AINS 102: Understanding Personal Insurance – Study Set
Exam Questions and Correct Answers – A+ Guaranteed
1. Arbitration:An alternativedisputeresolution(ADR) methodby whichdisputingpartiesusea neutraloutside
party to examine the issues and develop a settlement, which can be final and binding.
2. Attachment:The act of seizing propertyto securea judgment.
3. Catastrophe:A single eventthatcauseswidespreadlosses.
4. Civil law: A classification of law that applies to legal matters not governed by criminal law and that protects
rights and provides remedies for breaches of duties owed to others.
5. Compensatorydamages:A paymentawardedby a court to reimbursea victim for actualharm.
6. Compulsory auto insurance law:Law that requiresthe ownersor operatorsof automobilesto carry
automobileliability insuranceat leastequalto certainminimumlimits beforethevehiclecan belicensedor registered.
7. Criminal law: The branchof the law that imposespenaltiesfor wrongs against society.
8. Cross-selling: Selling new types of insuranceproductsto existing clients.
9. Damages:Moneyclaimedby,or a monetaryawardto,a partywhohassutteredlossor injuryfor whichanother
party is legally responsible.
10. Deductible:A portionof a coveredloss that is not paid by the insurer.
11. Financial responsibilitylaws: Law enactedto ensurethat motoristshavethe financial ability to pay
for any property damage or bodily injury they might cause as a result of driving or owning an auto.
12. First party: The insuredin an insurancecontract.
13. Floater: A policy designedto cover propertythat floats, or moves,from locationto location.
14. Flood Insurance Rate Map (FIRM): A map that shows exact boundaries for special flood hazard
areas, the various flood zones, and base flood elevations.
15. General damages:A monetaryaward to compensatea victim for losses,such as pain and suttering,that
do not involve specific, measurable expenses.
16. HO-3 Special Form: Coverage for owner-occupants, providing open perils coverage on buildings and
specifiedperils coverageon personalproperty.
17. Hull insurance: Insurancethat coversphysical damageto vessels,including their machineryand fuel but
nottheir cargo.
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, 18. Inland marine floater:Coveragefor propertylimitedor excludedby homeownerspolicies,property
with valuation problems, high-value items, and property susceptible to loss by other than the usual named perils.
19. Inland marine insurance:Insurancethatcoversmanyditterentclassesof propertythattypically
involve an element of transportation on land.
20. Intentionaltort: A tort committedby a personwho foresees(or shouldbe ableto foresee)that his or her
act will harm anotherperson.
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Exam Questions and Correct Answers – A+ Guaranteed
1. Arbitration:An alternativedisputeresolution(ADR) methodby whichdisputingpartiesusea neutraloutside
party to examine the issues and develop a settlement, which can be final and binding.
2. Attachment:The act of seizing propertyto securea judgment.
3. Catastrophe:A single eventthatcauseswidespreadlosses.
4. Civil law: A classification of law that applies to legal matters not governed by criminal law and that protects
rights and provides remedies for breaches of duties owed to others.
5. Compensatorydamages:A paymentawardedby a court to reimbursea victim for actualharm.
6. Compulsory auto insurance law:Law that requiresthe ownersor operatorsof automobilesto carry
automobileliability insuranceat leastequalto certainminimumlimits beforethevehiclecan belicensedor registered.
7. Criminal law: The branchof the law that imposespenaltiesfor wrongs against society.
8. Cross-selling: Selling new types of insuranceproductsto existing clients.
9. Damages:Moneyclaimedby,or a monetaryawardto,a partywhohassutteredlossor injuryfor whichanother
party is legally responsible.
10. Deductible:A portionof a coveredloss that is not paid by the insurer.
11. Financial responsibilitylaws: Law enactedto ensurethat motoristshavethe financial ability to pay
for any property damage or bodily injury they might cause as a result of driving or owning an auto.
12. First party: The insuredin an insurancecontract.
13. Floater: A policy designedto cover propertythat floats, or moves,from locationto location.
14. Flood Insurance Rate Map (FIRM): A map that shows exact boundaries for special flood hazard
areas, the various flood zones, and base flood elevations.
15. General damages:A monetaryaward to compensatea victim for losses,such as pain and suttering,that
do not involve specific, measurable expenses.
16. HO-3 Special Form: Coverage for owner-occupants, providing open perils coverage on buildings and
specifiedperils coverageon personalproperty.
17. Hull insurance: Insurancethat coversphysical damageto vessels,including their machineryand fuel but
nottheir cargo.
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, 18. Inland marine floater:Coveragefor propertylimitedor excludedby homeownerspolicies,property
with valuation problems, high-value items, and property susceptible to loss by other than the usual named perils.
19. Inland marine insurance:Insurancethatcoversmanyditterentclassesof propertythattypically
involve an element of transportation on land.
20. Intentionaltort: A tort committedby a personwho foresees(or shouldbe ableto foresee)that his or her
act will harm anotherperson.
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