AINS 102 UPDATED PT 1 EXAM
QUESTIONS WITH CORRECT ANSWERS
2025/2026 ALREADY GRADED A+
Which one of the following is considered real property?
Select one:
A. An automobile
B. A house
C. Furniture
D. A motorhome - ANS- B
The Davis family suffered extensive fire damage to its home and was temporarily unable
to inhabit it. The family was forced to rent a hotel room while its home was under repair.
The cost incurred to rent the hotel room is referred to as which one of the following
outcomes of loss?
Select one:
A. Lost income
B. Increased expenses
C. Reduction in value of property
D. Special damages - ANS- B
Springton Grocery was a experiencing a frequency of liability claims from customers
slipping and falling near the store entrance on rainy days. The owners decided to
purchase nonslip mats for the areas near the store entrance and exit doors. The mats
significantly reduced the frequency of slip and fall claims. This is an example of which
one of the following risk management techniques?
Select one:
A. Loss prevention
B. Transfer
C. Avoidance
D. Loss reduction - ANS- A
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:
A. Damages to the vehicle
B. Mental distress compensation
C. Hospital and medical bills
D. Two months of lost wages - ANS- B
Under the tort liability system, injured accident victims must prove that
Select one:
A. Another party was at fault before they can collect damages.
B. They are unable to purchase insurance from another source before they can collect
damages.
C. The insurance limits they have purchased are equal to or greater than the state
minimum limits before they can collect damages.
D. They have met the financial responsibility laws of the state before they can collect
damages. - ANS- A
Which one of the following is used by the majority of states to compensate auto accident
victims?
Select one:
A. Personal injury protection coverage
B. Tort liability system
C. Uninsured motorist coverage
D. Unsatisfied judgment funds - ANS- B
Estelle and Richie are very conservative and want to purchase insurance to "cover
everything" in order to lessen the worries of home ownership. Which one of the following
ISO forms will provide them dwelling and personal property insurance with the broadest
possible coverage?
Select one:
A. HO-2 Broad Form
B. HO-3 Special Form
C. HO-5 Comprehensive Form
D. HO-8 Modified Form - ANS- C
Which one of the following is true regarding the use of technology in home risk
management?
Select one:
A. Smart devices in the home have reaffirmed the need for existing claims data to assess
risk.
B. Data gathered from sensors is used by insurers for personalized pricing and claims
handling.
C. Technology is more prevalent, abundant, and useful in homes than in automotive
environments.
QUESTIONS WITH CORRECT ANSWERS
2025/2026 ALREADY GRADED A+
Which one of the following is considered real property?
Select one:
A. An automobile
B. A house
C. Furniture
D. A motorhome - ANS- B
The Davis family suffered extensive fire damage to its home and was temporarily unable
to inhabit it. The family was forced to rent a hotel room while its home was under repair.
The cost incurred to rent the hotel room is referred to as which one of the following
outcomes of loss?
Select one:
A. Lost income
B. Increased expenses
C. Reduction in value of property
D. Special damages - ANS- B
Springton Grocery was a experiencing a frequency of liability claims from customers
slipping and falling near the store entrance on rainy days. The owners decided to
purchase nonslip mats for the areas near the store entrance and exit doors. The mats
significantly reduced the frequency of slip and fall claims. This is an example of which
one of the following risk management techniques?
Select one:
A. Loss prevention
B. Transfer
C. Avoidance
D. Loss reduction - ANS- A
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:
A. Damages to the vehicle
B. Mental distress compensation
C. Hospital and medical bills
D. Two months of lost wages - ANS- B
Under the tort liability system, injured accident victims must prove that
Select one:
A. Another party was at fault before they can collect damages.
B. They are unable to purchase insurance from another source before they can collect
damages.
C. The insurance limits they have purchased are equal to or greater than the state
minimum limits before they can collect damages.
D. They have met the financial responsibility laws of the state before they can collect
damages. - ANS- A
Which one of the following is used by the majority of states to compensate auto accident
victims?
Select one:
A. Personal injury protection coverage
B. Tort liability system
C. Uninsured motorist coverage
D. Unsatisfied judgment funds - ANS- B
Estelle and Richie are very conservative and want to purchase insurance to "cover
everything" in order to lessen the worries of home ownership. Which one of the following
ISO forms will provide them dwelling and personal property insurance with the broadest
possible coverage?
Select one:
A. HO-2 Broad Form
B. HO-3 Special Form
C. HO-5 Comprehensive Form
D. HO-8 Modified Form - ANS- C
Which one of the following is true regarding the use of technology in home risk
management?
Select one:
A. Smart devices in the home have reaffirmed the need for existing claims data to assess
risk.
B. Data gathered from sensors is used by insurers for personalized pricing and claims
handling.
C. Technology is more prevalent, abundant, and useful in homes than in automotive
environments.
