AINS 102 Certification Exam Test Questions and
100% Correct Answers A+ Graded
1. Property loss exposure: A condition that presents the possibility that a person or an organization will
sustain a loss resulting from damage (including destruction,taḱing, or loss of use) to property in which that personor
organization has a financial interest.
2. Real property (realty): Tangible propertyconsistingof land, all structurespermanentlyattachedto the
land, and whateveris growing on the land.
3. Personal property: All tangible or intangiblepropertythat is not real property.
4. Deductible:A portionof a coveredloss that is not paid by the insurer.
5. Liability loss exposure:Any condition or situation that presents the possibility of a claim alleging legal
responsibility of a person or business for injury or damage suttered by another party.
6. Damages:Moneyclaimedby, or a monetaryawardto, a party who has sutteredloss or injury for which another
party is legally responsible.
7. Special damages:A form of compensatorydamagesthatawardsa sum of moneyfor specific,identifiable
expenses associated with the injured person's loss, such as medical expenses or lost wages.
8. Generaldamages:A monetaryaward to compensatea victim for losses,such as pain and suttering,that do
not involve specific, measurable expenses.
9. Punitive damages:A paymentawardedby a court to punish a defendantfor a recḱless, malicious,or
deceitful act to deter similar conduct; the award need not bear any relation to a party's actual damages.
10. Civil law: A classificationof law that appliesto legal mattersnot governedby criminal law and that protects
rights and provides remedies for breaches of duties owed to others.
11. Criminal law: The branchof the law that imposespenaltiesfor wrongs againstsociety.
12. Tort: A wrongfulact or an omission,otherthana crimeor a breachof contract,that invadesa legallyprotected
right.
13. Negligence:The failure to exercise the degree of care that a reasonable person in a similar situation would
exercise to avoid harming others.
14. Intentionaltort: A tort committedby a personwhoforesees(or shouldbeableto foresee)thathis or her act
will harm another person.
,15. Strict liability: Liability imposedby a courtor by a statutein theabsenceof fault whenharm results
from activities or conditionsthat are extremely dangerous,unnatural, ultrahazardous,extraordinary,abnormal, or
inappropriate.
16. Compulsory auto insurance law: Law that requiresthe ownersor operatorsof automobilesto
carry automobileliability insurance at least equal to certain minimum limits beforethe vehicle can be licensed or
registered.
,17. Financial responsibility laws: Law enactedto ensure that motorists have the financial ability to pay
for any propertydamageor bodily injury they might causeas a result of driving or owning an auto.
18. Personal injury protection (PIP) coverage: Coverage thatpays benefits,regardlessof fault, for
medical expense,income loss, and other benefits,resulting from bodily injury to occupantsof a coveredauto.
19. Residualmarḱet: The termreferringcollectivelyto insurersand otherorganizationsthatmaḱe insurance
availablethrougha sharedrisḱ mechanismto thosewho cannotobtaincoveragein the admittedmarḱet.
20. Internet of Things (IoT): A networḱ of objectsthat transmit data to eachotherand to centralhubs
throughtheinternet.
21. First party: The insuredin an insurancecontract.
22. Open perils coverage:A type of policy or coverage that insures againstḱsrisof direct physical loss
except for those specifically excluded or limited by the policy.
23. Named perils coverage: An insurance policy in which the covered causes of loss are listed or "named" in
thepolicy.
24. D. Undergroundpipes: All of the following items are examplesof personalproperty,EXCEPT:
A. Sports equipment
B. Silverware
C. A fishing boat
D. Undergroundpipes
25. C. The detachedgarage: John is a recent homeowner and is considering the insurance coveragesneeds he
for his home and contents.If damagedby a peril coveredby a homeownerspolicy, which one of the following would be
considered part of John's real property?
A. The desḱ top computer
B. The boat in the driveway
C. The detachedgarage
D. The hocḱey net and equipment
26. C. Intentional tort:Paul was chargedwith assaultand batteryafterhe punchedand injuredhis neighbor
Tom, who repeatedlywalḱed his dog on Paul's property.Which one of the following types of tort does this represent?
A. Strict liability
B. Negligence
, C. Intentional tort
D. Exemplary tort
100% Correct Answers A+ Graded
1. Property loss exposure: A condition that presents the possibility that a person or an organization will
sustain a loss resulting from damage (including destruction,taḱing, or loss of use) to property in which that personor
organization has a financial interest.
2. Real property (realty): Tangible propertyconsistingof land, all structurespermanentlyattachedto the
land, and whateveris growing on the land.
3. Personal property: All tangible or intangiblepropertythat is not real property.
4. Deductible:A portionof a coveredloss that is not paid by the insurer.
5. Liability loss exposure:Any condition or situation that presents the possibility of a claim alleging legal
responsibility of a person or business for injury or damage suttered by another party.
6. Damages:Moneyclaimedby, or a monetaryawardto, a party who has sutteredloss or injury for which another
party is legally responsible.
7. Special damages:A form of compensatorydamagesthatawardsa sum of moneyfor specific,identifiable
expenses associated with the injured person's loss, such as medical expenses or lost wages.
8. Generaldamages:A monetaryaward to compensatea victim for losses,such as pain and suttering,that do
not involve specific, measurable expenses.
9. Punitive damages:A paymentawardedby a court to punish a defendantfor a recḱless, malicious,or
deceitful act to deter similar conduct; the award need not bear any relation to a party's actual damages.
10. Civil law: A classificationof law that appliesto legal mattersnot governedby criminal law and that protects
rights and provides remedies for breaches of duties owed to others.
11. Criminal law: The branchof the law that imposespenaltiesfor wrongs againstsociety.
12. Tort: A wrongfulact or an omission,otherthana crimeor a breachof contract,that invadesa legallyprotected
right.
13. Negligence:The failure to exercise the degree of care that a reasonable person in a similar situation would
exercise to avoid harming others.
14. Intentionaltort: A tort committedby a personwhoforesees(or shouldbeableto foresee)thathis or her act
will harm another person.
,15. Strict liability: Liability imposedby a courtor by a statutein theabsenceof fault whenharm results
from activities or conditionsthat are extremely dangerous,unnatural, ultrahazardous,extraordinary,abnormal, or
inappropriate.
16. Compulsory auto insurance law: Law that requiresthe ownersor operatorsof automobilesto
carry automobileliability insurance at least equal to certain minimum limits beforethe vehicle can be licensed or
registered.
,17. Financial responsibility laws: Law enactedto ensure that motorists have the financial ability to pay
for any propertydamageor bodily injury they might causeas a result of driving or owning an auto.
18. Personal injury protection (PIP) coverage: Coverage thatpays benefits,regardlessof fault, for
medical expense,income loss, and other benefits,resulting from bodily injury to occupantsof a coveredauto.
19. Residualmarḱet: The termreferringcollectivelyto insurersand otherorganizationsthatmaḱe insurance
availablethrougha sharedrisḱ mechanismto thosewho cannotobtaincoveragein the admittedmarḱet.
20. Internet of Things (IoT): A networḱ of objectsthat transmit data to eachotherand to centralhubs
throughtheinternet.
21. First party: The insuredin an insurancecontract.
22. Open perils coverage:A type of policy or coverage that insures againstḱsrisof direct physical loss
except for those specifically excluded or limited by the policy.
23. Named perils coverage: An insurance policy in which the covered causes of loss are listed or "named" in
thepolicy.
24. D. Undergroundpipes: All of the following items are examplesof personalproperty,EXCEPT:
A. Sports equipment
B. Silverware
C. A fishing boat
D. Undergroundpipes
25. C. The detachedgarage: John is a recent homeowner and is considering the insurance coveragesneeds he
for his home and contents.If damagedby a peril coveredby a homeownerspolicy, which one of the following would be
considered part of John's real property?
A. The desḱ top computer
B. The boat in the driveway
C. The detachedgarage
D. The hocḱey net and equipment
26. C. Intentional tort:Paul was chargedwith assaultand batteryafterhe punchedand injuredhis neighbor
Tom, who repeatedlywalḱed his dog on Paul's property.Which one of the following types of tort does this represent?
A. Strict liability
B. Negligence
, C. Intentional tort
D. Exemplary tort
