AINS 102 EXAM A, B, C AND STUDY GUIDE COMPLETE

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AINS 102 EXAM A, B, C AND STUDY GUIDE COMPLETE

500+ QUESTIONS AND CORRECT DETAILED ANSWERS -

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AINS 102 EXAM 1

QUESTION: 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)

Select one:

• Choice no-fault
• PIP benefit
• Add-on plan
• Modified no-fault plan - ANSWER-C. Add-on plan

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?

• No change in their financial outcome
• Lost income
• Increased expenses 1 / 3

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• Reduction in property value - ANSWER-D. Reduction in property value

QUESTION: All of the following are considered personal property, EXCEPT:

• Revolver
• Patent
• Cherry tree
• Antique piano - ANSWER-C. Cherry tree

QUESTION: 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?

Select one:

• Damages to the vehicle
• Two months of lost wages
• Mental distress compensation
• Hospital and medical bills - ANSWER-A. Mental distress compensation 2 / 3

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3 QUESTION: 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?

Select one:

• Diversification
• Avoidance
• Loss reduction
• Retention - ANSWER-D. Retention

QUESTION: All of the following could lead to a liability loss for a family, EXCEPT:

Select one:

• The daughter, who is 16 years old, sideswipes a neighbor's car and dents its fender while

driving her own car.

• The father trips on a broom he left lying in the driveway and breaks his arm.
• A guest slips on an icy sidewalk in front of the family's home and breaks his leg.
• The son, who is 13 years old, throws a rock at a classmate who requires stitches for an injury

to his head. - ANSWER-B. The father trips on a broom he left lying in the driveway and breaks his arm.

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