Exam (elaborations)
AINS 102 Exam/113 Questions and Answers
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- AINS 102 Exam/113 Questions And Answers
AINS 102 Exam/113 Questions and Answers
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AINS 102 Exam/113 Questions andAnswers
Real property (realty) - -Tangible property consisting of land, all structures
permanently attached to the land, and whatever is growing on the land.
-Personal Property - -possessions such as jewelry, furniture, and boats
-Damage to building by vandalism - Put a fence around the building - -Loss
Prevention
-Home burglary - Install burglar alarm - -Loss reduction
-Tort Damages - -compensatory damages and punitive damages
-Negligence Tort - -careless neglect, often resulting in injury
Example: Driving while intoxicated and causing an accident
-Intentional Tort - -A deliberate act that causes harm to another person
Example: assault
-Strict Liability - -Inherently dangerous activities or dangerously defective
products that result in injury or harm
Example: Owning a wild animal
-At-Fault States or Tort State - -a driver who causes a car crash is
responsible for compensating the other party or parties for their losses
-No-Fault States - -the driver's personal injury protection (PIP) coverage
pays out after a car accident for lost wages and medical expenses,
regardless of fault
-Modified no-fault plans - -These allow injured motorists to collect economic
losses from their plan's PIP benefits. They may then have the ability to sue
at-fault drivers for any economic losses that exceed the no-fault coverage
limits and for some noneconomic losses.
-Add-on plans - -These add no-fault benefits to auto insurance policies but
place no restrictions on the injured person's right to sue a negligent party for
damages.
, -Choice no-fault plans - -Under these plans, insureds can choose whether to
be covered on a modified no-fault basis. In most states with these plans,
insureds who choose not to be covered on a modified no-fault basis must
purchase add-on coverages.
-Who or what regulates auto insurance rates?
Federal regulators
State regulators
President of the United States
Private insurers' auditors - -State regulators - States regulate auto insurance
rates. While states' rating laws can vary, they generally require insurers to
use rates that are adequate to pay all claims and expenses, reasonable (not
excessive) for the exposure presented, and not unfairly discriminatory.
-Open perils coverage - -a form of commercial property insurance that
provides protection against nearly every type of loss except those
specifically excluded in the policy. Open perils property insurance is different
from named perils insurance, which only provides coverage for losses
specifically listed in the policy.
-Named perils coverage - -insures against causes of loss that are
specifically listed in the policy.
-HO-2 Broad Form - -Provides named perils coverage for dwellings and
personal property and liability coverage.
-HO-3 Special Form - -Provides open perils coverage for dwellings, named
perils coverage for personal property, and liability coverage.
-HO-4 Contents Broad Form - -Often called renters insurance, it's designed
for tenants and other occupants of dwellings or apartments. It provides no
dwelling coverage, but it covers personal property on a named perils basis
and provides liability coverage.
-HO-5 Comprehensive Form - -Provides the broadest coverage of all HO
forms. It covers dwellings and personal property on an open perils basis, and
it provides liability coverage.
-HO-6 Unit-Owners Form - -Designed for owners of residential condominium
units and provides limited dwelling coverage. Named perils personal
property coverage is provided, as is liability coverage.
-HO-8 Modified Coverage Form - -Designed for older buildings with a high
replacement cost compared to market value. Dwellings and personal
, property coverage is provided on a more limited named perils basis. Liability
coverage is also provided.
-Endorsements - -Many endorsements are available to modify HO policies to
further enable them to meet the specific needs of individuals and families.
Endorsements can increase or decrease limits, add or remove coverages,
change definitions, clarify policy intent, or recognize specific characteristics
that require a premium increase or decrease.
-Which one of the following statements regarding assets exposed to loss is
true?
A. Real property includes only tangible property.
B. Earthquake damage to a swimming pool is an example of a personal
property loss exposure.
C. Personal property includes only tangible property.
D. Hail damage to a motor vehicle is an example of a real property loss
exposure. - -A. Real property includes only tangible property.
-All of the following could lead to a liability loss for a family, EXCEPT:
A. The son, who is 13 years old, throws a rock at a classmate who requires
stitches for an injury to his head.
B. A guest slips on an icy sidewalk in front of the family's home and breaks
his leg.
C. The daughter, who is 16 years old, sideswipes a neighbor's car and dents
its fender while driving her own car.
D. The father trips on a broom he left lying in the driveway and breaks his
arm. - -D. The father trips on a broom he left lying in the driveway and
breaks his arm.
-Leslie is insured with a personal auto policy (PIP) with Baines Insurance. She
lives in a state that has a type of no-fault plan in which she, if injured by an
auto accident that was the fault of another person, would be compensated
with no-fault benefits but she would not be restricted in her right to sue that
negligent person for damages. This type of no-fault plan is most specifically
a(n)
A. Add-on plan
B. Choice no-fault
C. Modified no-fault plan
D. PIP benefit - -A. Add-on plan
-Your Covered Auto - -- any vehicle shown in the declarations
- a newly acquired auto
- a trailer owned by the named insured
- a temporary substitute vehicle
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