AINS 102 EXAM QUESTIONS WITH
COMPLETE SOLUTIONS LATEST
2025/2026 ALREADY GRADED A+
General Forms for personal property - ANS- three general forms that are commonly used
to provide coverage on a single form for different types of personal property:
Personal Articles Standard Loss Settlement Form - provides special form coverage for
several classes of personal property. there's a specific amount for each class of article
Exclusions: wear and tear, deterioration, inherent vice, insects or vermin
Personal Property Form - provides special form coverage on unscheduled personal
property under used by the insured and normally kept at the insured residence. the same
form provides worldwide coverage when the same property is temporarily away from the
premises. this form can be used to ensure 13 classes of unscheduled personal property
with a separate amount for each class. can be used to insure the property in his
self-storage unit
Personal Effects form - is designed for frequent travelers. provides coverage on personal
property such as luggage, clothes and cameras. it covers worldwide, but only when it is
away from the insured's residence, not in storage.
Damaged or destroyed property can result in these outcomes - ANS- 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*
real property (realty)* - ANS- Land, buildings, other structures attached to the land
(swimming pool, storage shed, flagpole), anything growing on the land (trees, crops), and
anything embedded in the land (foundations, underground pipes, minerals)
personal property - ANS- Dwelling contents (furniture, electronics), high-value property
(jewelry, silverware, firearms), rare or unique property (antiques, artwork), business
,personal property (supplies, machinery), intangible property (patents, copyrights), motor
vehicles, trailers, watercraft, and aircraft
Risk control techniques - ANS- Avoidance
Loss Prevention
Loss reduction
Separation
Duplication
Diversification
risk financing techniques - ANS- retention and transfer
What are two risk management techniques? - ANS- Risk control - reduce the frequency
or severity of a particular loss, make the loss more predictable*
Risk Financing- generate the funds to pay for losses or risk control measures
Avoidance - ANS- ceasing an activity or deciding not to engage in it so that the
possiblity of future loss is eliminated
Loss prevention - ANS- reduces the frequency of a particular loss. to break the sequence
of events that lead to a loss
Loss Reduction - ANS- reduces the severity of a particular loss.
Separation - ANS- isolates loss of exposure from one another to minimize the adverse
affect of a similar loss
Duplication - ANS- creating backups, spares, or copies of property or information
Diversification - ANS- Spreads loss exposures over numerous areas or projects
retention - ANS- Funds are generated or set aside to pay for losses that are retained by
the individual or family
Transfer - ANS- shifting the financial responsibility for losses on to another party, like an
insurer
When a liability claim occurs, an individual or a family can suffer two major financial
consequences.* - ANS- 1. having to pay money damages if the legal defense isn't
successful or if the claim is settled out of court.*
2. having to pay the costs of a legal investigation and defense (even if the defense is
successful).*
Damages in a liability suit - ANS- Often in the form of special and/or general damages
, Special damages - ANS- Particular damages or out-of-pocket losses; can include the
amount spent to restore lost property, hospital, and doctor bills and related expenses for
bodily injury, and loss of wages and earnings
General damages (compensatory) - ANS- direct damages or necessary damages; often
presumed when special damages are proven; can include compensation for non-financial
losses i.e. pain, suffering, future effect of disfigurement, loss of limb, sight or hearing, as
well as emotional distress
Punitive Damages - ANS- Money damages that may be awarded to a plaintiff to punish
the defendant and deter future similar conduct i.e. reckless, malicious, or deceitful acts.
Often imposed on companies.
Civil Law - ANS- the system of law concerned with private relations between members of
a community rather than criminal, military, or religious affairs. Often liability cases fall
under civil law
Compulsory auto insurance law - ANS- 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 law - ANS- Law that requires drivers to prove that they can pay
for damage or injury caused by an automobile accident
at-fault states - ANS- They use the tort liability system to determine who is responsible
for the financial consequences of an auto accident. Under this system, auto accident
victims must prove that another party was at fault before they can collect damages from
that party. Applies in most states
tort law - ANS- involves wrongful act or omission, other than crime or breach of contract,
that violates someone's legally protected right
victim must prove that other party was at fault before they can collect. 3 sources of tort
liab:
- negligence - failure to excercise due care
- intentional torts - intentional acts, written/printed, oral (untrue statement), battery
(unlawful physical contact, trespassing, nuisance (violating a person's right to enjoy)
- Strict liab/absolute liab - situation where victim doesn't need to prove defendant acted
negligently, i.e., defendant is automatically liab if something happens b/c of how
inherently dangerous the act is; ex: co that demolishes bldg is liab if someone gets inj'd,
regardless of whether co acted negligently; ex: having inherently dangerous animal
no-fault states - ANS- an injured person does not need to establish fault and prove
negligence to collect payment for bodily injuries. Automobile insurance covers accident
COMPLETE SOLUTIONS LATEST
2025/2026 ALREADY GRADED A+
General Forms for personal property - ANS- three general forms that are commonly used
to provide coverage on a single form for different types of personal property:
Personal Articles Standard Loss Settlement Form - provides special form coverage for
several classes of personal property. there's a specific amount for each class of article
Exclusions: wear and tear, deterioration, inherent vice, insects or vermin
Personal Property Form - provides special form coverage on unscheduled personal
property under used by the insured and normally kept at the insured residence. the same
form provides worldwide coverage when the same property is temporarily away from the
premises. this form can be used to ensure 13 classes of unscheduled personal property
with a separate amount for each class. can be used to insure the property in his
self-storage unit
Personal Effects form - is designed for frequent travelers. provides coverage on personal
property such as luggage, clothes and cameras. it covers worldwide, but only when it is
away from the insured's residence, not in storage.
Damaged or destroyed property can result in these outcomes - ANS- 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*
real property (realty)* - ANS- Land, buildings, other structures attached to the land
(swimming pool, storage shed, flagpole), anything growing on the land (trees, crops), and
anything embedded in the land (foundations, underground pipes, minerals)
personal property - ANS- Dwelling contents (furniture, electronics), high-value property
(jewelry, silverware, firearms), rare or unique property (antiques, artwork), business
,personal property (supplies, machinery), intangible property (patents, copyrights), motor
vehicles, trailers, watercraft, and aircraft
Risk control techniques - ANS- Avoidance
Loss Prevention
Loss reduction
Separation
Duplication
Diversification
risk financing techniques - ANS- retention and transfer
What are two risk management techniques? - ANS- Risk control - reduce the frequency
or severity of a particular loss, make the loss more predictable*
Risk Financing- generate the funds to pay for losses or risk control measures
Avoidance - ANS- ceasing an activity or deciding not to engage in it so that the
possiblity of future loss is eliminated
Loss prevention - ANS- reduces the frequency of a particular loss. to break the sequence
of events that lead to a loss
Loss Reduction - ANS- reduces the severity of a particular loss.
Separation - ANS- isolates loss of exposure from one another to minimize the adverse
affect of a similar loss
Duplication - ANS- creating backups, spares, or copies of property or information
Diversification - ANS- Spreads loss exposures over numerous areas or projects
retention - ANS- Funds are generated or set aside to pay for losses that are retained by
the individual or family
Transfer - ANS- shifting the financial responsibility for losses on to another party, like an
insurer
When a liability claim occurs, an individual or a family can suffer two major financial
consequences.* - ANS- 1. having to pay money damages if the legal defense isn't
successful or if the claim is settled out of court.*
2. having to pay the costs of a legal investigation and defense (even if the defense is
successful).*
Damages in a liability suit - ANS- Often in the form of special and/or general damages
, Special damages - ANS- Particular damages or out-of-pocket losses; can include the
amount spent to restore lost property, hospital, and doctor bills and related expenses for
bodily injury, and loss of wages and earnings
General damages (compensatory) - ANS- direct damages or necessary damages; often
presumed when special damages are proven; can include compensation for non-financial
losses i.e. pain, suffering, future effect of disfigurement, loss of limb, sight or hearing, as
well as emotional distress
Punitive Damages - ANS- Money damages that may be awarded to a plaintiff to punish
the defendant and deter future similar conduct i.e. reckless, malicious, or deceitful acts.
Often imposed on companies.
Civil Law - ANS- the system of law concerned with private relations between members of
a community rather than criminal, military, or religious affairs. Often liability cases fall
under civil law
Compulsory auto insurance law - ANS- 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 law - ANS- Law that requires drivers to prove that they can pay
for damage or injury caused by an automobile accident
at-fault states - ANS- They use the tort liability system to determine who is responsible
for the financial consequences of an auto accident. Under this system, auto accident
victims must prove that another party was at fault before they can collect damages from
that party. Applies in most states
tort law - ANS- involves wrongful act or omission, other than crime or breach of contract,
that violates someone's legally protected right
victim must prove that other party was at fault before they can collect. 3 sources of tort
liab:
- negligence - failure to excercise due care
- intentional torts - intentional acts, written/printed, oral (untrue statement), battery
(unlawful physical contact, trespassing, nuisance (violating a person's right to enjoy)
- Strict liab/absolute liab - situation where victim doesn't need to prove defendant acted
negligently, i.e., defendant is automatically liab if something happens b/c of how
inherently dangerous the act is; ex: co that demolishes bldg is liab if someone gets inj'd,
regardless of whether co acted negligently; ex: having inherently dangerous animal
no-fault states - ANS- an injured person does not need to establish fault and prove
negligence to collect payment for bodily injuries. Automobile insurance covers accident
