AINS102 PRACTICE EXAM
QUESTIONS AND SOLVED ANSWERS
Heather and Jeff had the roof blown off their home during a recent storm. Which on
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
e of the following best expresses the financial outcome they are currently experienci
sw sw sw sw sw sw sw sw sw sw sw sw
ng?
A. sw No change in their financial outcome
sw sw sw sw sw
B. sw Increased expenses sw
C. sw Lost income sw
D. sw Reduction in property value - ans-D. Reduction in property value
sw sw sw sw sw sw sw sw sw
All of the following are considered personal property, EXCEPT:
sw sw sw sw sw sw sw sw
A. sw Cherry tree sw
B. sw Antique piano sw
C. sw Revolver
D. sw Patent - ans-A. Cherry treesw sw sw sw
SF Poultry learned that a number of individuals had become ill and hospitalized afte
sw sw sw sw sw sw sw sw sw sw sw sw sw
r eating chicken from one of its processing plants. The company did not advise the
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
public or its distributors of the problem, and made no effort to recall the spoiled prod
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
uct. Over 50 individuals ended-
sw sw sw sw
up becoming ill from the spoiled chicken. SF Poultry was found liable in court. In ad
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
dition to having to pay the medical and hospital bills for the injured individuals, dam
sw sw sw sw sw sw sw sw sw sw sw sw sw sw
ages were levied against SF Poultry to punish the company for its reckless and dec
sw sw sw sw sw sw sw sw sw sw sw sw sw sw
eitful actions. These damages that were levied against SF Poultry are known as
sw sw sw sw sw sw sw sw sw sw sw sw
A. sw Punitive damages. sw
B. sw Necessary damages. sw
C. sw Special damages. sw
D. sw General damages - ans-A. Punitive damages.
sw sw sw sw sw
Punitive damages are meant to punish a defendant for reckless, malicious, or deceitf
sw sw sw sw sw sw sw sw sw sw sw sw
ul acts and need not bear any relation to the party's actual damages.
sw sw sw sw sw sw sw sw sw sw sw sw
Sophie was involved in an auto accident with another vehicle. The driver of the othe
sw sw sw sw sw sw sw sw sw sw sw sw sw sw
r vehicle was seriously injured. The individual spent 10 days in the hospital, missed
sw sw sw sw sw sw sw sw sw sw sw sw sw sw
2 months of work, and continues to experience mental distress. The other vehicle w
sw sw sw sw sw sw sw sw sw sw sw sw sw
, as also damaged, with repair costs of $5,000. It was determined that Sophie was lia
sw sw sw sw sw sw sw sw sw sw sw sw sw sw
ble for the damages because she ran a red light and caused the accident. Which on
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
e of the following damages would be considered general damages?
sw sw sw sw sw sw sw sw sw
A.sw Damages to the vehicle sw sw sw
B.sw Mental distress compensation sw sw
C. Two months of lost wages
sw sw sw sw sw
D. Hospital and medical bills - ans-B. Mental distress compensation
sw sw sw sw sw sw sw sw sw
General damages, also called direct or necessary damages, are often presumed wh
sw sw sw sw sw sw sw sw sw sw sw
en special damages are proven. General damages can include compensation for pai
sw sw sw sw sw sw sw sw sw sw sw
n and suffering, future effect of disfigurement, loss of a limb, sight, or hearing, as w
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
ell as emotional distress.
sw sw sw
Which one of the following is considered a high-risk driver?
sw sw sw sw sw sw sw sw sw
A.sw Mark was caught and convicted of driving under the influence of alcohol.
sw sw sw sw sw sw sw sw sw sw sw
B.sw Stacey was involved in a deadly car accident.
sw sw sw sw sw sw sw
C. Martin can only qualify for the most expensive auto insurance.
sw sw sw sw sw sw sw sw sw sw
D. Cyndy cannot obtain insurance from a private insurer. - ans-
sw sw sw sw sw sw sw sw sw sw
A.sw Mark was caught and convicted of driving under the influence of alcohol.
sw sw sw sw sw sw sw sw sw sw sw
States A, B, C, and D have addressed the problem of compensating auto accident v
sw sw sw sw sw sw sw sw sw sw sw sw sw sw
ictims differently. Which one of the following most accurately describes the way that
sw sw sw sw sw sw sw sw sw sw sw sw sw
states are handling this issue?
sw sw sw sw
A. State C, a no-
sw sw sw sw
fault state, has enacted auto insurance covering accident victims on a first-
sw sw sw sw sw sw sw sw sw sw sw
party basis, usually applying both to bodily injury and to property damage.
sw sw sw sw sw sw sw sw sw sw sw
B. State A, unlike most states, has enacted a compulsory auto insurance law, requiri
sw sw sw sw sw sw sw sw sw sw sw sw sw
ng motorists to provide proof they have some means to pay for auto accident dama
sw sw sw sw sw sw sw sw sw sw sw sw sw sw
ges.
C. State D, a no-
sw sw sw sw
fault state, has enacted auto insurance covering accident victims on a first-
sw sw sw sw sw sw sw sw sw sw sw
party basis, usually applying to bodily injury and not to property damage.
sw sw sw sw sw sw sw sw sw sw sw
D. State B has enacted a financial responsibility law that requires auto owners to ca
sw sw sw sw sw sw sw sw sw sw sw sw sw sw
rry auto liability insurance at least equal to certain minimum limits. - ans-
sw sw sw sw sw sw sw sw sw sw sw sw
C. State D, a no-
sw sw sw sw
fault state, has enacted auto insurance covering accident victims on a first-
sw sw sw sw sw sw sw sw sw sw sw
party basis, usually applying to bodily injury and not to property damage.
sw sw sw sw sw sw sw sw sw sw sw
Which one of the following is true regarding the use of technology in home risk man
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
agement?
A. Smart devices in the home have reaffirmed the need for existing claims data to a
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
ssess risk. sw
QUESTIONS AND SOLVED ANSWERS
Heather and Jeff had the roof blown off their home during a recent storm. Which on
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
e of the following best expresses the financial outcome they are currently experienci
sw sw sw sw sw sw sw sw sw sw sw sw
ng?
A. sw No change in their financial outcome
sw sw sw sw sw
B. sw Increased expenses sw
C. sw Lost income sw
D. sw Reduction in property value - ans-D. Reduction in property value
sw sw sw sw sw sw sw sw sw
All of the following are considered personal property, EXCEPT:
sw sw sw sw sw sw sw sw
A. sw Cherry tree sw
B. sw Antique piano sw
C. sw Revolver
D. sw Patent - ans-A. Cherry treesw sw sw sw
SF Poultry learned that a number of individuals had become ill and hospitalized afte
sw sw sw sw sw sw sw sw sw sw sw sw sw
r eating chicken from one of its processing plants. The company did not advise the
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
public or its distributors of the problem, and made no effort to recall the spoiled prod
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
uct. Over 50 individuals ended-
sw sw sw sw
up becoming ill from the spoiled chicken. SF Poultry was found liable in court. In ad
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
dition to having to pay the medical and hospital bills for the injured individuals, dam
sw sw sw sw sw sw sw sw sw sw sw sw sw sw
ages were levied against SF Poultry to punish the company for its reckless and dec
sw sw sw sw sw sw sw sw sw sw sw sw sw sw
eitful actions. These damages that were levied against SF Poultry are known as
sw sw sw sw sw sw sw sw sw sw sw sw
A. sw Punitive damages. sw
B. sw Necessary damages. sw
C. sw Special damages. sw
D. sw General damages - ans-A. Punitive damages.
sw sw sw sw sw
Punitive damages are meant to punish a defendant for reckless, malicious, or deceitf
sw sw sw sw sw sw sw sw sw sw sw sw
ul acts and need not bear any relation to the party's actual damages.
sw sw sw sw sw sw sw sw sw sw sw sw
Sophie was involved in an auto accident with another vehicle. The driver of the othe
sw sw sw sw sw sw sw sw sw sw sw sw sw sw
r vehicle was seriously injured. The individual spent 10 days in the hospital, missed
sw sw sw sw sw sw sw sw sw sw sw sw sw sw
2 months of work, and continues to experience mental distress. The other vehicle w
sw sw sw sw sw sw sw sw sw sw sw sw sw
, as also damaged, with repair costs of $5,000. It was determined that Sophie was lia
sw sw sw sw sw sw sw sw sw sw sw sw sw sw
ble for the damages because she ran a red light and caused the accident. Which on
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
e of the following damages would be considered general damages?
sw sw sw sw sw sw sw sw sw
A.sw Damages to the vehicle sw sw sw
B.sw Mental distress compensation sw sw
C. Two months of lost wages
sw sw sw sw sw
D. Hospital and medical bills - ans-B. Mental distress compensation
sw sw sw sw sw sw sw sw sw
General damages, also called direct or necessary damages, are often presumed wh
sw sw sw sw sw sw sw sw sw sw sw
en special damages are proven. General damages can include compensation for pai
sw sw sw sw sw sw sw sw sw sw sw
n and suffering, future effect of disfigurement, loss of a limb, sight, or hearing, as w
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
ell as emotional distress.
sw sw sw
Which one of the following is considered a high-risk driver?
sw sw sw sw sw sw sw sw sw
A.sw Mark was caught and convicted of driving under the influence of alcohol.
sw sw sw sw sw sw sw sw sw sw sw
B.sw Stacey was involved in a deadly car accident.
sw sw sw sw sw sw sw
C. Martin can only qualify for the most expensive auto insurance.
sw sw sw sw sw sw sw sw sw sw
D. Cyndy cannot obtain insurance from a private insurer. - ans-
sw sw sw sw sw sw sw sw sw sw
A.sw Mark was caught and convicted of driving under the influence of alcohol.
sw sw sw sw sw sw sw sw sw sw sw
States A, B, C, and D have addressed the problem of compensating auto accident v
sw sw sw sw sw sw sw sw sw sw sw sw sw sw
ictims differently. Which one of the following most accurately describes the way that
sw sw sw sw sw sw sw sw sw sw sw sw sw
states are handling this issue?
sw sw sw sw
A. State C, a no-
sw sw sw sw
fault state, has enacted auto insurance covering accident victims on a first-
sw sw sw sw sw sw sw sw sw sw sw
party basis, usually applying both to bodily injury and to property damage.
sw sw sw sw sw sw sw sw sw sw sw
B. State A, unlike most states, has enacted a compulsory auto insurance law, requiri
sw sw sw sw sw sw sw sw sw sw sw sw sw
ng motorists to provide proof they have some means to pay for auto accident dama
sw sw sw sw sw sw sw sw sw sw sw sw sw sw
ges.
C. State D, a no-
sw sw sw sw
fault state, has enacted auto insurance covering accident victims on a first-
sw sw sw sw sw sw sw sw sw sw sw
party basis, usually applying to bodily injury and not to property damage.
sw sw sw sw sw sw sw sw sw sw sw
D. State B has enacted a financial responsibility law that requires auto owners to ca
sw sw sw sw sw sw sw sw sw sw sw sw sw sw
rry auto liability insurance at least equal to certain minimum limits. - ans-
sw sw sw sw sw sw sw sw sw sw sw sw
C. State D, a no-
sw sw sw sw
fault state, has enacted auto insurance covering accident victims on a first-
sw sw sw sw sw sw sw sw sw sw sw
party basis, usually applying to bodily injury and not to property damage.
sw sw sw sw sw sw sw sw sw sw sw
Which one of the following is true regarding the use of technology in home risk man
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
agement?
A. Smart devices in the home have reaffirmed the need for existing claims data to a
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
ssess risk. sw
