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AINS 102 Exam-Questions with Correct Answers/ Verified/ Latest Update (2024/2025)
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AINS 102 Exam-Questions with Correct Answers/ Verified/ Latest Update (2024/2025)
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AINS 102 Exam-Questions with Correct Answers/ Verified/ LatestUpdate (2024/2025)
Patrick's car is 12 years-old and has been driven for over 100,000 miles. He has decided that
instead of continuing to pay insurance premium for coverage for property damage to his
car, he will put the money aside to save for a new car. Which one of the following risk
management techniques is Patrick using?
A) Loss reduction
B) Avoidance
C) Retention
D) Diversification - ✔✔C
Heather and Jeff had the roof blown off their home during a recent storm. Which one of the
following best expresses the financial outcome they are currently experiencing?
A) Lost income
B) Reduction in property value
C) Increased expenses
D) No change in their financial outcome - ✔✔B
Sophie was involved in an auto accident with another vehicle. The driver of the other vehicle
was seriously injured. The individual spent 10 days in the hospital, missed 2 months of work,
and continues to experience mental distress. The other vehicle was also damaged, with
repair costs of $5,000. It was determined that Sophie was liable for the damages because
she ran a red light and caused the accident. Which one of the following damages would be
considered general damages?
A) Damages to the vehicle
B) Hospital and medical bills
C) Two months of lost wages
D) Mental distress compensation - ✔✔D
,SF Poultry learned that a number of individuals had become ill and hospitalized after eating
chicken from one of its processing plants. The company did not advise the public or its
distributors of the problem, and made no effort to recall the spoiled product. Over 50
individuals ended-up becoming ill from the spoiled chicken. SF Poultry was found liable in
court. In addition to having to pay the medical and hospital bills for the injured individuals,
damages were levied against SF Poultry to punish the company for its reckless and deceitful
actions. These damages that were levied against SF Poultry are known as
A) Punitive damages.
B) Special damages.
C) General damages.
D) Necessary damages. - ✔✔A
Which one of the following is considered a high-risk driver?
A) Stacey was involved in a deadly car accident.
B) Mark was caught and convicted of driving under the influence of alcohol
C) Martin can only qualify for the most expensive auto insurance
D) Cyndy cannot obtain insurance from a private insurer - ✔✔B
Coverage that pays benefits, regardless of fault, for medical expense, income loss, and other
benefits, resulting from bodily injury to occupants of a covered auto is
A) Compulsory auto insurance law coverage
B) Residual market coverage
C) Personal injury protection coverage
D) Financial responsibility law coverage - ✔✔C
All of the following are true of the HO-3 Special Form, EXCEPT:
A) The HO-3 is designed for owners who occupy their dwelling or choose to rent it.
, B) The HO-3 can be modified for special needs through available endorsements.
C) The HO-3 is typically used as a basis for understanding other HO coverage forms.
D) The HO-3 meets the property and liability coverage needs of most families. - ✔✔A
Which one of the following is true regarding the use of technology in home risk
management?
A) Smart devices in the home have reaffirmed the need for existing claims data to assess
risk.
B) Data gathered from sensors is used by insurers for personalized pricing and claims
handling.
C) Sensors are generally regarded as useful in loss prevention, but not in loss reduction.
D) Technology is more prevalent, abundant, and useful in homes than in automotive
environments. - ✔✔B
Luke recently purchased a Personal Auto Policy (PAP). During the application process he
advised the agent that he owned two private passenger vehicles and a snow mobile. The
agent assured Luke that the proposal included coverage for the snowmobile. Luke has
received his PAP policy and wants to confirm that it shows coverage for the snowmobile.
Which one of the following sections of the PAP will indicate the coverage for the
snowmobile?
A) The snowmobile endorsement will be listed under the Policy Form and Endorsements
section of the Declarations page.
B) The snowmobile coverage will be detailed in Part F—General Provisions.
C) The snowmobile will be shown in the Insured Vehicles and Schedule of Coverages section
of the Declarations page.
D) The snowmobile will be included in the description of "your covered auto" in the
Definitions section. - ✔✔A
Vivian is an auto claims adjuster. She wanted to make sure that the vehicle identification
number (VIN) of the damaged vehicle matched the VIN shown on the Personal Auto Policy
(PAP), the VIN can be found
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