AINS 102 Exam Questions with Correct Answers
The insuring agreement of a homeowners policy specifies that
Select one:
A. Endorsements are available to modify the contract.
B. Defined words have special meanings when they are used within the policy.
C. Five property coverages are provided by t...
AINS 102 Exam Questions
with Correct Answers
The insuring agreement of a homeowners policy specifies that
Select one:
A. Endorsements are available to modify the contract.
B. Defined words have special meanings when they are used within the policy.
C. Five property coverages are provided by the policy.
D. The insurer will provide policy coverage in return for the premium and compliance
with policy provisions. - Answer ✔ D
The HO-3 policy provides open perils coverage rather than named perils coverage for
which one of the following?
Select one:
A. Coverage A—Dwelling only
B. Coverage A—Dwelling and Coverage B—Other Structures
C. Coverage C—Personal Property
D. Coverage D—Loss of Use - Answer ✔ B
Which one of the following statements is correct regarding coverage under Section I,
Coverage D—Loss of Use of an HO-3 policy.
Select one:
A. Coverage is limited to 30 days or the time required to repair or replace the residence
premises, whichever is shorter.
B. A claim may be filed when the residence premises are unlivable because of a
covered cause of loss and there has been an increase in living expenses.
C. Coverage is provided only when civil authority prohibits use of the premises.
D. Additional Living Expenses and Fair Rental Value have separate coverage limits. -
Answer ✔ B
Tomas has an HO-3 policy covering his home. A neighbor jumped Tomas's fence to use
his yard as a shortcut to a store, tripped over a small shovel left on the lawn, and was
injured. The neighbor sued Tomas. Tomas's insurer defended and won the lawsuit on
the theory that the neighbor was a trespasser to whom no duty was owed by Tomas.
The insurer's defense included $20,000 in legal fees. Who is responsible for these fees?
Select one:
A. Tomas is, because liability coverage is not triggered absent a finding of liability.
B. The insurer is responsible for the legal fees only if Tomas is not able to pay them.
C. Tomas and the insurer share responsibility for the legal fees.
D. Tomas's HO-3 insurer is responsible for the legal fees. - Answer ✔ D
, Under Section II—Liability Coverage of a homeowners policy all of the following are the
insured's duties after an occurrence, EXCEPT:
Select one:
A. Make voluntary payments to the claimant
B. Submit a sworn statement of loss for damage to property of others if making a claim
under that coverage
C. Forward legal documents to the insurer
D. Provide claims assistance to the insurer - Answer ✔ A
Coverage F—Medical Payments to Others in the homeowners policy applies to bodily
injury to a residence employee in all of the following situations, EXCEPT:
Select one:
A. The residence employee is on the insured location but is not working
B. The residence employee is away from the insured location but is working
C. The residence employee is away from the insured location and is not working
D. The residence employee is on the insured location and is working - Answer ✔ C
The medical payments coverage in a homeowners policy covers certain medical
expenses incurred by
Select one:
A. Insureds.
B. A person uninvited to the insured's home.
C. Nonresidents of the insured's household.
D. Regular household residents other than residence employees. - Answer ✔ C
Sota owns and lives in a house insured under an unendorsed Dwelling Property 3—
Special Form (DP-3) with a Coverage A—Dwelling limit of $200,000. Burglars caused
$2,500 in damage to Sota's front door while breaking in, and stole $12,000 worth of
personal property. Sota made a claim for $14,500. How much of this loss, if any, will be
covered by Sota's DP-3 policy?
Select one:
A. Nothing
B. $2,500, less any applicable deductible
C. $12,000, less any applicable deductible
D. $14,500, less any applicable deductible - Answer ✔ B
The Jordans own a small ranch, and keep several ponies on the property for their
personal use. Mr. and Mrs. Jordan are concerned that their children's friends and
visiting relatives could be injured when riding the family's ponies. What coverage would
the unendorsed DP-3 policy provide for this loss exposure?
Select one:
A. No coverage
B. Full coverage, up to the policy limits
C. Medical expenses only, up to $2,000
D. 20% of the Coverage A limit - Answer ✔ A
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