AINS 102 TEST QUESTIONS AND ANSWERS
100% CORRECT!!
,John is a recent homeowner and is considering the insurance coverages he needs for
his home and contents. If damaged by a peril covered by a homeowners policy, which
one of the following would be considered part of John's real property?
Select one:
A. The boat in the driveway
B. The detached garage
C. The desk top computer
D. The hockey net and equipment - ANSWER B. The detached garage
Which one of the following is considered real property?
Select one:
A. An automobile
B. A house
C. Furniture
D. A motorhome - ANSWER B. A house
All of the following could lead to a liability loss for a family, EXCEPT:
Select one:
A. The father trips on a broom he left lying in the driveway and breaks his arm.
B. The son, who is 13 years old, throws a rock at a classmate who requires stitches for
an injury to his head.
C. A guest slips on an icy sidewalk in front of the family's home and breaks his leg.
D. The daughter, who is 16 years old, sideswipes a neighbor's car and dents its fender
while driving her own car. - ANSWER A. The father trips on a broom he left lying in the
driveway and breaks his arm.
Which one of the following is a form of compensatory damages?
Select one:
A. Real damages
B. Special damages
C. Punitive damages
D. Exemplary damages - ANSWER B. Special damages
Which one of the following is used by the majority of states to compensate auto
accident victims?
Select one:
A. Personal injury protection coverage
B. Tort liability system
, C. Uninsured motorist coverage
D. Unsatisfied judgment funds - ANSWER B. Tort liability system
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. - ANSWER
C. State regulators require that rates be adequate, reasonable, and not unfairly
discriminatory.
All of the following are true of the HO-3 Special Form, EXCEPT:
Select one:
A. The HO-3 is designed for owners who occupy their dwelling or choose to rent it.
B. The HO-3 meets the property and liability coverage needs of most families.
C. The HO-3 is typically used as a basis for understanding other HO coverage forms.
D. The HO-3 can be modified for special needs through available endorsements. -
ANSWER A. The HO-3 is designed for owners who occupy their dwelling or choose to
rent it.
Brendan and Sue were on a road trip along the coast of California, using Sue's car. One
day they were stuck in terrible traffic while Brendan was driving. He became angry when
another car merged in front of him. A few minutes later, Brendan deliberately rammed
into the car that had cut in front of him, causing property damage to the other car. Both
Brendan and Sure were surprised to learn that Sue's Personal Auto Policy (PAP) would
not cover the claim. Which one of the following is the correct reason why Sue's PAP will
not pay the claim for property damage to the other car?
Select one:
A. Because the Part A insuring agreement excludes intentional harm.
B. Because Sue's PAP only covers property damage to her car.
C. Because Brendan, not Sue, was driving the car.
D. Because Brendan's PAP should cover the claim. - ANSWER A. Because the Part A
insuring agreement excludes intentional harm.
Miguel, an insured has a Personal Auto Policy (PAP) that includes medical payments
coverage. The insured crashed his car while trying to be the first car to pull away from a
stop at a red light when the light turned green. In this scenario, Miguel
100% CORRECT!!
,John is a recent homeowner and is considering the insurance coverages he needs for
his home and contents. If damaged by a peril covered by a homeowners policy, which
one of the following would be considered part of John's real property?
Select one:
A. The boat in the driveway
B. The detached garage
C. The desk top computer
D. The hockey net and equipment - ANSWER B. The detached garage
Which one of the following is considered real property?
Select one:
A. An automobile
B. A house
C. Furniture
D. A motorhome - ANSWER B. A house
All of the following could lead to a liability loss for a family, EXCEPT:
Select one:
A. The father trips on a broom he left lying in the driveway and breaks his arm.
B. The son, who is 13 years old, throws a rock at a classmate who requires stitches for
an injury to his head.
C. A guest slips on an icy sidewalk in front of the family's home and breaks his leg.
D. The daughter, who is 16 years old, sideswipes a neighbor's car and dents its fender
while driving her own car. - ANSWER A. The father trips on a broom he left lying in the
driveway and breaks his arm.
Which one of the following is a form of compensatory damages?
Select one:
A. Real damages
B. Special damages
C. Punitive damages
D. Exemplary damages - ANSWER B. Special damages
Which one of the following is used by the majority of states to compensate auto
accident victims?
Select one:
A. Personal injury protection coverage
B. Tort liability system
, C. Uninsured motorist coverage
D. Unsatisfied judgment funds - ANSWER B. Tort liability system
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. - ANSWER
C. State regulators require that rates be adequate, reasonable, and not unfairly
discriminatory.
All of the following are true of the HO-3 Special Form, EXCEPT:
Select one:
A. The HO-3 is designed for owners who occupy their dwelling or choose to rent it.
B. The HO-3 meets the property and liability coverage needs of most families.
C. The HO-3 is typically used as a basis for understanding other HO coverage forms.
D. The HO-3 can be modified for special needs through available endorsements. -
ANSWER A. The HO-3 is designed for owners who occupy their dwelling or choose to
rent it.
Brendan and Sue were on a road trip along the coast of California, using Sue's car. One
day they were stuck in terrible traffic while Brendan was driving. He became angry when
another car merged in front of him. A few minutes later, Brendan deliberately rammed
into the car that had cut in front of him, causing property damage to the other car. Both
Brendan and Sure were surprised to learn that Sue's Personal Auto Policy (PAP) would
not cover the claim. Which one of the following is the correct reason why Sue's PAP will
not pay the claim for property damage to the other car?
Select one:
A. Because the Part A insuring agreement excludes intentional harm.
B. Because Sue's PAP only covers property damage to her car.
C. Because Brendan, not Sue, was driving the car.
D. Because Brendan's PAP should cover the claim. - ANSWER A. Because the Part A
insuring agreement excludes intentional harm.
Miguel, an insured has a Personal Auto Policy (PAP) that includes medical payments
coverage. The insured crashed his car while trying to be the first car to pull away from a
stop at a red light when the light turned green. In this scenario, Miguel
