AINS 102 TEST QUESTIONS AND ANSWERS.docx

AINS 102 TEST QUESTIONS AND
ANSWERS




John0is0a0recent0homeowner0and0is0considering0the0insurance0coverages0he0needs0fo
r0his0home0and0contents.0If0damaged0by0a0peril0covered0by0a0homeowners0policy,0whi
ch0one0of0the0following0would0be0considered0part0of0John's0real0property?
Select0one:
A.0The0boat0in0the0driveway
B.0The0detached0garage
C.0The0desk0top0computer
D.0The0hockey0net0and0equipment0-0ans✔B.0The0detached0garage

Which0one0of0the0following0is0considered0real0property?
Select0one:
A.0An0automobile
B.0A0house
C.0Furniture
D.0A0motorhome0-0ans✔B.0A0house

All0of0the0following0could0lead0to0a0liability0loss0for0a0family,0EXCEPT:
Select0one:
A.0The0father0trips0on0a0broom0he0left0lying0in0the0driveway0and0breaks0his0arm.
B.0The0son,0who0is0130years0old,0throws0a0rock0at0a0classmate0who0requires0stitches0f
or0an0injury0to0his0head.
C.0A0guest0slips0on0an0icy0sidewalk0in0front0of0the0family's0home0and0breaks0his0leg.
D.0The0daughter,0who0is0160years0old,0sideswipes0a0neighbor's0car0and0dents0its0fend
er0while0driving0her0own0car.0-
0ans✔A.0The0father0trips0on0a0broom0he0left0lying0in0the0driveway0and0breaks0his0arm.


Which0one0of0the0following0is0a0form0of0compensatory0damages?
Select0one:
A.0Real0damages
B.0Special0damages
C.0Punitive0damages
D.0Exemplary0damages0-0ans✔B.0Special0damages

,Which0one0of0the0following0is0used0by0the0majority0of0states0to0compensate0auto0acci
dent0victims?
Select0one:
A.0Personal0injury0protection0coverage
B.0Tort0liability0system
C.0Uninsured0motorist0coverage
D.0Unsatisfied0judgment0funds0-0ans✔B.0Tort0liability0system

Which0one0of0the0following0statements0is0true0regarding0automobile0insurance0rating?
Select0one:
A.0State0regulators0require0that0all0insurers0offer0discounts0on0auto0rates0for0passive0r
estraints.
B.0Most0insurers0base0automobile0rates0on0primary0rating0factors0and0do0not0consider
0any0other0factors0in0establishing0rates.
C.0State0regulators0require0that0rates0be0adequate,0reasonable,0and0not0unfairly0discri
minatory.
D.0Drivers0with0lower-than-average0loss0exposure0are0charged0higher0rates.0-
0ans✔C.0State0regulators0require0that0rates0be0adequate,0reasonable,0and0not0unfairly
0discriminatory.


All0of0the0following0are0true0of0the0HO-30Special0Form,0EXCEPT:
Select0one:
A.0The0HO-30is0designed0for0owners0who0occupy0their0dwelling0or0choose0to0rent0it.
B.0The0HO-30meets0the0property0and0liability0coverage0needs0of0most0families.
C.0The0HO-30is0typically0used0as0a0basis0for0understanding0other0HO0coverage0forms.
D.0The0HO-30can0be0modified0for0special0needs0through0available0endorsements.0-
0ans✔A.0The0HO-
30is0designed0for0owners0who0occupy0their0dwelling0or0choose0to0rent0it.

Estelle0and0Richie0are0very0conservative0and0want0to0purchase0insurance0to0"cover0ev
erything"0in0order0to0lessen0the0worries0of0home0ownership.0Which0one0of0the0followin
g0ISO0forms0will0provide0them0dwelling0and0personal0property0insurance0with0the0broa
dest0possible0coverage?
Select0one:
A.0HO-20Broad0Form
B.0HO-30Special0Form
C.0HO-50Comprehensive0Form
D.0HO-80Modified0Form0-0ans✔C.0HO-50Comprehensive0Form

The0Agreement0and0Definitions0page0of0the0Personal0Auto0Policy0(PAP)0includes
Select0one:
A.0The0name0of0the0insurer0issuing0the0policy.
B.0A0general0agreement0stating0the0insurer's0duty0to0pay0damages0and0defense0costs
0subject0to0the0terms0of0the0policy.
C.0A0general0agreement0stating0that0the0insurer0is0providing0the0coverage0subject0to0p
ayment0of0premium0and0to0the0terms0of0the0policy.

, D.0The0name0and0mailing0address0of0the0insured.0-
0ans✔C.0A0general0agreement0stating0that0the0insurer0is0providing0the0coverage0subje
ct0to0payment0of0premium0and0to0the0terms0of0the0policy.

In0the0Personal0Auto0Policy0(PAP)0definitions,0"Your0covered0auto"0includes0all0of0the0
following0classes0of0vehicles,0EXCEPT:
Select0one:
A.0A0trailer0owned0by0the0insured
B.0A0temporary0substitute0auto0or0trailer
C.0A0newly0acquired0auto
D.0A0trailer0rented0by0the0insured0-0ans✔D.0A0trailer0rented0by0the0insured

Brendan0and0Sue0were0on0a0road0trip0along0the0coast0of0California,0using0Sue's0car.0
One0day0they0were0stuck0in0terrible0traffic0while0Brendan0was0driving.0He0became0ang
ry0when0another0car0merged0in0front0of0him.0A0few0minutes0later,0Brendan0deliberately
0rammed0into0the0car0that0had0cut0in0front0of0him,0causing0property0damage0to0the0oth
er0car.0Both0Brendan0and0Sure0were0surprised0to0learn0that0Sue's0Personal0Auto0Poli
cy0(PAP)0would0not0cover0the0claim.0Which0one0of0the0following0is0the0correct0reason0
why0Sue's0PAP0will0not0pay0the0claim0for0property0damage0to0the0other0car?
Select0one:
A.0Because0the0Part0A0insuring0agreement0excludes0intentional0harm.
B.0Because0Sue's0PAP0only0covers0property0damage0to0her0car.
C.0Because0Brendan,0not0Sue,0was0driving0the0car.
D.0Because0Brendan's0PAP0should0cover0the0claim.0-
0ans✔A.0Because0the0Part0A0insuring0agreement0excludes0intentional0harm.


Miguel,0an0insured0has0a0Personal0Auto0Policy0(PAP)0that0includes0medical0payments
0coverage.0The0insured0crashed0his0car0while0trying0to0be0the0first0car0to0pull0away0fro
m0a0stop0at0a0red0light0when0the0light0turned0green.0In0this0scenario,0Miguel
Select0one:
A.0Would0be0eligible0for0medical0payments0under0the0Personal0Auto0Policy0(PAP)0bec
ause0he0wasn't0caught0speeding0at0the0scene.
B.0Would0not0be0eligible0for0medical0payments0under0the0Personal0Auto0Policy0(PAP)0
if0he0was0found0at0fault0because0of0this0accident.
C.0Would0be0eligible0for0medical0payments0under0the0Personal0Auto0Policy0(PAP)0as0t
he0named0insured0and0an0occupant0of0a0covered0auto.
D.0Would0not0be0eligible0for0medical0payments0under0the0Personal0Auto0Policy0(PAP)0
because0he0is0being0reckless.0-
0ans✔C.0Would0be0eligible0for0medical0payments0under0the0Personal0Auto0Policy0(PA
P)0as0the0named0insured0and0an0occupant0of0a0covered0auto.

The0Part0B—
Medical0Payments0Coverage0of0the0Personal0Auto0Policy0(PAP)0contains0an0Other0Ins
urance0provision.0If0two0automobile0policies0from0different0insurers0cover0the0same0ow
ned0vehicle,
Select0one: