AINS 102 TEST QUESTIONS AND
SOLVED ANSWERS
John is a recent homeowner and is considering the insurance coverages he needs f
sw sw sw sw sw sw sw sw sw sw sw sw sw
or his home and contents. If damaged by a peril covered by a homeowners policy,
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
which one of the following would be considered part of John's real property?
sw sw sw sw sw sw sw sw sw sw sw sw
Select one: sw
A. The boat in the driveway
sw sw sw sw sw
B. The detached garage
sw sw sw
C. The desk top computer
sw sw sw sw
D. The hockey net and equipment - ans-B. The detached garage
sw sw sw sw sw sw sw sw sw sw
Which one of the following is considered real property?
sw sw sw sw sw sw sw sw
Select one: sw
A. An automobile
sw sw
B. A house
sw sw
C. Furniture
sw
D. A motorhome - ans-B. A house
sw sw sw sw sw sw
All of the following could lead to a liability loss for a family, EXCEPT:
sw sw sw sw sw sw sw sw sw sw sw sw sw
Select one: sw
A. The father trips on a broom he left lying in the driveway and breaks his arm.
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
B. The son, who is 13 years old, throws a rock at a classmate who requires stitches
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
for an injury to his head.
sw sw sw sw sw sw
C. A guest slips on an icy sidewalk in front of the family's home and breaks his leg.
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
D. The daughter, who is 16 years old, sideswipes a neighbor's car and dents its fen
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
der while driving her own car. - ans-
sw sw sw sw sw sw sw
A. The father trips on a broom he left lying in the driveway and breaks his arm.
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
Which one of the following is a form of compensatory damages?
sw sw sw sw sw sw sw sw sw sw
Select one: sw
A. Real damages
sw sw
B. Special damages
sw sw
C. Punitive damages
sw sw
D. Exemplary damages - ans-B. Special damages
sw sw sw sw sw sw
,Which one of the following is used by the majority of states to compensate auto acc
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
ident victims? sw
Select one: sw
A. Personal injury protection coverage
sw sw sw sw
B. Tort liability system
sw sw sw
C. Uninsured motorist coverage
sw sw sw
D. Unsatisfied judgment funds - ans-B. Tort liability system
sw sw sw sw sw sw sw sw
Which one of the following statements is true regarding automobile insurance rating?
sw sw sw sw sw sw sw sw sw sw sw
Select one: sw
A. State regulators require that all insurers offer discounts on auto rates for passive
sw sw sw sw sw sw sw sw sw sw sw sw sw sw
restraints.
B. Most insurers base automobile rates on primary rating factors and do not conside
sw sw sw sw sw sw sw sw sw sw sw sw sw
r any other factors in establishing rates.
sw sw sw sw sw sw
C. State regulators require that rates be adequate, reasonable, and not unfairly discr
sw sw sw sw sw sw sw sw sw sw sw sw
iminatory.
D. Drivers with lower-than-average loss exposure are charged higher rates. - ans-
sw sw sw sw sw sw sw sw sw sw sw
C. State regulators require that rates be adequate, reasonable, and not unfairly discr
sw sw sw sw sw sw sw sw sw sw sw sw
iminatory.
All of the following are true of the HO-3 Special Form, EXCEPT:
sw sw sw sw sw sw sw sw sw sw sw
Select one: sw
A. The HO-3 is designed for owners who occupy their dwelling or choose to rent it.
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
B. The HO-3 meets the property and liability coverage needs of most families.
sw sw sw sw sw sw sw sw sw sw sw sw
C. The HO-sw sw
3 is typically used as a basis for understanding other HO coverage forms.
sw sw sw sw sw sw sw sw sw sw sw sw
D. The HO-3 can be modified for special needs through available endorsements. -
sw sw sw sw sw sw sw sw sw sw sw sw
ans-A. The HO-
sw sw sw
3 is designed for owners who occupy their dwelling or choose to rent it.
sw sw sw sw sw sw sw sw sw sw sw sw sw
Estelle and Richie are very conservative and want to purchase insurance to "cover e
sw sw sw sw sw sw sw sw sw sw sw sw sw
verything" in order to lessen the worries of home ownership. Which one of the follow
sw sw sw sw sw sw sw sw sw sw sw sw sw sw
ing ISO forms will provide them dwelling and personal property insurance with the br
sw sw sw sw sw sw sw sw sw sw sw sw sw
oadest possible coverage? sw sw
Select one: sw
A. HO-2 Broad Form
sw sw sw
B. HO-3 Special Form
sw sw sw
C. HO-5 Comprehensive Form
sw sw sw
D. HO-8 Modified Form - ans-C. HO-5 Comprehensive Form
sw sw sw sw sw sw sw sw
The Agreement and Definitions page of the Personal Auto Policy (PAP) includes
sw sw sw sw sw sw sw sw sw sw sw
Select one: sw
A. The name of the insurer issuing the policy.
sw sw sw sw sw sw sw sw
B. A general agreement stating the insurer's duty to pay damages and defense cost
sw sw sw sw sw sw sw sw sw sw sw sw sw
s subject to the terms of the policy.
sw sw sw sw sw sw sw
, C. A general agreement stating that the insurer is providing the coverage subject to
sw sw sw sw sw sw sw sw sw sw sw sw sw sw
payment of premium and to the terms of the policy.
sw sw sw sw sw sw sw sw sw
D. The name and mailing address of the insured. - ans-
sw sw sw sw sw sw sw sw sw sw
C. A general agreement stating that the insurer is providing the coverage subject to
sw sw sw sw sw sw sw sw sw sw sw sw sw sw
payment of premium and to the terms of the policy.
sw sw sw sw sw sw sw sw sw
In the Personal Auto Policy (PAP) definitions, "Your covered auto" includes all of the
sw sw sw sw sw sw sw sw sw sw sw sw sw
following classes of vehicles, EXCEPT:
sw sw sw sw sw
Select one: sw
A. A trailer owned by the insured
sw sw sw sw sw sw
B. A temporary substitute auto or trailer
sw sw sw sw sw sw
C. A newly acquired auto
sw sw sw sw
D. A trailer rented by the insured - ans-D. A trailer rented by the insured
sw sw sw sw sw sw sw sw sw sw sw sw sw sw
Brendan and Sue were on a road trip along the coast of California, using Sue's car.
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw s
wOne day they were stuck in terrible traffic while Brendan was driving. He became a
sw sw sw sw sw sw sw sw sw sw sw sw sw sw
ngry when another car merged in front of him. A few minutes later, Brendan deliber
sw sw sw sw sw sw sw sw sw sw sw sw sw sw
ately rammed into the car that had cut in front of him, causing property damage to t
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
he other car. Both Brendan and Sure were surprised to learn that Sue's Personal A
sw sw sw sw sw sw sw sw sw sw sw sw sw sw
uto Policy (PAP) would not cover the claim. Which one of the following is the correc
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
t reason why Sue's PAP will not pay the claim for property damage to the other car
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
?
Select one: sw
A. Because the Part A insuring agreement excludes intentional harm.
sw sw sw sw sw sw sw sw sw
B. Because Sue's PAP only covers property damage to her car.
sw sw sw sw sw sw sw sw sw sw
C. Because Brendan, not Sue, was driving the car.
sw sw sw sw sw sw sw sw
D. Because Brendan's PAP should cover the claim. - ans-
sw sw sw sw sw sw sw sw sw
A. Because the Part A insuring agreement excludes intentional harm.
sw sw sw sw sw sw sw sw sw
Miguel, an insured has a Personal Auto Policy (PAP) that includes medical payment
sw sw sw sw sw sw sw sw sw sw sw sw
s coverage. The insured crashed his car while trying to be the first car to pull away
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
from a stop at a red light when the light turned green. In this scenario, Miguel
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
Select one: sw
A. Would be eligible for medical payments under the Personal Auto Policy (PAP) be
sw sw sw sw sw sw sw sw sw sw sw sw sw
cause he wasn't caught speeding at the scene.
sw sw sw sw sw sw sw
B. Would not be eligible for medical payments under the Personal Auto Policy (PAP)
sw sw sw sw sw sw sw sw sw sw sw sw sw
swif he was found at fault because of this accident.
sw sw sw sw sw sw sw sw sw
C. Would be eligible for medical payments under the Personal Auto Policy (PAP) as
sw sw sw sw sw sw sw sw sw sw sw sw sw s
wthe named insured and an occupant of a covered auto.
sw sw sw sw sw sw sw sw sw
D. Would not be eligible for medical payments under the Personal Auto Policy (PAP)
sw sw sw sw sw sw sw sw sw sw sw sw sw
swbecause he is being reckless. - ans- sw sw sw sw sw sw
C. Would be eligible for medical payments under the Personal Auto Policy (PAP) as
sw sw sw sw sw sw sw sw sw sw sw sw sw s
wthe named insured and an occupant of a covered auto.
sw sw sw sw sw sw sw sw sw
The Part B— sw sw
Medical Payments Coverage of the Personal Auto Policy (PAP) contains an Other In
sw sw sw sw sw sw sw sw sw sw sw sw
SOLVED ANSWERS
John is a recent homeowner and is considering the insurance coverages he needs f
sw sw sw sw sw sw sw sw sw sw sw sw sw
or his home and contents. If damaged by a peril covered by a homeowners policy,
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
which one of the following would be considered part of John's real property?
sw sw sw sw sw sw sw sw sw sw sw sw
Select one: sw
A. The boat in the driveway
sw sw sw sw sw
B. The detached garage
sw sw sw
C. The desk top computer
sw sw sw sw
D. The hockey net and equipment - ans-B. The detached garage
sw sw sw sw sw sw sw sw sw sw
Which one of the following is considered real property?
sw sw sw sw sw sw sw sw
Select one: sw
A. An automobile
sw sw
B. A house
sw sw
C. Furniture
sw
D. A motorhome - ans-B. A house
sw sw sw sw sw sw
All of the following could lead to a liability loss for a family, EXCEPT:
sw sw sw sw sw sw sw sw sw sw sw sw sw
Select one: sw
A. The father trips on a broom he left lying in the driveway and breaks his arm.
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
B. The son, who is 13 years old, throws a rock at a classmate who requires stitches
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
for an injury to his head.
sw sw sw sw sw sw
C. A guest slips on an icy sidewalk in front of the family's home and breaks his leg.
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
D. The daughter, who is 16 years old, sideswipes a neighbor's car and dents its fen
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
der while driving her own car. - ans-
sw sw sw sw sw sw sw
A. The father trips on a broom he left lying in the driveway and breaks his arm.
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
Which one of the following is a form of compensatory damages?
sw sw sw sw sw sw sw sw sw sw
Select one: sw
A. Real damages
sw sw
B. Special damages
sw sw
C. Punitive damages
sw sw
D. Exemplary damages - ans-B. Special damages
sw sw sw sw sw sw
,Which one of the following is used by the majority of states to compensate auto acc
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
ident victims? sw
Select one: sw
A. Personal injury protection coverage
sw sw sw sw
B. Tort liability system
sw sw sw
C. Uninsured motorist coverage
sw sw sw
D. Unsatisfied judgment funds - ans-B. Tort liability system
sw sw sw sw sw sw sw sw
Which one of the following statements is true regarding automobile insurance rating?
sw sw sw sw sw sw sw sw sw sw sw
Select one: sw
A. State regulators require that all insurers offer discounts on auto rates for passive
sw sw sw sw sw sw sw sw sw sw sw sw sw sw
restraints.
B. Most insurers base automobile rates on primary rating factors and do not conside
sw sw sw sw sw sw sw sw sw sw sw sw sw
r any other factors in establishing rates.
sw sw sw sw sw sw
C. State regulators require that rates be adequate, reasonable, and not unfairly discr
sw sw sw sw sw sw sw sw sw sw sw sw
iminatory.
D. Drivers with lower-than-average loss exposure are charged higher rates. - ans-
sw sw sw sw sw sw sw sw sw sw sw
C. State regulators require that rates be adequate, reasonable, and not unfairly discr
sw sw sw sw sw sw sw sw sw sw sw sw
iminatory.
All of the following are true of the HO-3 Special Form, EXCEPT:
sw sw sw sw sw sw sw sw sw sw sw
Select one: sw
A. The HO-3 is designed for owners who occupy their dwelling or choose to rent it.
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
B. The HO-3 meets the property and liability coverage needs of most families.
sw sw sw sw sw sw sw sw sw sw sw sw
C. The HO-sw sw
3 is typically used as a basis for understanding other HO coverage forms.
sw sw sw sw sw sw sw sw sw sw sw sw
D. The HO-3 can be modified for special needs through available endorsements. -
sw sw sw sw sw sw sw sw sw sw sw sw
ans-A. The HO-
sw sw sw
3 is designed for owners who occupy their dwelling or choose to rent it.
sw sw sw sw sw sw sw sw sw sw sw sw sw
Estelle and Richie are very conservative and want to purchase insurance to "cover e
sw sw sw sw sw sw sw sw sw sw sw sw sw
verything" in order to lessen the worries of home ownership. Which one of the follow
sw sw sw sw sw sw sw sw sw sw sw sw sw sw
ing ISO forms will provide them dwelling and personal property insurance with the br
sw sw sw sw sw sw sw sw sw sw sw sw sw
oadest possible coverage? sw sw
Select one: sw
A. HO-2 Broad Form
sw sw sw
B. HO-3 Special Form
sw sw sw
C. HO-5 Comprehensive Form
sw sw sw
D. HO-8 Modified Form - ans-C. HO-5 Comprehensive Form
sw sw sw sw sw sw sw sw
The Agreement and Definitions page of the Personal Auto Policy (PAP) includes
sw sw sw sw sw sw sw sw sw sw sw
Select one: sw
A. The name of the insurer issuing the policy.
sw sw sw sw sw sw sw sw
B. A general agreement stating the insurer's duty to pay damages and defense cost
sw sw sw sw sw sw sw sw sw sw sw sw sw
s subject to the terms of the policy.
sw sw sw sw sw sw sw
, C. A general agreement stating that the insurer is providing the coverage subject to
sw sw sw sw sw sw sw sw sw sw sw sw sw sw
payment of premium and to the terms of the policy.
sw sw sw sw sw sw sw sw sw
D. The name and mailing address of the insured. - ans-
sw sw sw sw sw sw sw sw sw sw
C. A general agreement stating that the insurer is providing the coverage subject to
sw sw sw sw sw sw sw sw sw sw sw sw sw sw
payment of premium and to the terms of the policy.
sw sw sw sw sw sw sw sw sw
In the Personal Auto Policy (PAP) definitions, "Your covered auto" includes all of the
sw sw sw sw sw sw sw sw sw sw sw sw sw
following classes of vehicles, EXCEPT:
sw sw sw sw sw
Select one: sw
A. A trailer owned by the insured
sw sw sw sw sw sw
B. A temporary substitute auto or trailer
sw sw sw sw sw sw
C. A newly acquired auto
sw sw sw sw
D. A trailer rented by the insured - ans-D. A trailer rented by the insured
sw sw sw sw sw sw sw sw sw sw sw sw sw sw
Brendan and Sue were on a road trip along the coast of California, using Sue's car.
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw s
wOne day they were stuck in terrible traffic while Brendan was driving. He became a
sw sw sw sw sw sw sw sw sw sw sw sw sw sw
ngry when another car merged in front of him. A few minutes later, Brendan deliber
sw sw sw sw sw sw sw sw sw sw sw sw sw sw
ately rammed into the car that had cut in front of him, causing property damage to t
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
he other car. Both Brendan and Sure were surprised to learn that Sue's Personal A
sw sw sw sw sw sw sw sw sw sw sw sw sw sw
uto Policy (PAP) would not cover the claim. Which one of the following is the correc
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
t reason why Sue's PAP will not pay the claim for property damage to the other car
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
?
Select one: sw
A. Because the Part A insuring agreement excludes intentional harm.
sw sw sw sw sw sw sw sw sw
B. Because Sue's PAP only covers property damage to her car.
sw sw sw sw sw sw sw sw sw sw
C. Because Brendan, not Sue, was driving the car.
sw sw sw sw sw sw sw sw
D. Because Brendan's PAP should cover the claim. - ans-
sw sw sw sw sw sw sw sw sw
A. Because the Part A insuring agreement excludes intentional harm.
sw sw sw sw sw sw sw sw sw
Miguel, an insured has a Personal Auto Policy (PAP) that includes medical payment
sw sw sw sw sw sw sw sw sw sw sw sw
s coverage. The insured crashed his car while trying to be the first car to pull away
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
from a stop at a red light when the light turned green. In this scenario, Miguel
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
Select one: sw
A. Would be eligible for medical payments under the Personal Auto Policy (PAP) be
sw sw sw sw sw sw sw sw sw sw sw sw sw
cause he wasn't caught speeding at the scene.
sw sw sw sw sw sw sw
B. Would not be eligible for medical payments under the Personal Auto Policy (PAP)
sw sw sw sw sw sw sw sw sw sw sw sw sw
swif he was found at fault because of this accident.
sw sw sw sw sw sw sw sw sw
C. Would be eligible for medical payments under the Personal Auto Policy (PAP) as
sw sw sw sw sw sw sw sw sw sw sw sw sw s
wthe named insured and an occupant of a covered auto.
sw sw sw sw sw sw sw sw sw
D. Would not be eligible for medical payments under the Personal Auto Policy (PAP)
sw sw sw sw sw sw sw sw sw sw sw sw sw
swbecause he is being reckless. - ans- sw sw sw sw sw sw
C. Would be eligible for medical payments under the Personal Auto Policy (PAP) as
sw sw sw sw sw sw sw sw sw sw sw sw sw s
wthe named insured and an occupant of a covered auto.
sw sw sw sw sw sw sw sw sw
The Part B— sw sw
Medical Payments Coverage of the Personal Auto Policy (PAP) contains an Other In
sw sw sw sw sw sw sw sw sw sw sw sw
