AINS 102 Understanding Personal Insurance Exam-Questions with
Correct Answers/ Verified/ Latest Update (2024/2025)
Joe keeps a tiger cub as a pet in his fenced in backyard. The tiger escapes invites a
neighborhood child who require stitches. Joe argues that keeping the tiger violated Noah,
and that he took every precaution to restrain the tiger. Even if Joe is correct, he might face a
claim for damages, based upon which one of the following.?
A.) absolute liability.
B.) negligence
C.) statutory liability
D.) trespass - ✔✔A.) Absolute liability - which does not require that negligence be proven
A claim for money damages because of injury to another party or damage to another parties
property best describes:
A.) a tort
B.) errors and omission
C.) a liability loss
D.) a property loss exposure - ✔✔C.) a liability loss
Which one of the following statements is true regarding no fault automobile insurance?
A.) under no fault system an injured person does not need to establish fault but must prove
negligence in order to collect payment for damages
B.) most no fault laws apply only to bodily injury and NOT property damage
C.) no fault laws typically provide no benefit for loss of earnings for an injured person
D.) an injured party must sue to obtain medical expenses above a particular monetary
threshold in all no fault plans - ✔✔B.) most no fault laws apply only to bodily injury and it to
property damage
Sally has an unendorsed H03 policy Sally's swimming pool was trained by vandals who
opened a drain valve. The water was replaced at a cost of $2500 to Sally, including labor to
deliver and pump the water, the HO-3 policy.
A.) covers the labor cost of replacing the water but not the cost of the water
B.) covers the cost of the water up to a $1000 sublimit
, C.) cover the full cost of the replaced water
D.) does not cover the cost of the replaced water - ✔✔D.) does not cover the cost of the
replaced water
If a claim is paid under Coverage F medical payments to others of a homeowners policy a
policy condition makes it clear that
A.) the insurer no longer has a right to defend the insured against coverage E claim
B.) the insurer is required to pay damages even if the insured was not connected to the
injury
C.) the payment settles the loss and the insurer has no additional legal obligations to the
insured
D.) the payment is not an admission of liability by the insured or the insurer - ✔✔D.) the
payment is not an admission of liability by the insured or the insurer
Inland marine floaters are flexible and can be used to cover both common and unusual
exposures. In lane marine floaters provide the producer with the opportunity to address and
sell coverage for
Select one
A.) increased building values on the homeowners policy
B.) low-valued personal property
C.) increased liability limits on the homeowners policy
D.) property not adequately covered by the homeowners policy - ✔✔D.) property not
adequately covered by the homeowners policy
Jack and Linda are meeting with their insurance agent to review their homeowner and auto
insurance policies the agent has suggested that they add an umbrella policy. Which one of
the following is the best reason the agent will likely provide for purchasing this coverage?
A.) to provide increased limits for large jury awards
B.) to offset the deductible on their other policies
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