AINS 102 Comprehensive Questions and Correct Answers
1. General Forms for personal property Answer -three general forms that are commonly used
to provide coverage on a single form for ditterent types of personal property:
Personal Articles Standard Loss Settlement Form - provides special form coverage for several classes of personal
property. there's a specific amount for each class of article
Exclusions Answer -wear and tear, deterioration, inherent vice, insects or vermin
Personal Property Form - provides special form coverage on unscheduled personal property under used by the insured
and normally kept at the insured residence. the same form provides worldwide coverage when the same property is
temporarily away from the premises. this form can be used to ensure 13 classes of unscheduled personal property with
a separate amount for each class. can be used to insure the property in his self-storage unit
Personal Ettects form - is designed for frequent travelers. provides coverage on personal property such as luggage,
clothes and cameras. it covers worldwide, but only when it is away from the insured's residence, not in storage.
2. Damaged or destroyed property can result in these outcomes Answer -Reduction
in property
value—The ditterence between the value of the property before the loss (pre-loss value) and after the loss (post-loss
value)
Increased expenses—Expenses in addition to normal living expenses that are necessary because of the loss, such as
the cost of renting a hotel room following a house fire*
Lost income—Loss of income that results when property is damaged or destroyed, such as the loss of rent that can be
collected on a property that is damaged by a hurricane*
3. real property (realty)* Answer -Land, buildings, other structures attached to the land (swimming pool,
storage
shed, flagpole), anything growing on the land (trees, crops), and anything embedded in the land (foundations,
underground pipes, minerals)
4. personal property Answer -Dwelling contents (furniture, electronics), high-value property (jewelry,
silverware,
firearms), rare or unique property (antiques, artwork), business personal property (supplies, machinery), intangible
property (patents, copyrights), motor vehicles, trailers, watercraft, and aircraft
5. Risk control techniques Answer -Avoidance
Loss Prevention
Loss reduction
Separation
, AINS 102 Comprehensive Questions and Correct Answers
Duplication
Diversification
, AINS 102 Comprehensive Questions and Correct Answers
6. risk financing techniques Answer -retention and transfer
7. What are two risk management techniques? Answer -Risk control - reduce the frequency or
severity of a particular loss, make the loss more predictable*
Risk Financing- generate the funds to pay for losses or risk control measures
8. Avoidance Answer -ceasing an activity or deciding not to engage in it so that the possiblity of future loss is
eliminated
9. Loss prevention Answer -reduces the frequency of a particular loss. to break the sequence of events that
lead to a loss
10. Loss Reduction Answer -reduces the severity of a particular loss.
11. Separation Answer -isolates loss of exposure from one another to minimize the adverse attect of a similar los
12. Duplication Answer -creating backups, spares, or copies of property or information
13. Diversification Answer -Spreads loss exposures over numerous areas or projects
14. retention Answer -Funds are generated or set aside to pay for losses that are retained by the individual or
family
15. Transfer Answer -shifting the financial responsibility for losses on to another party, like an insurer
16. When a liability claim occurs, an individual or a family can suffer two major
financial consequences.* Answer -1. having to pay money damages if the legal defense isn't successful or
if the claim is settled out of court.*
2. having to pay the costs of a legal investigation and defense (even if the defense is successful).*
17. Damages in a liability suit Answer -Often in the form of special and/or general damages
18. Special damages Answer -Particular damages or out-of-pocket losses; can include the amount spent to
restore lost property, hospital, and doctor bills and related expenses for bodily injury, and loss of wages and
earnings
19. General damages (compensatory) Answer -direct damages or necessary damages; often
presumed when special damages are proven; can include compensation for non-financial losses i.e. pain, suttering,
future ettect of disfigurement, loss of limb, sight or hearing, as well as emotional distress
20. Punitive Damages Answer -Money damages that may be awarded to a plaintitt to punish the defendant a
deter
future similar conduct i.e. reckless, malicious, or deceitful acts. Often imposed on companies.
21. Civil Law Answer -the system of law concerned with private relations between members of a community
rather than criminal, military, or religious attairs. Often liability cases fall under civil law
22. Compulsory auto insurance law Answer -Law that requires the owners or operators of automobiles
, AINS 102 Comprehensive Questions and Correct Answers
to carry automobile liability insurance at least equal to certain minimum limits before the vehicle can be licensed or
registered.
23. financial responsibility law Answer -Law that requires drivers to prove that they can pay for damage
or injury caused by an automobile accident
1. General Forms for personal property Answer -three general forms that are commonly used
to provide coverage on a single form for ditterent types of personal property:
Personal Articles Standard Loss Settlement Form - provides special form coverage for several classes of personal
property. there's a specific amount for each class of article
Exclusions Answer -wear and tear, deterioration, inherent vice, insects or vermin
Personal Property Form - provides special form coverage on unscheduled personal property under used by the insured
and normally kept at the insured residence. the same form provides worldwide coverage when the same property is
temporarily away from the premises. this form can be used to ensure 13 classes of unscheduled personal property with
a separate amount for each class. can be used to insure the property in his self-storage unit
Personal Ettects form - is designed for frequent travelers. provides coverage on personal property such as luggage,
clothes and cameras. it covers worldwide, but only when it is away from the insured's residence, not in storage.
2. Damaged or destroyed property can result in these outcomes Answer -Reduction
in property
value—The ditterence between the value of the property before the loss (pre-loss value) and after the loss (post-loss
value)
Increased expenses—Expenses in addition to normal living expenses that are necessary because of the loss, such as
the cost of renting a hotel room following a house fire*
Lost income—Loss of income that results when property is damaged or destroyed, such as the loss of rent that can be
collected on a property that is damaged by a hurricane*
3. real property (realty)* Answer -Land, buildings, other structures attached to the land (swimming pool,
storage
shed, flagpole), anything growing on the land (trees, crops), and anything embedded in the land (foundations,
underground pipes, minerals)
4. personal property Answer -Dwelling contents (furniture, electronics), high-value property (jewelry,
silverware,
firearms), rare or unique property (antiques, artwork), business personal property (supplies, machinery), intangible
property (patents, copyrights), motor vehicles, trailers, watercraft, and aircraft
5. Risk control techniques Answer -Avoidance
Loss Prevention
Loss reduction
Separation
, AINS 102 Comprehensive Questions and Correct Answers
Duplication
Diversification
, AINS 102 Comprehensive Questions and Correct Answers
6. risk financing techniques Answer -retention and transfer
7. What are two risk management techniques? Answer -Risk control - reduce the frequency or
severity of a particular loss, make the loss more predictable*
Risk Financing- generate the funds to pay for losses or risk control measures
8. Avoidance Answer -ceasing an activity or deciding not to engage in it so that the possiblity of future loss is
eliminated
9. Loss prevention Answer -reduces the frequency of a particular loss. to break the sequence of events that
lead to a loss
10. Loss Reduction Answer -reduces the severity of a particular loss.
11. Separation Answer -isolates loss of exposure from one another to minimize the adverse attect of a similar los
12. Duplication Answer -creating backups, spares, or copies of property or information
13. Diversification Answer -Spreads loss exposures over numerous areas or projects
14. retention Answer -Funds are generated or set aside to pay for losses that are retained by the individual or
family
15. Transfer Answer -shifting the financial responsibility for losses on to another party, like an insurer
16. When a liability claim occurs, an individual or a family can suffer two major
financial consequences.* Answer -1. having to pay money damages if the legal defense isn't successful or
if the claim is settled out of court.*
2. having to pay the costs of a legal investigation and defense (even if the defense is successful).*
17. Damages in a liability suit Answer -Often in the form of special and/or general damages
18. Special damages Answer -Particular damages or out-of-pocket losses; can include the amount spent to
restore lost property, hospital, and doctor bills and related expenses for bodily injury, and loss of wages and
earnings
19. General damages (compensatory) Answer -direct damages or necessary damages; often
presumed when special damages are proven; can include compensation for non-financial losses i.e. pain, suttering,
future ettect of disfigurement, loss of limb, sight or hearing, as well as emotional distress
20. Punitive Damages Answer -Money damages that may be awarded to a plaintitt to punish the defendant a
deter
future similar conduct i.e. reckless, malicious, or deceitful acts. Often imposed on companies.
21. Civil Law Answer -the system of law concerned with private relations between members of a community
rather than criminal, military, or religious attairs. Often liability cases fall under civil law
22. Compulsory auto insurance law Answer -Law that requires the owners or operators of automobiles
, AINS 102 Comprehensive Questions and Correct Answers
to carry automobile liability insurance at least equal to certain minimum limits before the vehicle can be licensed or
registered.
23. financial responsibility law Answer -Law that requires drivers to prove that they can pay for damage
or injury caused by an automobile accident
