AINS 102 Test Questions and Correct Answers
1. John is a recent homeowner and is considering the insurance coverages
he needs for his home and contents. If damaged by a peril covered by a
homeowners policy, which one of the following would be considered part of
John's real property?
Select one:
A. The boat in the driveway
B. The detached garage
C. The desk top computer
D. The hockey net and equipment ANSWER -B. The detached garage
2. Which one of the following is considered real property?
Select one:
A. An automobile
B. A house
C. Furniture
D. A motorhome ANSWER -B. A house
3. All of the following could lead to a liability loss for a family, EXCEPT
ANSWER -Select one:
A. The father trips on a broom he left lying in the driveway and breaks his arm.
B. The son, who is 13 years old, throws a rock at a classmate who requires
stitches for an injury to his head.
C. A guest slips on an icy sidewalk in front of the family's home and breaks his
leg.
D. The daughter, who is 16 years old, sideswipes a neighbor's car and dents its
fender while driving her own car. ANSWER -A. The father trips on a broom he left lying in the
driveway and breaks his arm.
4. Which one of the following is a form of compensatory damages?
Select one:
A. Real damages
B. Special damages
C. Punitive damages
D. Exemplary damages ANSWER -B. Special damages
, AINS 102 Test Questions and Correct Answers
5. Which one of the following is used by the majority of states to compensate
auto accident victims?
Select one:
A. Personal injury protection coverage
B. Tort liability system
C. Uninsured motorist coverage
D. Unsatisfied judgment funds ANSWER -B. Tort liability system
6. Which one of the following statements is true regarding automobile insur-
ance rating?
Select one:
A. State regulators require that all insurers offer discounts on auto rates for
passive restraints.
B. Most insurers base automobile rates on primary rating factors and do not
consider any other factors in establishing rates.
C. State regulators require that rates be adequate, reasonable, and not unfairly
discriminatory.
D. Drivers with lower-than-average loss exposure are charged higher rates.
ANSWER -C. State regulators require that rates be adequate, reasonable, and not unfairly discriminatory.
7. All of the following are true of the HO-3 Special Form, EXCEPT
ANSWER -Select one:
A. The HO-3 is designed for owners who occupy their dwelling or choose to rent
it.
B. The HO-3 meets the property and liability coverage needs of most families.
C. The HO-3 is typically used as a basis for understanding other HO coverage
forms.
D. The HO-3 can be modified for special needs through available endorse-
ments. ANSWER -A. The HO-3 is designed for owners who occupy their dwelling or choose to rent it.
8. Estelle and Richie are very conservative and want to purchase insurance to
"cover everything" in order to lessen the worries of home ownership. Which one
of the following ISO forms will provide them dwelling and personal property
insurance with the broadest possible coverage?
Select one:
, AINS 102 Test Questions and Correct Answers
A. HO-2 Broad Form
B. HO-3 Special Form
C. HO-5 Comprehensive Form
D. HO-8 Modified Form ANSWER -C. HO-5 Comprehensive Form
9. The Agreement and Definitions page of the Personal Auto Policy (PAP) in-
cludes
Select one:
A. The name of the insurer issuing the policy.
B. A general agreement stating the insurer's duty to pay damages and defense
costs subject to the terms of the policy.
C. A general agreement stating that the insurer is providing the coverage
subject to payment of premium and to the terms of the policy.
D. The name and mailing address of the insured. ANSWER -C. A general agreement
stating that the insurer is providing the coverage subject to payment of premium and to the terms of the
policy.
10. In the Personal Auto Policy (PAP) definitions, "Your covered auto" includes all
of the following classes of vehicles, EXCEPT:
Select one:
A. A trailer owned by the insured
B. A temporary substitute auto or trailer
C. A newly acquired auto
D. A trailer rented by the insured ANSWER -D. A trailer rented by the insured
11. Brendan and Sue were on a road trip along the coast of California, using Sue's
car. One day they were stuck in terrible traffic while Brendan was driving. He
became angry when another car merged in front of him. A few minutes later,
Brendan deliberately rammed into the car that had cut in front of him, causing
property damage to the other car. Both Brendan and Sure were surprised to
learn that Sue's Personal Auto Policy (PAP) would not cover the claim. Which
one of the following is the correct reason why Sue's PAP will not pay the claim
for property damage to the other car?
Select one:
A. Because the Part A insuring agreement excludes intentional harm.
, AINS 102 Test Questions and Correct Answers
B. Because Sue's PAP only covers property damage to her car.
1. John is a recent homeowner and is considering the insurance coverages
he needs for his home and contents. If damaged by a peril covered by a
homeowners policy, which one of the following would be considered part of
John's real property?
Select one:
A. The boat in the driveway
B. The detached garage
C. The desk top computer
D. The hockey net and equipment ANSWER -B. The detached garage
2. Which one of the following is considered real property?
Select one:
A. An automobile
B. A house
C. Furniture
D. A motorhome ANSWER -B. A house
3. All of the following could lead to a liability loss for a family, EXCEPT
ANSWER -Select one:
A. The father trips on a broom he left lying in the driveway and breaks his arm.
B. The son, who is 13 years old, throws a rock at a classmate who requires
stitches for an injury to his head.
C. A guest slips on an icy sidewalk in front of the family's home and breaks his
leg.
D. The daughter, who is 16 years old, sideswipes a neighbor's car and dents its
fender while driving her own car. ANSWER -A. The father trips on a broom he left lying in the
driveway and breaks his arm.
4. Which one of the following is a form of compensatory damages?
Select one:
A. Real damages
B. Special damages
C. Punitive damages
D. Exemplary damages ANSWER -B. Special damages
, AINS 102 Test Questions and Correct Answers
5. Which one of the following is used by the majority of states to compensate
auto accident victims?
Select one:
A. Personal injury protection coverage
B. Tort liability system
C. Uninsured motorist coverage
D. Unsatisfied judgment funds ANSWER -B. Tort liability system
6. Which one of the following statements is true regarding automobile insur-
ance rating?
Select one:
A. State regulators require that all insurers offer discounts on auto rates for
passive restraints.
B. Most insurers base automobile rates on primary rating factors and do not
consider any other factors in establishing rates.
C. State regulators require that rates be adequate, reasonable, and not unfairly
discriminatory.
D. Drivers with lower-than-average loss exposure are charged higher rates.
ANSWER -C. State regulators require that rates be adequate, reasonable, and not unfairly discriminatory.
7. All of the following are true of the HO-3 Special Form, EXCEPT
ANSWER -Select one:
A. The HO-3 is designed for owners who occupy their dwelling or choose to rent
it.
B. The HO-3 meets the property and liability coverage needs of most families.
C. The HO-3 is typically used as a basis for understanding other HO coverage
forms.
D. The HO-3 can be modified for special needs through available endorse-
ments. ANSWER -A. The HO-3 is designed for owners who occupy their dwelling or choose to rent it.
8. Estelle and Richie are very conservative and want to purchase insurance to
"cover everything" in order to lessen the worries of home ownership. Which one
of the following ISO forms will provide them dwelling and personal property
insurance with the broadest possible coverage?
Select one:
, AINS 102 Test Questions and Correct Answers
A. HO-2 Broad Form
B. HO-3 Special Form
C. HO-5 Comprehensive Form
D. HO-8 Modified Form ANSWER -C. HO-5 Comprehensive Form
9. The Agreement and Definitions page of the Personal Auto Policy (PAP) in-
cludes
Select one:
A. The name of the insurer issuing the policy.
B. A general agreement stating the insurer's duty to pay damages and defense
costs subject to the terms of the policy.
C. A general agreement stating that the insurer is providing the coverage
subject to payment of premium and to the terms of the policy.
D. The name and mailing address of the insured. ANSWER -C. A general agreement
stating that the insurer is providing the coverage subject to payment of premium and to the terms of the
policy.
10. In the Personal Auto Policy (PAP) definitions, "Your covered auto" includes all
of the following classes of vehicles, EXCEPT:
Select one:
A. A trailer owned by the insured
B. A temporary substitute auto or trailer
C. A newly acquired auto
D. A trailer rented by the insured ANSWER -D. A trailer rented by the insured
11. Brendan and Sue were on a road trip along the coast of California, using Sue's
car. One day they were stuck in terrible traffic while Brendan was driving. He
became angry when another car merged in front of him. A few minutes later,
Brendan deliberately rammed into the car that had cut in front of him, causing
property damage to the other car. Both Brendan and Sure were surprised to
learn that Sue's Personal Auto Policy (PAP) would not cover the claim. Which
one of the following is the correct reason why Sue's PAP will not pay the claim
for property damage to the other car?
Select one:
A. Because the Part A insuring agreement excludes intentional harm.
, AINS 102 Test Questions and Correct Answers
B. Because Sue's PAP only covers property damage to her car.
