AINS 102 STUDY EXAMS GUIDE REVIEW QUESTIONS
AND ANSWERS RATED A+
✔✔B. Would be eligible for medical payments under the Personal Auto Policy (PAP) as
the named insured and an occupant of a covered auto. - ✔✔Miguel, an insured has a
Personal Auto Policy (PAP) that includes medical payments coverage. The insured
crashed his car while trying to be the first car to pull away from a stop at a red light
when the light turned green. In this scenario, Miguel
A. Would not be eligible for medical payments under the Personal Auto Policy (PAP)
because he is being reckless.
B. Would be eligible for medical payments under the Personal Auto Policy (PAP) as the
named insured and an occupant of a covered auto.
C. Would not be eligible for medical payments under the Personal Auto Policy (PAP) if
he was found at fault because of this accident.
D. Would be eligible for medical payments under the Personal Auto Policy (PAP)
because he wasn't caught speeding at the scene.
✔✔C. Any person occupying a covered auto. - ✔✔The medical payments coverage in
the Personal Auto Policy (PAP) applies to
A. Anyone occupying a car not owned by any insured but driven by an insured.
B. Anyone injured in an accident involving an insured.
C. Any person occupying a covered auto.
D. Any insured who is also covered by workers compensation for the same accident.
✔✔B. Denied because coverage under these circumstances is excluded. - ✔✔Larry
drove his car and was involved in a two-car accident caused by the other driver, who
was uninsured. The at-fault driver offered Larry a substantial amount of money in
satisfaction of his damages. Larry accepted the money in settlement of his losses and
released the other driver from further liability. Larry later submitted an uninsured
motorists claim under his Personal Auto Policy (PAP). The uninsured motorists claim
would be
A. Denied because the at-fault driver can be considered self-insured under the
circumstances.
, B. Denied because coverage under these circumstances is excluded.
C. Paid for damages accruing after the settlement with the at-fault driver.
D. Paid in addition to the money paid by the at-fault driver.
✔✔D. An other than collision loss. - ✔✔Under the Personal Auto Policy (PAP), a branch
falling from a tree and denting the hood of a covered auto is an example of
A. A collision loss.
B. An uninsured motorists loss.
C. A liability loss.
D. An other than collision loss.
✔✔A. $4,500 - ✔✔Tricia Barton has a personal auto policy providing collision coverage
(with a $500 deductible) and other than collision coverage (with a $250 deductible) on
her Chrysler sedan. Late one night, Tricia was responsible for an accident where she
ran into an SUV and caused damage to both vehicles. She submitted a claim to her
insurer for the $5,000 bill to repair her sedan. Assuming she had adequate limits and
her insurer agreed to pay the claim, what amount will her insurer pay under Part D—
Damage to Your Auto?
A. $4,500
B. $4,750
C. $5,000
D. $5,250
✔✔HO-3 Special Form - ✔✔Coverage for owner-occupants, providing open perils
coverage on buildings and specified perils coverage on personal property.
✔✔Open perils - ✔✔A type of policy or coverage that insures against direct physical
loss unless the loss is excluded or limited by the policy.
✔✔Named peril - ✔✔A specific cause of loss listed and described in an insurance
policy. Also used to describe policies containing named perils.
✔✔Peril - ✔✔The cause of a loss.
✔✔Liability - ✔✔A legal responsibility for the consequences of an act or omission.
✔✔C. Their cars - ✔✔Steve and Amy were about to purchase their first home. During
the process, they were advised that they needed to purchase a HO-3 insurance policy.
The HO-3 policy would provide Steve and Amy with coverage for all of the following,
EXCEPT:
A. The house
B. Personal Liability
C. Their cars
D. The contents of the house
AND ANSWERS RATED A+
✔✔B. Would be eligible for medical payments under the Personal Auto Policy (PAP) as
the named insured and an occupant of a covered auto. - ✔✔Miguel, an insured has a
Personal Auto Policy (PAP) that includes medical payments coverage. The insured
crashed his car while trying to be the first car to pull away from a stop at a red light
when the light turned green. In this scenario, Miguel
A. Would not be eligible for medical payments under the Personal Auto Policy (PAP)
because he is being reckless.
B. Would be eligible for medical payments under the Personal Auto Policy (PAP) as the
named insured and an occupant of a covered auto.
C. Would not be eligible for medical payments under the Personal Auto Policy (PAP) if
he was found at fault because of this accident.
D. Would be eligible for medical payments under the Personal Auto Policy (PAP)
because he wasn't caught speeding at the scene.
✔✔C. Any person occupying a covered auto. - ✔✔The medical payments coverage in
the Personal Auto Policy (PAP) applies to
A. Anyone occupying a car not owned by any insured but driven by an insured.
B. Anyone injured in an accident involving an insured.
C. Any person occupying a covered auto.
D. Any insured who is also covered by workers compensation for the same accident.
✔✔B. Denied because coverage under these circumstances is excluded. - ✔✔Larry
drove his car and was involved in a two-car accident caused by the other driver, who
was uninsured. The at-fault driver offered Larry a substantial amount of money in
satisfaction of his damages. Larry accepted the money in settlement of his losses and
released the other driver from further liability. Larry later submitted an uninsured
motorists claim under his Personal Auto Policy (PAP). The uninsured motorists claim
would be
A. Denied because the at-fault driver can be considered self-insured under the
circumstances.
, B. Denied because coverage under these circumstances is excluded.
C. Paid for damages accruing after the settlement with the at-fault driver.
D. Paid in addition to the money paid by the at-fault driver.
✔✔D. An other than collision loss. - ✔✔Under the Personal Auto Policy (PAP), a branch
falling from a tree and denting the hood of a covered auto is an example of
A. A collision loss.
B. An uninsured motorists loss.
C. A liability loss.
D. An other than collision loss.
✔✔A. $4,500 - ✔✔Tricia Barton has a personal auto policy providing collision coverage
(with a $500 deductible) and other than collision coverage (with a $250 deductible) on
her Chrysler sedan. Late one night, Tricia was responsible for an accident where she
ran into an SUV and caused damage to both vehicles. She submitted a claim to her
insurer for the $5,000 bill to repair her sedan. Assuming she had adequate limits and
her insurer agreed to pay the claim, what amount will her insurer pay under Part D—
Damage to Your Auto?
A. $4,500
B. $4,750
C. $5,000
D. $5,250
✔✔HO-3 Special Form - ✔✔Coverage for owner-occupants, providing open perils
coverage on buildings and specified perils coverage on personal property.
✔✔Open perils - ✔✔A type of policy or coverage that insures against direct physical
loss unless the loss is excluded or limited by the policy.
✔✔Named peril - ✔✔A specific cause of loss listed and described in an insurance
policy. Also used to describe policies containing named perils.
✔✔Peril - ✔✔The cause of a loss.
✔✔Liability - ✔✔A legal responsibility for the consequences of an act or omission.
✔✔C. Their cars - ✔✔Steve and Amy were about to purchase their first home. During
the process, they were advised that they needed to purchase a HO-3 insurance policy.
The HO-3 policy would provide Steve and Amy with coverage for all of the following,
EXCEPT:
A. The house
B. Personal Liability
C. Their cars
D. The contents of the house
