AINS 102 MIDTERM EXAM CORRECT QUESTIONS
AND ANSWERS RATED A+
✔✔Special form coverage - ✔✔Property insurance coverage covering all causes of loss
not specifically excluded.
✔✔Scheduled coverage - ✔✔Insurance for property specifically listed (scheduled) on a
policy, with a limit of liability for each item.
✔✔Unscheduled property - ✔✔Property not specifically listed (scheduled) on a policy
but generally covered with a single limit for all items (or each class) of property that are
not excluded.
✔✔Perils of the seas - ✔✔Accidental causes of loss that are peculiar to the sea and
other bodies of water.
✔✔Warranty - ✔✔A promise made by an insured that guarantees compliance with the
insurer's conditions.
✔✔Hull insurance - ✔✔Insurance that covers physical damage to vessels, including
their machinery and fuel but not their cargo.
✔✔C. They live in one unit of a four-family dwelling and rent out the others. - ✔✔Jack
and Bobbie own several properties. Which one of the following would be their only
property that could be insured by an HO-3 policy?
A. They own a mobile home that is permanently situated in a thriving community.
B. They have purchased a beach house that is currently under construction.
C. They live in one unit of a four-family dwelling and rent out the others.
D. They own another four-family dwelling and rent out all four units.
✔✔A. No coverage - ✔✔The Jordans own a small ranch, and keep several ponies on
the property for their personal use. Mr. and Mrs. Jordan are concerned that their
, children's friends and visiting relatives could be injured when riding the family's ponies.
What coverage would the unendorsed DP-3 policy provide for this loss exposure?
A. No coverage
B. Full coverage, up to the policy limits
C. Medical expenses only, up to $2,000
D. 20% of the Coverage A limit
✔✔A. Participating Insurers write flood insurance using National Flood Insurance
Program guidelines. - ✔✔The "Write Your Own" (WYO) flood insurance program allows
A. Participating Insurers write flood insurance using National Flood Insurance Program
guidelines.
B. Insureds to purchase flood coverage without an agent or representative.
C. Insureds to carry flood coverage regardless of the property's location.
D. Insureds to tailor flood coverage to their own specific needs.
✔✔B. The emergency program. - ✔✔Westgrove is in the initial phase of its community's
participation in the National Flood Insurance Program (NFIP), during which property
owners are allowed to purchase limited amounts of insurance at subsidized rates. This
is known as
A. The regular program.
B. The emergency program.
C. The "Write-Your-Own" flood insurance program.
D. A beachfront or windstorm plan.
✔✔D. Several classes of personal property with a specific amount of insurance shown
for each class of property or for each specific article. Examples include jewelry and fine
arts. - ✔✔The Personal Articles Standard Loss Settlement Form provides special form
coverage for
A. Personal property, such as luggage, normally carried by tourists and travelers.
B. Unscheduled personal property owned or used by the insured and normally kept at
the insured's residence. Examples include clothing and household furniture.
C. Property normally kept in personally owned watercraft but not attached to the
watercraft.
D. Several classes of personal property with a specific amount of insurance shown for
each class of property or for each specific article. Examples include jewelry and fine
arts.
✔✔C. Personal Effects Form - ✔✔Roger and Sarah sold their house and plan to travel
around the world for one year. They placed their furniture and appliances in storage and
will take luggage and cameras on their trip. Sarah will travel with her diamond
engagement ring. Jeff, their insurance agent, canceled their homeowners policy soon
after the house was sold.
Which one of the following types of personal inland marine forms should Jeff
recommend to Roger and Sarah to protect their luggage on the trip?
A. Personal Articles Standard Loss Settlement Form
B. Personal Property Form
AND ANSWERS RATED A+
✔✔Special form coverage - ✔✔Property insurance coverage covering all causes of loss
not specifically excluded.
✔✔Scheduled coverage - ✔✔Insurance for property specifically listed (scheduled) on a
policy, with a limit of liability for each item.
✔✔Unscheduled property - ✔✔Property not specifically listed (scheduled) on a policy
but generally covered with a single limit for all items (or each class) of property that are
not excluded.
✔✔Perils of the seas - ✔✔Accidental causes of loss that are peculiar to the sea and
other bodies of water.
✔✔Warranty - ✔✔A promise made by an insured that guarantees compliance with the
insurer's conditions.
✔✔Hull insurance - ✔✔Insurance that covers physical damage to vessels, including
their machinery and fuel but not their cargo.
✔✔C. They live in one unit of a four-family dwelling and rent out the others. - ✔✔Jack
and Bobbie own several properties. Which one of the following would be their only
property that could be insured by an HO-3 policy?
A. They own a mobile home that is permanently situated in a thriving community.
B. They have purchased a beach house that is currently under construction.
C. They live in one unit of a four-family dwelling and rent out the others.
D. They own another four-family dwelling and rent out all four units.
✔✔A. No coverage - ✔✔The Jordans own a small ranch, and keep several ponies on
the property for their personal use. Mr. and Mrs. Jordan are concerned that their
, children's friends and visiting relatives could be injured when riding the family's ponies.
What coverage would the unendorsed DP-3 policy provide for this loss exposure?
A. No coverage
B. Full coverage, up to the policy limits
C. Medical expenses only, up to $2,000
D. 20% of the Coverage A limit
✔✔A. Participating Insurers write flood insurance using National Flood Insurance
Program guidelines. - ✔✔The "Write Your Own" (WYO) flood insurance program allows
A. Participating Insurers write flood insurance using National Flood Insurance Program
guidelines.
B. Insureds to purchase flood coverage without an agent or representative.
C. Insureds to carry flood coverage regardless of the property's location.
D. Insureds to tailor flood coverage to their own specific needs.
✔✔B. The emergency program. - ✔✔Westgrove is in the initial phase of its community's
participation in the National Flood Insurance Program (NFIP), during which property
owners are allowed to purchase limited amounts of insurance at subsidized rates. This
is known as
A. The regular program.
B. The emergency program.
C. The "Write-Your-Own" flood insurance program.
D. A beachfront or windstorm plan.
✔✔D. Several classes of personal property with a specific amount of insurance shown
for each class of property or for each specific article. Examples include jewelry and fine
arts. - ✔✔The Personal Articles Standard Loss Settlement Form provides special form
coverage for
A. Personal property, such as luggage, normally carried by tourists and travelers.
B. Unscheduled personal property owned or used by the insured and normally kept at
the insured's residence. Examples include clothing and household furniture.
C. Property normally kept in personally owned watercraft but not attached to the
watercraft.
D. Several classes of personal property with a specific amount of insurance shown for
each class of property or for each specific article. Examples include jewelry and fine
arts.
✔✔C. Personal Effects Form - ✔✔Roger and Sarah sold their house and plan to travel
around the world for one year. They placed their furniture and appliances in storage and
will take luggage and cameras on their trip. Sarah will travel with her diamond
engagement ring. Jeff, their insurance agent, canceled their homeowners policy soon
after the house was sold.
Which one of the following types of personal inland marine forms should Jeff
recommend to Roger and Sarah to protect their luggage on the trip?
A. Personal Articles Standard Loss Settlement Form
B. Personal Property Form
