AINS 102 EXAM (UNDERSTANDING PERSONAL INSURANCE) EXAM A, B & C COMPLETE
QUESTIONS & CORRECT ANSWERS - JUST RELEASED!!!
what does PAP definition for "your covered auto include" - (ANSWER)1) any vehicle lusted in the
declarations
2) any newly acquired auto
3) any trailer owned by the named insuerer
a Temp substitute auto or trailer
Indv and families property loss exposure stem from ownership of what TWO main categories -
(ANSWER)Real property and personal property (Different coverages & different premiums)
Real property - (ANSWER)Land, buildings, other structures attached to land, anything growing on the
land, anything imbedded in the land
Personal property - (ANSWER)Dwelling contents (furniture, electronics), high property (jewerly,
silverware), rare unique property (supplies, machinery), intangible property (copyrights/patents), motor
vehicles
Damaged or destroyed property can result in these outcomes - (ANSWER)reduction in property value,
increased expenses, lost income
reduction in property value - (ANSWER)the difference between the calue of the property before the loss
(pre loss value) and after the loss (post-loss value)
increased expenses - (ANSWER)expenses in addition to normal living expenses that are necessary
because of the loss EX: cost of renting a hotel room following a house fire
lost income - (ANSWER)loss of income that results when property is damages or destroyed EX: loss of
rent that can be collected on a property that is damages by a hurricane
What categories do risk management techniques fall into - (ANSWER)risk control or risk financing:
families may use both kinds of techniques to manage risk and ensure their well being, financial stability,
and security
, AINS 102 EXAM (UNDERSTANDING PERSONAL INSURANCE) EXAM A, B & C COMPLETE
QUESTIONS & CORRECT ANSWERS - JUST RELEASED!!!
Risk Control Techniques - (ANSWER)reduce frequency or severity of a loss; avoidance, loss prevention,
loss reduction
Risk Financing Techniques - (ANSWER)generate funds to finance losses that risk control techniques
cannot entirely prevent or reduce
What are the most frequently used risk control techniques - (ANSWER)avoidance, loss prevention, loss
reduction, seperation, duplication, diversification
what are the most frequently used risk financing techniques - (ANSWER)retention, transfer
Common sources of personal liability loss exposures - (ANSWER)1.) Automobile - related lawsuits
2.) Real estate
3.) accidental
4.)liability loss (legal duty)
Two major financial consequences when a liability claim occurs - (ANSWER)-pay more money damages if
the legal defense isnt successful or is the claim is settled out of court
-pay the costs of a legal investigation and defense
damages in a liability lawsuit - (ANSWER)special damages and general damages
punitive - (ANSWER)can be imposed- its more common for them to be levied against companies. these
damages are meant to punish a defendant for reckless malicious or deceitful acts
QUESTIONS & CORRECT ANSWERS - JUST RELEASED!!!
what does PAP definition for "your covered auto include" - (ANSWER)1) any vehicle lusted in the
declarations
2) any newly acquired auto
3) any trailer owned by the named insuerer
a Temp substitute auto or trailer
Indv and families property loss exposure stem from ownership of what TWO main categories -
(ANSWER)Real property and personal property (Different coverages & different premiums)
Real property - (ANSWER)Land, buildings, other structures attached to land, anything growing on the
land, anything imbedded in the land
Personal property - (ANSWER)Dwelling contents (furniture, electronics), high property (jewerly,
silverware), rare unique property (supplies, machinery), intangible property (copyrights/patents), motor
vehicles
Damaged or destroyed property can result in these outcomes - (ANSWER)reduction in property value,
increased expenses, lost income
reduction in property value - (ANSWER)the difference between the calue of the property before the loss
(pre loss value) and after the loss (post-loss value)
increased expenses - (ANSWER)expenses in addition to normal living expenses that are necessary
because of the loss EX: cost of renting a hotel room following a house fire
lost income - (ANSWER)loss of income that results when property is damages or destroyed EX: loss of
rent that can be collected on a property that is damages by a hurricane
What categories do risk management techniques fall into - (ANSWER)risk control or risk financing:
families may use both kinds of techniques to manage risk and ensure their well being, financial stability,
and security
, AINS 102 EXAM (UNDERSTANDING PERSONAL INSURANCE) EXAM A, B & C COMPLETE
QUESTIONS & CORRECT ANSWERS - JUST RELEASED!!!
Risk Control Techniques - (ANSWER)reduce frequency or severity of a loss; avoidance, loss prevention,
loss reduction
Risk Financing Techniques - (ANSWER)generate funds to finance losses that risk control techniques
cannot entirely prevent or reduce
What are the most frequently used risk control techniques - (ANSWER)avoidance, loss prevention, loss
reduction, seperation, duplication, diversification
what are the most frequently used risk financing techniques - (ANSWER)retention, transfer
Common sources of personal liability loss exposures - (ANSWER)1.) Automobile - related lawsuits
2.) Real estate
3.) accidental
4.)liability loss (legal duty)
Two major financial consequences when a liability claim occurs - (ANSWER)-pay more money damages if
the legal defense isnt successful or is the claim is settled out of court
-pay the costs of a legal investigation and defense
damages in a liability lawsuit - (ANSWER)special damages and general damages
punitive - (ANSWER)can be imposed- its more common for them to be levied against companies. these
damages are meant to punish a defendant for reckless malicious or deceitful acts
