AINS 102 COURSE QUIZ QUESTIONS AND SOLVED ANSWERS

AINS 102 COURSE QUIZ QUESTIONS
AND SOLVED ANSWERS


Patrick's car is 12 years- sw sw sw sw


old and has been driven for over 100,000 miles. He has decided that instead of con
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw


tinuing to pay insurance premium for coverage for property damage to his car, he wi
sw sw sw sw sw sw sw sw sw sw sw sw sw sw


ll put the money aside to save for a new car. Which one of the following risk manag
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw


ement techniques is Patrick using?
sw sw sw sw




A) sw Loss reduction sw


B) sw Avoidance
C) sw Retention
D) sw Diversification - ans-C sw sw




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 Lost income sw


B) sw Reduction in property value sw sw sw


C) sw Increased expenses sw


D) sw No change in their financial outcome - ans-B
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 Hospital and medical bills sw sw sw


C) sw Two months of lost wages
sw sw sw sw


D) sw Mental distress compensation - ans-D
sw 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 Special damages. sw


C) sw General damages. sw


D) sw Necessary damages. - ans-A 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 Stacey was involved in a deadly car accident.
sw sw sw sw sw sw sw


B) sw Mark was caught and convicted of driving under the influence of alcohol
sw sw sw sw sw sw sw sw sw sw sw


C) sw Martin can only qualify for the most expensive auto insurance
sw sw sw sw sw sw sw sw sw


D) sw Cyndy cannot obtain insurance from a private insurer - ans-B
sw sw sw sw sw sw sw sw sw




Coverage that pays benefits, regardless of fault, for medical expense, income loss, a
sw sw sw sw sw sw sw sw sw sw sw sw


nd other benefits, resulting from bodily injury to occupants of a covered auto is
sw sw sw sw sw sw sw sw sw sw sw sw sw




A) sw Compulsory auto insurance law coverage sw sw sw sw


B) sw Residual market coverage sw sw


C) sw Personal injury protection coverage sw sw sw


D) sw Financial responsibility law coverage - ans-C
sw sw sw sw sw




All of the following are true of the HO-3 Special Form, EXCEPT:
sw sw sw sw sw sw sw sw sw sw 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 can be modified for special needs through available endorsements.
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 meets the property and liability coverage needs of most families. -
sw sw sw sw sw sw sw sw sw sw sw sw sw


ans-A
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


B) Data gathered from sensors is used by insurers for personalized pricing and clai
sw sw sw sw sw sw sw sw sw sw sw sw sw


ms handling.
sw