AINS 102 Test Questions with Right Answers

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 - B. The detached garage Which one of the following is considered real property? Select one: A. An automobile B. A house C. Furniture D. A motorhome - B. A house All of the following could lead to a liability loss for a family, EXCEPT: 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. - A. The father trips on a broom he left lying in the driveway and breaks his arm. 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 - B. Special damages 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 - B. Tort liability system Which one of the following statements is true regarding automobile insurance 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. - C. State regulators require that rates be adequate, reasonable, and not unfairly discriminatory.