AINS 102 ACTUAL EXAM QUESTIONS WITH

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AINS 102 ACTUAL EXAM QUESTIONS WITH

CORRECT DETAILED ANSWERS LATEST UPDATE

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All of the following items are examples of personal property, EXCEPT:

Select one:

• Sports equipment
• Silverware
• A fishing boat
• Underground pipes - CORRECT ANSWER✔✔Underground pipes

Which one of the following statements regarding assets exposed to loss is true?

Select one:

• Real property includes only tangible property.Correct. All real property is tangible property

having a physical form that can be seen or touched. Personal property can include intangible property such as patents or copyrights.

• Earthquake damage to a swimming pool is an example of a personal property loss exposure.
• Personal property includes only tangible property.
• Hail damage to a motor vehicle is an example of a real property loss exposure. - CORRECT

ANSWER✔✔A. Real property includes only tangible property. 1 / 4

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Sophie was involved in an auto accident with another vehicle. The driver of the other vehicle was seriously injured. The individual spent 10 days in the hospital, missed 2 months of work, and continues to experience mental distress. The other vehicle was also damaged, with repair costs of $5,000. It was determined that Sophie was liable for the damages because she ran a red light and caused the accident. Which one of the following damages would be considered general damages?

Select one:

• Damages to the vehicle
• Hospital and medical bills
• Two months of lost wages
• Mental distress compensation - CORRECT ANSWER✔✔D. Mental distress compensation

SF Poultry learned that a number of individuals had become ill and hospitalized after eating chicken from one of its processing plants. The company did not advise the public or its distributors of the problem, and made no effort to recall the spoiled product. Over 50 individuals ended-up becoming ill from the spoiled chicken. SF Poultry was found liable in court.In addition to having to pay the medical and hospital bills for the injured individuals, damages were levied against SF Poultry to punish the company for its reckless and deceitful actions.These damages that were levied against SF Poultry are known as

Select one:

• General damages.
• Punitive damages. 2 / 4

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• Special damages.
• Necessary damages. - CORRECT ANSWER✔✔B. Punitive damages.

Which one of the following statements is true regarding automobile insurance rating?

Select one:

• 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.
• 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.

nsurers and other organizations that make insurance available to those who are unable to obtain coverage from the standard market are collectively called

Select one:

• A reinsurance facility.
• The residual market.
• The secondary market.
• An automobile insurance plan. - CORRECT ANSWER✔✔B. The residual market. 3 / 4

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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:

• HO-2 Broad Form
• HO-3 Special Form
• HO-5 Comprehensive Form
• HO-8 Modified Form - CORRECT ANSWER✔✔C. HO-5 Comprehensive Form

Rick and Jamie have chosen their first home and now are asking their insurance agent Franklin to help advise them as to appropriate and affordable insurance coverage. Which one of the following will most accurately reflect the best coverage choice for Rick and Jamie?

Select one:

• As Rick and Jamie are buying and remodeling an older home, Franklin suggests an HO-8

modified coverage form to provide appropriate coverage for a building with a comparatively high replacement cost.

• As Rick and Jamie will be buying a mansion, Franklin suggests an HO-5 comprehensive form

as it provides the highest dollar amounts of any coverage available.

• As Rick and Jamie will be renting an apartment for a few years, Franklin suggests an HO-2

broad form as they will not need any dwelling coverage.

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