AINS 102 EXAM QUESTIONS AND
ANSWERS 100% CORRECT!
,Property loss exposure - ANSWER A condition that presents the possibility that a
person or an organization will sustain a loss resulting from damage (including
destruction, taking, or loss of use) to property in which that person or organization has a
financial interest.
Real property (realty) - ANSWER Tangible property consisting of land, all structures
permanently attached to the land, and whatever is growing on the land.
Personal property - ANSWER All tangible or intangible property that is not real property.
Deductible - ANSWER A portion of a covered loss that is not paid by the insurer.
Liability loss exposure - ANSWER Any condition or situation that presents the possibility
of a claim alleging legal responsibility of a person or business for injury or damage
suffered by another party.
Damages - ANSWER Money claimed by, or a monetary award to, a party who has
suffered loss or injury for which another party is legally responsible.
Special damages - ANSWER A form of compensatory damages that awards a sum of
money for specific, identifiable expenses associated with the injured person's loss, such
as medical expenses or lost wages.
General damages - ANSWER A monetary award to compensate a victim for losses,
such as pain and suffering, that do not involve specific, measurable expenses.
Punitive damages - ANSWER A payment awarded by a court to punish a defendant for
a reckless, malicious, or deceitful act to deter similar conduct; the award need not bear
any relation to a party's actual damages.
Civil law - ANSWER A classification of law that applies to legal matters not governed by
criminal law and that protects rights and provides remedies for breaches of duties owed
to others.
Criminal law - ANSWER The branch of the law that imposes penalties for wrongs
against society.
, Compulsory auto insurance law - ANSWER Law that requires the owners or operators
of automobiles to carry automobile liability insurance at least equal to certain minimum
limits before the vehicle can be licensed or registered.
Financial responsibility laws - ANSWER Law enacted to ensure that motorists have the
financial ability to pay for any property damage or bodily injury they might cause as a
result of driving or owning an auto.
Personal injury protection (PIP) coverage - ANSWER Coverage that pays benefits,
regardless of fault, for medical expense, income loss, and other benefits, resulting from
bodily injury to occupants of a covered auto.
Residual market - ANSWER The term referring collectively to insurers and other
organizations that make insurance available through a shared risk mechanism to those
who cannot obtain coverage in the admitted market.
Internet of Things (IoT) - ANSWER A network of objects that transmit data to each other
and to central hubs through the internet.
First party - ANSWER The insured in an insurance contract.
Open perils coverage - ANSWER A type of policy or coverage that insures against risks
of direct physical loss except for those specifically excluded or limited by the policy.
Named perils coverage - ANSWER An insurance policy in which the covered causes of
loss are listed or "named" in the policy.
D. Underground pipes - ANSWER All of the following items are examples of personal
property, EXCEPT:
A. Sports equipment
B. Silverware
C. A fishing boat
D. Underground pipes
C. The detached garage - ANSWER 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?
A. The desk top computer
B. The boat in the driveway
C. The detached garage
ANSWERS 100% CORRECT!
,Property loss exposure - ANSWER A condition that presents the possibility that a
person or an organization will sustain a loss resulting from damage (including
destruction, taking, or loss of use) to property in which that person or organization has a
financial interest.
Real property (realty) - ANSWER Tangible property consisting of land, all structures
permanently attached to the land, and whatever is growing on the land.
Personal property - ANSWER All tangible or intangible property that is not real property.
Deductible - ANSWER A portion of a covered loss that is not paid by the insurer.
Liability loss exposure - ANSWER Any condition or situation that presents the possibility
of a claim alleging legal responsibility of a person or business for injury or damage
suffered by another party.
Damages - ANSWER Money claimed by, or a monetary award to, a party who has
suffered loss or injury for which another party is legally responsible.
Special damages - ANSWER A form of compensatory damages that awards a sum of
money for specific, identifiable expenses associated with the injured person's loss, such
as medical expenses or lost wages.
General damages - ANSWER A monetary award to compensate a victim for losses,
such as pain and suffering, that do not involve specific, measurable expenses.
Punitive damages - ANSWER A payment awarded by a court to punish a defendant for
a reckless, malicious, or deceitful act to deter similar conduct; the award need not bear
any relation to a party's actual damages.
Civil law - ANSWER A classification of law that applies to legal matters not governed by
criminal law and that protects rights and provides remedies for breaches of duties owed
to others.
Criminal law - ANSWER The branch of the law that imposes penalties for wrongs
against society.
, Compulsory auto insurance law - ANSWER Law that requires the owners or operators
of automobiles to carry automobile liability insurance at least equal to certain minimum
limits before the vehicle can be licensed or registered.
Financial responsibility laws - ANSWER Law enacted to ensure that motorists have the
financial ability to pay for any property damage or bodily injury they might cause as a
result of driving or owning an auto.
Personal injury protection (PIP) coverage - ANSWER Coverage that pays benefits,
regardless of fault, for medical expense, income loss, and other benefits, resulting from
bodily injury to occupants of a covered auto.
Residual market - ANSWER The term referring collectively to insurers and other
organizations that make insurance available through a shared risk mechanism to those
who cannot obtain coverage in the admitted market.
Internet of Things (IoT) - ANSWER A network of objects that transmit data to each other
and to central hubs through the internet.
First party - ANSWER The insured in an insurance contract.
Open perils coverage - ANSWER A type of policy or coverage that insures against risks
of direct physical loss except for those specifically excluded or limited by the policy.
Named perils coverage - ANSWER An insurance policy in which the covered causes of
loss are listed or "named" in the policy.
D. Underground pipes - ANSWER All of the following items are examples of personal
property, EXCEPT:
A. Sports equipment
B. Silverware
C. A fishing boat
D. Underground pipes
C. The detached garage - ANSWER 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?
A. The desk top computer
B. The boat in the driveway
C. The detached garage
