AINS 102 Ch 2 QUESTIONS WITH COMPLETE
SOLUTIONS
All of the following will be shown under the Schedule of
Coverages section on the Declarations page of the Personal Auto
Policy (PAP), EXCEPT:
Select one:
A. Endorsements
B. Premiums
C. Limits of insurance
D. Deductibles Correct Answers A. Endorsements
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's PAP should cover the claim.
D. Because Brendan, not Sue, was driving the car. Correct
Answers A. Because the Part A insuring agreement excludes
intentional harm.
, Courtney drove her car home after spending an afternoon
celebrating with some friends at a bar. She ran through a stop
sign at a high speed and struck a van carrying a mother and two
children. The van was totaled and all of the family members in
the van were injured and hospitalized. The youngest child was
severely injured and spent 3 months in the hospital and
rehabilitation. The family filled a lawsuit against Courtney. She
was found liable for the hospital and other medical expenses, as
well as the damage to the van. Courtney was also charged with
$25,000 for her reckless and grossly negligent behavior. Which
one of the following types of damages does the $25,000
represent?
Select one:
A. Punitive damages
B. Supplementary damages
C. Compensatory damages
D. Physical damages Correct Answers A. Punitive damages
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. Correct Answers B. Newly acquired auto.
In the Personal Auto Policy (PAP) definitions, "Your covered
auto" includes all of the following classes of vehicles, EXCEPT:
Select one:
A. A trailer owned by the insured
SOLUTIONS
All of the following will be shown under the Schedule of
Coverages section on the Declarations page of the Personal Auto
Policy (PAP), EXCEPT:
Select one:
A. Endorsements
B. Premiums
C. Limits of insurance
D. Deductibles Correct Answers A. Endorsements
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's PAP should cover the claim.
D. Because Brendan, not Sue, was driving the car. Correct
Answers A. Because the Part A insuring agreement excludes
intentional harm.
, Courtney drove her car home after spending an afternoon
celebrating with some friends at a bar. She ran through a stop
sign at a high speed and struck a van carrying a mother and two
children. The van was totaled and all of the family members in
the van were injured and hospitalized. The youngest child was
severely injured and spent 3 months in the hospital and
rehabilitation. The family filled a lawsuit against Courtney. She
was found liable for the hospital and other medical expenses, as
well as the damage to the van. Courtney was also charged with
$25,000 for her reckless and grossly negligent behavior. Which
one of the following types of damages does the $25,000
represent?
Select one:
A. Punitive damages
B. Supplementary damages
C. Compensatory damages
D. Physical damages Correct Answers A. Punitive damages
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. Correct Answers B. Newly acquired auto.
In the Personal Auto Policy (PAP) definitions, "Your covered
auto" includes all of the following classes of vehicles, EXCEPT:
Select one:
A. A trailer owned by the insured
