premises and is listed as such on the policy's declarations.
, Larry owns and occupies a home with a detached garage that is insured under an HO-3
policy. Due to the cold winters, Larry has decided to connect the garage to his home with
an enclosed breezeway, permanently connecting the dwelling and the garage with a
connected roof, to avoid going outside to get to and from his automobile. Which one of
the following is true regarding Larry's homeowner policy coverage?
Select one:
A. Larry should reduce his Coverage B limit for the value of the garage.
B. Larry may need to increase his Coverage A limit for the value of the garage and
breezeway.
C. Larry should consider the breezeway a "fixture" to be covered under Coverage A of
the policy.
D. Larry should include the cost of the land the garage is on for the Coverage A limit. -
ANS- B. Larry may need to increase his Coverage A limit for the value of the garage and
breezeway.
Tomas has an HO-3 policy covering his home. A neighbor jumped Tomas's fence to use
his yard as a shortcut to a store, tripped over a small shovel left on the lawn, and was
injured. The neighbor sued Tomas. Tomas's insurer defended and won the lawsuit on the
theory that the neighbor was a trespasser to whom no duty was owed by Tomas. The
insurer's defense included $20,000 in legal fees. Who is responsible for these fees?
Select one:
A. Tomas and the insurer share responsibility for the legal fees.
B. Tomas's HO-3 insurer is responsible for the legal fees.
C. Tomas is, because liability coverage is not triggered absent a finding of liability.
D. The insurer is responsible for the legal fees only if Tomas is not able to pay them. -
ANS- B. Tomas's HO-3 insurer is responsible for the legal fees.
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 cost of defense exceeds the personal liability limits.
C. When policy limits are exhausted by the claim expenses.
D. When the liability limit for the occurrence is exhausted by payment of a settlement or
judgment. - ANS- D. When the liability limit for the occurrence is exhausted by payment
of a settlement or judgment.
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 on the insured location and is working
B. The residence employee is away from the insured location and is not working
C. The residence employee is on the insured location but is not working
