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 and bites a
neighbor's child who requires stitches. Joe argues that keeping the tiger violated no law 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?
absolute liability
A claim for money damages because of injury to another party or damage to another party's
property best describes
liability loss
which one of the following statements is true regarding no-fault automobile insurance
most no-fault laws apply only to bodily injury and not to property damage
Sally has an unendorsed HO-3 policy. Sally's swimming pool was drained by vandals who
opened a drain valve. The water was replaced at a cost of $2,500 to Sally, including labor to
deliver and pump the water. The HO-3 policy
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
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. Inland marine floaters provide the producer with the opportunity to address and
sell coverage for
property no adequately covered by the homeowners policy
Jack and Linda are meeting with their insurance agent to review their homeowners and auto
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?
to provide increased limits for large jury awards
, the HO-5 policy is designed to meet the risk management needs of
owner-occupants of dwellings who would like the broadest coverage available among ISO's
forms for their property
Coverage A - dwelling of an HO-3 policy applies to which one of the following
deck attached to the insured dwelling
which one of the following is considered real property
a brick storage shed
collision coverage under the PAP
applies to damage to a parked insured vehicle resulting from a passenger in another parked
vehicle opening its door
A retail chain sometimes requires its clerks to use their own cars to transfer special order
merchandise from one store to another. Tamika, one of its employees, was moving items
from one location to another in her station wagon which is insured with a Personal Auto
Policy (PAP). Tamika was injured in an auto accident along the way, and her medical bills can
be paid by her employer's workers compensation insurance. Her medical payments
coverage under her PAP
will pay nothing
defense costs coverage is included under Section II - Liability Coverages in the HO-3 policy.
This coverage
is supplemental to the liability limit
in which of the following ways do Fair Access to Insurance Requirements (FAIR) plans
provide needed support for credit
provide adequate property insurance coverage
small boat policies are designed to cover boats up to a certain size. most of these policies
are written on an actual cash value basis
Correct Answers/ Verified/ Latest Update (2024/2025)
Joe keeps a tiger cub as a pet in his fenced-in backyard. The tiger escapes and bites a
neighbor's child who requires stitches. Joe argues that keeping the tiger violated no law 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?
absolute liability
A claim for money damages because of injury to another party or damage to another party's
property best describes
liability loss
which one of the following statements is true regarding no-fault automobile insurance
most no-fault laws apply only to bodily injury and not to property damage
Sally has an unendorsed HO-3 policy. Sally's swimming pool was drained by vandals who
opened a drain valve. The water was replaced at a cost of $2,500 to Sally, including labor to
deliver and pump the water. The HO-3 policy
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
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. Inland marine floaters provide the producer with the opportunity to address and
sell coverage for
property no adequately covered by the homeowners policy
Jack and Linda are meeting with their insurance agent to review their homeowners and auto
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?
to provide increased limits for large jury awards
, the HO-5 policy is designed to meet the risk management needs of
owner-occupants of dwellings who would like the broadest coverage available among ISO's
forms for their property
Coverage A - dwelling of an HO-3 policy applies to which one of the following
deck attached to the insured dwelling
which one of the following is considered real property
a brick storage shed
collision coverage under the PAP
applies to damage to a parked insured vehicle resulting from a passenger in another parked
vehicle opening its door
A retail chain sometimes requires its clerks to use their own cars to transfer special order
merchandise from one store to another. Tamika, one of its employees, was moving items
from one location to another in her station wagon which is insured with a Personal Auto
Policy (PAP). Tamika was injured in an auto accident along the way, and her medical bills can
be paid by her employer's workers compensation insurance. Her medical payments
coverage under her PAP
will pay nothing
defense costs coverage is included under Section II - Liability Coverages in the HO-3 policy.
This coverage
is supplemental to the liability limit
in which of the following ways do Fair Access to Insurance Requirements (FAIR) plans
provide needed support for credit
provide adequate property insurance coverage
small boat policies are designed to cover boats up to a certain size. most of these policies
are written on an actual cash value basis
