AINS 102 Chapter Practice Quizzes With Complete
Solutions
Alex and his marketing team are evaluating various new
insurance platforms to provide research to serve their customers
better. Which one of the following best describes what the team
has accurately discovered?
A) These platforms' differentiation is providing a specialized,
tech-driven, and individual customer response.
B) Startups do best when they quickly break into a new market
and exclusively focus on established customers.
C) Providing smart devices to insured homeowners will not
prevent losses, but rather lower claim payments.
D) Tech-driven insurance platforms offer very different types of
property insurance than traditional insurers. Correct Answers A
Alice works in the personal lines market for Hill Top Insurance
(HTI). Her main responsibility is to develop a profitable book of
business and help the insurer fulfill its promises to
policyholders. Alice must determine which applicants to accept,
whether the coverage is appropriate, and how much to charge in
premium. Which one of the following positions does Alice hold
at HTI?
A) Producer
B) Underwriter
C) Risk Control Representative
D) Auditor Correct Answers B
,Alicia's house is insured under a HO-3 policy. When a fire
damaged her garage, the claims representative told her that it
would be covered under Coverage B—Other Structures. Under
the HO-3 policy, Coverage B—Other Structures applies to
structures
A) Not on the residence premises but owned by the insured.
B) On the residence premises and more than 100 feet from the
dwelling.
C) On the residence premises and attached to the residence
premises by permanent structures.
D) On the residence premises that are not attached to the
dwelling and are separated from the dwelling by clear space.
Correct Answers D
All of the following are considered personal property, EXCEPT:
A) Cherry Tree
B) Patent
C) Revolver
D) Antique Patio Correct Answers A
All of the following are true of the HO-3 Special Form,
EXCEPT:
A) The HO-3 can be modified for special needs through
available endorsements.
B) The HO-3 is designed for owners who occupy their dwelling
or choose to rent it.
C) The HO-3 is typically used as a basis for understanding other
HO coverage forms.
, D) The HO-3 meets the property and liability coverage needs of
most families. Correct Answers B
All of the following could lead to a liability loss for a family,
EXCEPT:
A) The daughter, who is 16 years old, sideswipes a neighbor's
car and dents its fender while driving her own car.
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 father trips on a broom he left lying in the driveway and
breaks his arm Correct Answers D
An alternative dispute resolution method by which disputing
parties use a neutral outside party to examine the issues and
develop a settlement is
A) Legal Liability
B) Subrogation
C) Arbitration
D) Right of Recovery Correct Answers C
An inland marine floater is named as such because
A) It covers property that is transported on the ocean
B) It covers property that moves over land
C) It was first needed by sailors in old times
D) It usually relates to maritime possessions Correct Answers B
Solutions
Alex and his marketing team are evaluating various new
insurance platforms to provide research to serve their customers
better. Which one of the following best describes what the team
has accurately discovered?
A) These platforms' differentiation is providing a specialized,
tech-driven, and individual customer response.
B) Startups do best when they quickly break into a new market
and exclusively focus on established customers.
C) Providing smart devices to insured homeowners will not
prevent losses, but rather lower claim payments.
D) Tech-driven insurance platforms offer very different types of
property insurance than traditional insurers. Correct Answers A
Alice works in the personal lines market for Hill Top Insurance
(HTI). Her main responsibility is to develop a profitable book of
business and help the insurer fulfill its promises to
policyholders. Alice must determine which applicants to accept,
whether the coverage is appropriate, and how much to charge in
premium. Which one of the following positions does Alice hold
at HTI?
A) Producer
B) Underwriter
C) Risk Control Representative
D) Auditor Correct Answers B
,Alicia's house is insured under a HO-3 policy. When a fire
damaged her garage, the claims representative told her that it
would be covered under Coverage B—Other Structures. Under
the HO-3 policy, Coverage B—Other Structures applies to
structures
A) Not on the residence premises but owned by the insured.
B) On the residence premises and more than 100 feet from the
dwelling.
C) On the residence premises and attached to the residence
premises by permanent structures.
D) On the residence premises that are not attached to the
dwelling and are separated from the dwelling by clear space.
Correct Answers D
All of the following are considered personal property, EXCEPT:
A) Cherry Tree
B) Patent
C) Revolver
D) Antique Patio Correct Answers A
All of the following are true of the HO-3 Special Form,
EXCEPT:
A) The HO-3 can be modified for special needs through
available endorsements.
B) The HO-3 is designed for owners who occupy their dwelling
or choose to rent it.
C) The HO-3 is typically used as a basis for understanding other
HO coverage forms.
, D) The HO-3 meets the property and liability coverage needs of
most families. Correct Answers B
All of the following could lead to a liability loss for a family,
EXCEPT:
A) The daughter, who is 16 years old, sideswipes a neighbor's
car and dents its fender while driving her own car.
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 father trips on a broom he left lying in the driveway and
breaks his arm Correct Answers D
An alternative dispute resolution method by which disputing
parties use a neutral outside party to examine the issues and
develop a settlement is
A) Legal Liability
B) Subrogation
C) Arbitration
D) Right of Recovery Correct Answers C
An inland marine floater is named as such because
A) It covers property that is transported on the ocean
B) It covers property that moves over land
C) It was first needed by sailors in old times
D) It usually relates to maritime possessions Correct Answers B
