AINS 102 UPDATED ACTUAL Questions and CORRECT Answers
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Course
AINS 102
Institution
AINS 102
AINS 102 UPDATED ACTUAL Questions
and CORRECT Answers
individuals and families property loss exposures stem from ownership of 2 main categories of
property - CORRECT ANSWER- real property (realty) and personal property
real property - CORRECT ANSWER- land, buildings, other structures attached...
AINS 102 UPDATED ACTUAL Questions
and CORRECT Answers
individuals and families property loss exposures stem from ownership of 2 main categories of
property - CORRECT ANSWER✔✔- real property (realty) and personal property
real property - CORRECT ANSWER✔✔- land, buildings, other structures attached to the
land, and anything embedded in the land
personal property - CORRECT ANSWER✔✔- dwelling contents (furniture), high-value
property, rare or unique property, business personal property, intangible property, motor
vehicles, trailers, watercraft, and aircraft
damaged or destroyed property can result in... - CORRECT ANSWER✔✔- Reduction in
property value—The difference between the value of the property before the loss (pre-loss
value) and after the loss (post-loss value)
Increased expenses—Expenses in addition to normal living expenses that are necessary
because of the loss, such as the cost of renting a hotel room following a house fire
Lost income—Loss of income that results when property is damaged or destroyed, such as
the loss of rent that can be collected on a property that is damaged by a hurricane
all risk management techniques fall into two categories - CORRECT ANSWER✔✔- risk
control techniques and risk financing techniques
risk control techniquies - CORRECT ANSWER✔✔- reduce the frequency and severity of a
loss or make losses more predictable
risk financing techniques - CORRECT ANSWER✔✔- generate the funds to pay for losses
and risk control measures
risk control technique 6 categories - CORRECT ANSWER✔✔- avoidance: stopping or not
engaging in an activity (not purchase boat)
loss prevention: reduces frequency of a particular loss (put a fence around the building)
loss reduction: reduces the severity of a loss (install burglar alarm)
,separation: isolate to minimize effects of a single loss (keep some valuable items at home,
others off site in a safe)
duplication: creating backups, spares, or copies of property or information (make copies)
diversification: spreads loss exposures over numerous areas or projects (purchase properties
in different areas)
risk financing techniques 2 categories - CORRECT ANSWER✔✔- retention: funds are
generated or set aside for losses that are retained by the individual or family (budget for
replacement)
transfer: shifting the financial responsibility for losses onto another party (purchase an
insurance policy that transfers the risk to an insurer)
financial consequences are limited to... - CORRECT ANSWER✔✔- the total wealth of the
responsible party
2 forms of damages awarded in a liability lawsuit - CORRECT ANSWER✔✔- special
damages
general damages
special damages - CORRECT ANSWER✔✔- also called particular damages or out of pocket
losses
can include amount spent to restore lost property, hospital and doctor bills and related
expenses for bodily injury, and loss of wages and earnings
general damages - CORRECT ANSWER✔✔- also called direct damages or necessary
damages
often presumed when special damages are proven
can include compensation for pain and suffering; future effect of disfigurement, loss of a
limb, sight, or hearing; as well as emotional distress
punitive or exemplary damages - CORRECT ANSWER✔✔- can also be imposed, but its
more common for them to be levied against companies
these damages are meant to punish a defendant for reckless, malicious, or deceitful acts and
need not bear any relation to a party's actual damages
, civil law - CORRECT ANSWER✔✔- classification of law that protects rights and provides
remedies for breaches of duties owed to others
separate from criminal law, which deals with conduct that endangers the public welfare, such
as the crimes of murder, rape, and fraud
provides the legal foundation of insurance
tort - CORRECT ANSWER✔✔- wrongful act or omission other than a crime or breach of
contract that invades a legally protected right
tort of negligence - CORRECT ANSWER✔✔- when someone fails to act in a sensible
manner
intentional tort - CORRECT ANSWER✔✔- deliberate act of causing harm to someone
compulsory auto insurance laws - CORRECT ANSWER✔✔- to insure that at fault victims
have a way to compensate other victims
law that requires the owners or operators of automobiles to carry automobile liability
insurance at least equal to certain minimum limits before the vehicle can be licensed or
registered
financial responsibility laws - CORRECT ANSWER✔✔- require motorists to provide proof
that they have some means to pay for any property damage or bodily injury they might cause
as a result or owning an auto
differences in the way auto insurance functions based on... - CORRECT ANSWER✔✔-
where its purchased
if you are a high risk driver
how its regulated
what technology insurers have adopted
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