AINS 102 CH 1 EXAM QUESTIONS AND
ANSWERS 100% CORRECT!!
, When property is damaged, individuals sustain certain financial consequences as a
result of the damage. These consequences can include
Select one:
A. Increased expenses.
B. Coverage termination.
C. Increased premiums.
D. Policy endorsements. - ANSWER A. Increased expenses.
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. -
ANSWER D. Lightning damage to a tree is an example of a real property loss exposure.
Which one of the following is a form of compensatory damages?
Select one:
A. Real damages
B. Punitive damages
C. Special damages
D. Exemplary damages - ANSWER C. Special damages
All of the following could lead to a liability loss for a family, EXCEPT:
Select one:
A. The daughter, who is 16 years old, sideswipes a neighbor's car and dents its fender
while driving her own car.
B. The father trips on a broom he left lying in the driveway and breaks his arm.
C. A guest slips on an icy sidewalk in front of the family's home and breaks his leg.
D. The son, who is 13 years old, throws a rock at a classmate who requires stitches for
an injury to his head. - ANSWER B. The father trips on a broom he left lying in the
driveway and breaks his arm.
Under the tort liability system, injured accident victims must prove that
Select one:
A. Another party was at fault before they can collect damages.
B. They are unable to purchase insurance from another source before they can collect
damages.
C. The insurance limits they have purchased are equal to or greater than the state
minimum limits before they can collect damages.
ANSWERS 100% CORRECT!!
, When property is damaged, individuals sustain certain financial consequences as a
result of the damage. These consequences can include
Select one:
A. Increased expenses.
B. Coverage termination.
C. Increased premiums.
D. Policy endorsements. - ANSWER A. Increased expenses.
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. -
ANSWER D. Lightning damage to a tree is an example of a real property loss exposure.
Which one of the following is a form of compensatory damages?
Select one:
A. Real damages
B. Punitive damages
C. Special damages
D. Exemplary damages - ANSWER C. Special damages
All of the following could lead to a liability loss for a family, EXCEPT:
Select one:
A. The daughter, who is 16 years old, sideswipes a neighbor's car and dents its fender
while driving her own car.
B. The father trips on a broom he left lying in the driveway and breaks his arm.
C. A guest slips on an icy sidewalk in front of the family's home and breaks his leg.
D. The son, who is 13 years old, throws a rock at a classmate who requires stitches for
an injury to his head. - ANSWER B. The father trips on a broom he left lying in the
driveway and breaks his arm.
Under the tort liability system, injured accident victims must prove that
Select one:
A. Another party was at fault before they can collect damages.
B. They are unable to purchase insurance from another source before they can collect
damages.
C. The insurance limits they have purchased are equal to or greater than the state
minimum limits before they can collect damages.
