AINS102 PRACTICE EXAM
QUESTIONS
Heather0and0Jeff0had0the0roof0blown0off0their0home0during0a0recent0storm.0Which0one
0of0the0following0best0expresses0the0financial0outcome0they0are0currently0experiencing
?
A.0No0change0in0their0financial0outcome
B.0Increased0expenses
C.0Lost0income
D.0Reduction0in0property0value0-0ans✔D.0Reduction0in0property0value
All0of0the0following0are0considered0personal0property,0EXCEPT:
A.0Cherry0tree
B.0Antique0piano
C.0Revolver
D.0Patent0-0ans✔A.0Cherry0tree
SF0Poultry0learned0that0a0number0of0individuals0had0become0ill0and0hospitalized0after0
eating0chicken0from0one0of0its0processing0plants.0The0company0did0not0advise0the0pu
blic0or0its0distributors0of0the0problem,0and0made0no0effort0to0recall0the0spoiled0product.
0Over0500individuals0ended-
up0becoming0ill0from0the0spoiled0chicken.0SF0Poultry0was0found0liable0in0court.0In0addi
tion0to0having0to0pay0the0medical0and0hospital0bills0for0the0injured0individuals,0damage
s0were0levied0against0SF0Poultry0to0punish0the0company0for0its0reckless0and0deceitful0
actions.0These0damages0that0were0levied0against0SF0Poultry0are0known0as
A.0Punitive0damages.
B.0Necessary0damages.
C.0Special0damages.
D.0General0damages0-0ans✔A.0Punitive0damages.
Punitive0damages0are0meant0to0punish0a0defendant0for0reckless,0malicious,0or0deceitf
ul0acts0and0need0not0bear0any0relation0to0the0party's0actual0damages.
Sophie0was0involved0in0an0auto0accident0with0another0vehicle.0The0driver0of0the0other0
vehicle0was0seriously0injured.0The0individual0spent0100days0in0the0hospital,0missed020
, months0of0work,0and0continues0to0experience0mental0distress.0The0other0vehicle0was0
also0damaged,0with0repair0costs0of0$5,000.0It0was0determined0that0Sophie0was0liable0f
or0the0damages0because0she0ran0a0red0light0and0caused0the0accident.0Which0one0of0t
he0following0damages0would0be0considered0general0damages?
A.0Damages0to0the0vehicle
B.0Mental0distress0compensation
C.0Two0months0of0lost0wages
D.0Hospital0and0medical0bills0-0ans✔B.0Mental0distress0compensation
General0damages,0also0called0direct0or0necessary0damages,0are0often0presumed0whe
n0special0damages0are0proven.0General0damages0can0include0compensation0for0pain0
and0suffering,0future0effect0of0disfigurement,0loss0of0a0limb,0sight,0or0hearing,0as0well0a
s0emotional0distress.
Which0one0of0the0following0is0considered0a0high-risk0driver?
A.0Mark0was0caught0and0convicted0of0driving0under0the0influence0of0alcohol.
B.0Stacey0was0involved0in0a0deadly0car0accident.
C.0Martin0can0only0qualify0for0the0most0expensive0auto0insurance.
D.0Cyndy0cannot0obtain0insurance0from0a0private0insurer.0-
0ans✔A.0Mark0was0caught0and0convicted0of0driving0under0the0influence0of0alcohol.
States0A,0B,0C,0and0D0have0addressed0the0problem0of0compensating0auto0accident0vi
ctims0differently.0Which0one0of0the0following0most0accurately0describes0the0way0that0st
ates0are0handling0this0issue?
A.0State0C,0a0no-
fault0state,0has0enacted0auto0insurance0covering0accident0victims0on0a0first-
party0basis,0usually0applying0both0to0bodily0injury0and0to0property0damage.
B.0State0A,0unlike0most0states,0has0enacted0a0compulsory0auto0insurance0law,0requiri
ng0motorists0to0provide0proof0they0have0some0means0to0pay0for0auto0accident0damag
es.
C.0State0D,0a0no-
fault0state,0has0enacted0auto0insurance0covering0accident0victims0on0a0first-
party0basis,0usually0applying0to0bodily0injury0and0not0to0property0damage.
D.0State0B0has0enacted0a0financial0responsibility0law0that0requires0auto0owners0to0carr
y0auto0liability0insurance0at0least0equal0to0certain0minimum0limits.0-
0ans✔C.0State0D,0a0no-
fault0state,0has0enacted0auto0insurance0covering0accident0victims0on0a0first-
party0basis,0usually0applying0to0bodily0injury0and0not0to0property0damage.
Which0one0of0the0following0is0true0regarding0the0use0of0technology0in0home0risk0mana
gement?
QUESTIONS
Heather0and0Jeff0had0the0roof0blown0off0their0home0during0a0recent0storm.0Which0one
0of0the0following0best0expresses0the0financial0outcome0they0are0currently0experiencing
?
A.0No0change0in0their0financial0outcome
B.0Increased0expenses
C.0Lost0income
D.0Reduction0in0property0value0-0ans✔D.0Reduction0in0property0value
All0of0the0following0are0considered0personal0property,0EXCEPT:
A.0Cherry0tree
B.0Antique0piano
C.0Revolver
D.0Patent0-0ans✔A.0Cherry0tree
SF0Poultry0learned0that0a0number0of0individuals0had0become0ill0and0hospitalized0after0
eating0chicken0from0one0of0its0processing0plants.0The0company0did0not0advise0the0pu
blic0or0its0distributors0of0the0problem,0and0made0no0effort0to0recall0the0spoiled0product.
0Over0500individuals0ended-
up0becoming0ill0from0the0spoiled0chicken.0SF0Poultry0was0found0liable0in0court.0In0addi
tion0to0having0to0pay0the0medical0and0hospital0bills0for0the0injured0individuals,0damage
s0were0levied0against0SF0Poultry0to0punish0the0company0for0its0reckless0and0deceitful0
actions.0These0damages0that0were0levied0against0SF0Poultry0are0known0as
A.0Punitive0damages.
B.0Necessary0damages.
C.0Special0damages.
D.0General0damages0-0ans✔A.0Punitive0damages.
Punitive0damages0are0meant0to0punish0a0defendant0for0reckless,0malicious,0or0deceitf
ul0acts0and0need0not0bear0any0relation0to0the0party's0actual0damages.
Sophie0was0involved0in0an0auto0accident0with0another0vehicle.0The0driver0of0the0other0
vehicle0was0seriously0injured.0The0individual0spent0100days0in0the0hospital,0missed020
, months0of0work,0and0continues0to0experience0mental0distress.0The0other0vehicle0was0
also0damaged,0with0repair0costs0of0$5,000.0It0was0determined0that0Sophie0was0liable0f
or0the0damages0because0she0ran0a0red0light0and0caused0the0accident.0Which0one0of0t
he0following0damages0would0be0considered0general0damages?
A.0Damages0to0the0vehicle
B.0Mental0distress0compensation
C.0Two0months0of0lost0wages
D.0Hospital0and0medical0bills0-0ans✔B.0Mental0distress0compensation
General0damages,0also0called0direct0or0necessary0damages,0are0often0presumed0whe
n0special0damages0are0proven.0General0damages0can0include0compensation0for0pain0
and0suffering,0future0effect0of0disfigurement,0loss0of0a0limb,0sight,0or0hearing,0as0well0a
s0emotional0distress.
Which0one0of0the0following0is0considered0a0high-risk0driver?
A.0Mark0was0caught0and0convicted0of0driving0under0the0influence0of0alcohol.
B.0Stacey0was0involved0in0a0deadly0car0accident.
C.0Martin0can0only0qualify0for0the0most0expensive0auto0insurance.
D.0Cyndy0cannot0obtain0insurance0from0a0private0insurer.0-
0ans✔A.0Mark0was0caught0and0convicted0of0driving0under0the0influence0of0alcohol.
States0A,0B,0C,0and0D0have0addressed0the0problem0of0compensating0auto0accident0vi
ctims0differently.0Which0one0of0the0following0most0accurately0describes0the0way0that0st
ates0are0handling0this0issue?
A.0State0C,0a0no-
fault0state,0has0enacted0auto0insurance0covering0accident0victims0on0a0first-
party0basis,0usually0applying0both0to0bodily0injury0and0to0property0damage.
B.0State0A,0unlike0most0states,0has0enacted0a0compulsory0auto0insurance0law,0requiri
ng0motorists0to0provide0proof0they0have0some0means0to0pay0for0auto0accident0damag
es.
C.0State0D,0a0no-
fault0state,0has0enacted0auto0insurance0covering0accident0victims0on0a0first-
party0basis,0usually0applying0to0bodily0injury0and0not0to0property0damage.
D.0State0B0has0enacted0a0financial0responsibility0law0that0requires0auto0owners0to0carr
y0auto0liability0insurance0at0least0equal0to0certain0minimum0limits.0-
0ans✔C.0State0D,0a0no-
fault0state,0has0enacted0auto0insurance0covering0accident0victims0on0a0first-
party0basis,0usually0applying0to0bodily0injury0and0not0to0property0damage.
Which0one0of0the0following0is0true0regarding0the0use0of0technology0in0home0risk0mana
gement?