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AINS 102 (Latest 2024 / 2025 Update)Questions and Verified Answers | 100% Correct
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AINS 102 (Latest Update)Questions andVerified Answers | 100% Correct
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
- ans -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.
- ans -C. State regulators require that rates be adequate, reasonable, and not
unfairly discriminatory.
Which one of the following causes of loss is covered under the other than collision
(OTC) section of the Personal Auto Policy (PAP)?
Select one:
A. Hitting another car
B. Overturn from the driver losing control
C. Falling objects
D. Hitting a tree
- ans -C. Falling objects
The Personal Auto Policy (PAP) provides physical damage coverage for a covered
auto that is damaged when the car's driver loses control and overturns the car on
a sharp curve. This coverage is called
,Select one:
A. Comprehensive coverage.
B. Other than collision coverage.
C. Falling object coverage.
D. Collision coverage.
- ans -D. Collision coverage.
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?
Select one:
A. $4,500
B. $4,750
C. $5,000
D. $5,250 - ans -A. $4,500
Richard insures his house under a HO-3 policy. During a recent windstorm, a tree
fell on the attached garage causing structural damage. Which one of the following
Section I coverages of Richard's homeowners policy would cover the damage to
the attached garage?
Select one:
A. Coverage A—Dwelling
B. Coverage B—Other Structures
C. Coverage C—Personal Property
D. Coverage D—Loss of Use
- ans -A. Coverage A—Dwelling
David and Colleen insure their house under a HO-3 policy. One evening, while
they were entertaining some friends at their home, the railing of the deck
collapsed and one of their guests fell to the ground below. The individual suffered
a serious leg injury which required surgery and two days in the hospital. Which
one of the following coverages under David and Colleen's HO-3 policy would
cover the expenses for the injured individual?
,Select one:
A. Coverage A—Dwelling
B. Coverage B—Other Structures
C. Coverage D—Loss of Use
D. Coverage E—Personal Liability
- ans -D. Coverage E—Personal Liability
All of the following are true of the HO-3 Special Form, EXCEPT:
Select one:
A. The HO-3 is designed for owners who occupy their dwelling or choose to rent
it.
B. The HO-3 meets the property and liability coverage needs of most families.
C. The HO-3 is typically used as a basis for understanding other HO coverage
forms.
D. The HO-3 can be modified for special needs through available endorsements. -
ans -A. The HO-3 is designed for owners who occupy their dwelling or choose to
rent it.
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:
A. HO-2 Broad Form
B. HO-3 Special Form
C. HO-5 Comprehensive Form
D. HO-8 Modified Form
- ans -C. HO-5 Comprehensive Form
The Agreement and Definitions page of the Personal Auto Policy (PAP) includes
Select one:
A. The name of the insurer issuing the policy.
B. A general agreement stating the insurer's duty to pay damages and defense
costs subject to the terms of the policy.
C. A general agreement stating that the insurer is providing the coverage subject
to payment of premium and to the terms of the policy.
D. The name and mailing address of the insured.
, - ans -C. A general agreement stating that the insurer is providing the coverage
subject to payment of premium and to the terms of the policy.
In the Personal Auto Policy (PAP) definitions, "Your covered auto" includes all of
the following classes of vehicles, EXCEPT:
Select one:
A. A trailer owned by the insured
B. A temporary substitute auto or trailer
C. A newly acquired auto
D. A trailer rented by the insured
- ans -D. A trailer rented by the insured
Brendan and Sue were on a road trip along the coast of California, using Sue's car.
One day they were stuck in terrible traffic while Brendan was driving. He became
angry when another car merged in front of him. A few minutes later, Brendan
deliberately rammed into the car that had cut in front of him, causing property
damage to the other car. Both Brendan and Sure were surprised to learn that
Sue's Personal Auto Policy (PAP) would not cover the claim. Which one of the
following is the correct reason why Sue's PAP will not pay the claim for property
damage to the other car?
Select one:
A. Because the Part A insuring agreement excludes intentional harm.
B. Because Sue's PAP only covers property damage to her car.
C. Because Brendan, not Sue, was driving the car.
D. Because Brendan's PAP should cover the claim.
- ans -A. Because the Part A insuring agreement excludes intentional harm.
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
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