AINS 102 QUESTIONS WITH

• | Page

AINS 102 QUESTIONS WITH

CORRECT ANSWER S

Question 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?

• The boat in the driveway
• The detached garage
• The desk top computer
• The hockey net and equipment

CORRECT ANSWER : B. The detached garage

Question 2: Which one of the following is considered real

property?

• An automobile
• A house
• Furniture
• A motorhome

CORRECT ANSWER: B. A house

• | Page

Question 3: All of the following could lead to a liability

loss for a family, EXCEPT:

• The father trips on a broom he left lying in the

driveway and breaks his arm.

• The son, who is 13 years old, throws a rock at a

classmate who requires stitches for an injury to his head.

• A guest slips on an icy sidewalk in front of the family's

home and breaks his leg.

• The daughter, who is 16 years old, sideswipes a

neighbor's car and dents its fender while driving her own car.

CORRECT ANSWER: A. The father trips on a broom

he left lying in the driveway and breaks his arm.

Question 4: Which one of the following is a form of

compensatory damages?

• Real damages
• Special damages
• Punitive damages

• | Page

• Exemplary damages

CORRECT ANSWER : B. Special damages

Question 5: Which one of the following is used by the

majority of states to compensate auto accident victims?

• Personal injury protection coverage
• Tort liability system
• Uninsured motorist coverage
• Unsatisfied judgment funds

CORRECT ANSWER : B. Tort liability system

Question 6: Which one of the following statements is true

regarding automobile insurance rating?

• State regulators require that all insurers offer discounts

on auto rates for passive restraints.

• Most insurers base automobile rates on primary rating

factors and do not consider any other factors in establishing rates.

• State regulators require that rates be adequate,

reasonable, and not unfairly discriminatory.

• | Page

• Drivers with lower-than-average loss exposure are

charged higher rates.

CORRECT ANSWER : C. State regulators require that

rates be adequate, reasonable, and not unfairly discriminatory.

Question 7: All of the following are true of the HO-3

Special Form, EXCEPT:

• The HO-3 is designed for owners who occupy their

dwelling or choose to rent it.

• The HO-3 meets the property and liability coverage

needs of most families.

• The HO-3 is typically used as a basis for understanding

other HO coverage forms.

• The HO-3 can be modified for special needs through

available endorsements.

CORRECT ANSWER : A. The HO-3 is designed for

owners who occupy their dwelling or choose to rent it.

Question 8: Estelle and Richie are very conservative and

want to purchase insurance to "cover everything" in order