AINS 102 QUESTIONS AND SOLVED ANSWERS

AINS 102 QUESTIONS AND SOLVED
ANSWERS



Property loss exposure - ans- sw sw sw sw


A condition that presents the possibility that a person or an organization will sustain
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a loss resulting from damage (including destruction, taking, or loss of use) to propert
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y in which that person or organization has a financial interest.
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Real property (realty) - ans-
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Tangible property consisting of land, all structures permanently attached to the land,
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and whatever is growing on the land.
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Personal property - ans-All tangible or intangible property that is not real property.
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Deductible - ans-A portion of a covered loss that is not paid by the insurer.
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Liability loss exposure - ans-
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Any condition or situation that presents the possibility of a claim alleging legal respo
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nsibility of a person or business for injury or damage suffered by another party.
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Damages - ans- sw sw


Money claimed by, or a monetary award to, a party who has suffered loss or injury f
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or which another party is legally responsible.
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Special damages - ans- sw sw sw


A form of compensatory damages that awards a sum of money for specific, identifia
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ble expenses associated with the injured person's loss, such as medical expenses o
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r lost wages.
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General damages - ans- sw sw sw


A monetary award to compensate a victim for losses, such as pain and suffering, th
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at do not involve specific, measurable expenses.
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Punitive damages - ans- sw sw sw


A payment awarded by a court to punish a defendant for a reckless, malicious, or d
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,eceitful act to deter similar conduct; the award need not bear any relation to a party'
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s actual damages.
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Civil law - ans-sw sw sw


A classification of law that applies to legal matters not governed by criminal law and
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that protects rights and provides remedies for breaches of duties owed to others.
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Criminal law - ans- sw sw sw


The branch of the law that imposes penalties for wrongs against society.
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Tort - ans- sw sw


A wrongful act or an omission, other than a crime or a breach of contract, that inva
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des a legally protected right.
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Negligence - ans- sw sw


The failure to exercise the degree of care that a reasonable person in a similar situa
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tion would exercise to avoid harming others.
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Intentional tort - ans- sw sw sw


A tort committed by a person who foresees (or should be able to foresee) that his o
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r her act will harm another person.
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Strict liability - ans-
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Liability imposed by a court or by a statute in the absence of fault when harm result
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s from activities or conditions that are extremely dangerous, unnatural, ultrahazardou
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s, extraordinary, abnormal, or inappropriate.
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Compulsory auto insurance law - ans- sw sw sw sw sw


Law that requires the owners or operators of automobiles to carry automobile liability
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insurance at least equal to certain minimum limits before the vehicle can be license
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d or registered.
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Financial responsibility laws - ans- sw sw sw sw


Law enacted to ensure that motorists have the financial ability to pay for any propert
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y damage or bodily injury they might cause as a result of driving or owning an auto.
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Personal injury protection (PIP) coverage - ans-
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Coverage that pays benefits, regardless of fault, for medical expense, income loss, a
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nd other benefits, resulting from bodily injury to occupants of a covered auto.
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Residual market - ans- sw sw sw


The term referring collectively to insurers and other organizations that make insuranc
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e available through a shared risk mechanism to those who cannot obtain coverage i
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n the admitted market.
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, Internet of Things (IoT) - ans- sw sw sw sw sw


A network of objects that transmit data to each other and to central hubs through th
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e internet.
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First party - ans-The insured in an insurance contract.
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Open perils coverage - ans-
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A type of policy or coverage that insures against risks of direct physical loss except
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for those specifically excluded or limited by the policy.
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Named perils coverage - ans-sw sw sw sw


An insurance policy in which the covered causes of loss are listed or "named" in the
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policy.
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D. Underground pipes - ans-
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All of the following items are examples of personal property, EXCEPT:
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A. Sports equipment
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B. Silverware
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C. A fishing boat
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D. Underground pipes
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C. The detached garage - ans-
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John is a recent homeowner and is considering the insurance coverages he needs f
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or his home and contents. If damaged by a peril covered by a homeowners policy,
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which one of the following would be considered part of John's real property?
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A. The desk top computer
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B. The boat in the driveway
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C. The detached garage
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D. The hockey net and equipment
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C. Intentional tort - ans-
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Paul was charged with assault and battery after he punched and injured his neighbo
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r Tom, who repeatedly walked his dog on Paul's property. Which one of the followin
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g types of tort does this represent?
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A. Strict liability
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B. Negligence
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C. Intentional tort
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D. Exemplary tort
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D. Mental distress compensation - ans-
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Sophie was involved in an auto accident with another vehicle. The driver of the othe
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r vehicle was seriously injured. The individual spent 10 days in the hospital, missed
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2 months of work, and continues to experience mental distress. The other vehicle w
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as also damaged, with repair costs of $5,000. It was determined that Sophie was lia
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ble for the damages because she ran a red light and caused the accident. Which on
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e of the following damages would be considered general damages?
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