AINS 102 REVIEWED EXAM
STUDYGUIDE
Property loss exposure
A condition that presents the possibility that a person or an
organization will sustain a loss resulting from damage
(including destruction, taking, or loss of use) to property in
which that person or organization has a financial interest.
Real property (realty)
Tangible property consisting of land, all structures
permanently attached to the land, and whatever is growing
on the land.
Personal property
All tangible or intangible property that is not real property.
Deductible
A portion of a covered loss that is not paid by the insurer.
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 suffered by another party.
Damages
Money claimed by, or a monetary award to, a party who
has suffered loss or injury for which another party is legally
responsible.
Special damages
A form of compensatory damages that awards a sum of
money for specific, identifiable expenses associated with
the injured person's loss, such as medical expenses or
lost wages.
,General damages
A monetary award to compensate a victim for losses, such
as pain and suffering, that do not involve specific,
measurable expenses.
Punitive damages
A payment awarded by a court to punish a defendant for a
reckless, malicious, or deceitful act to deter similar
conduct; the award need not bear any relation to a party's
actual damages.
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.
Criminal law
The branch of the law that imposes penalties for wrongs
against society.
Tort
A wrongful act or an omission, other than a crime or a
breach of contract, that invades a legally protected right.
Negligence
The failure to exercise the degree of care that a
reasonable person in a similar situation would exercise to
avoid harming others.
Intentional tort
A tort committed by a person who foresees (or should be
able to foresee) that his or her act will harm another
person.
Strict liability
Liability imposed by a court or by a statute in the absence
of fault when harm results from activities or conditions that
,are extremely dangerous, unnatural, ultrahazardous,
extraordinary, abnormal, or inappropriate.
Compulsory auto insurance law
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 laws
Law enacted to ensure that motorists have the financial
ability to pay for any property damage or bodily injury they
might cause as a result of driving or owning an auto.
Personal injury protection (PIP) coverage
Coverage that pays benefits, regardless of fault, for
medical expense, income loss, and other benefits,
resulting from bodily injury to occupants of a covered auto.
Residual market
The term referring collectively to insurers and other
organizations that make insurance available through a
shared risk mechanism to those who cannot obtain
coverage in the admitted market.
Internet of Things (IoT)
A network of objects that transmit data to each other and
to central hubs through the internet.
First party
The insured in an insurance contract.
Open perils coverage
A type of policy or coverage that insures against risks of
direct physical loss except for those specifically excluded
or limited by the policy.
Named perils coverage
, An insurance policy in which the covered causes of loss
are listed or "named" in the policy.
D. Underground pipes
All of the following items are examples of personal
property, EXCEPT:
A. Sports equipment
B. Silverware
C. A fishing boat
D. Underground pipes
C. The detached garage
John is a recent homeowner and is considering the
insurance coverages he needs for his home and contents.
If damaged by a peril covered by a homeowners policy,
which one of the following would be considered part of
John's real property?
A. The desk top computer
B. The boat in the driveway
C. The detached garage
D. The hockey net and equipment
C. Intentional tort
Paul was charged with assault and battery after he
punched and injured his neighbor Tom, who repeatedly
walked 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
D. Mental distress compensation
Sophie was involved in an auto accident with another
vehicle. The driver of the other vehicle was seriously
STUDYGUIDE
Property loss exposure
A condition that presents the possibility that a person or an
organization will sustain a loss resulting from damage
(including destruction, taking, or loss of use) to property in
which that person or organization has a financial interest.
Real property (realty)
Tangible property consisting of land, all structures
permanently attached to the land, and whatever is growing
on the land.
Personal property
All tangible or intangible property that is not real property.
Deductible
A portion of a covered loss that is not paid by the insurer.
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 suffered by another party.
Damages
Money claimed by, or a monetary award to, a party who
has suffered loss or injury for which another party is legally
responsible.
Special damages
A form of compensatory damages that awards a sum of
money for specific, identifiable expenses associated with
the injured person's loss, such as medical expenses or
lost wages.
,General damages
A monetary award to compensate a victim for losses, such
as pain and suffering, that do not involve specific,
measurable expenses.
Punitive damages
A payment awarded by a court to punish a defendant for a
reckless, malicious, or deceitful act to deter similar
conduct; the award need not bear any relation to a party's
actual damages.
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.
Criminal law
The branch of the law that imposes penalties for wrongs
against society.
Tort
A wrongful act or an omission, other than a crime or a
breach of contract, that invades a legally protected right.
Negligence
The failure to exercise the degree of care that a
reasonable person in a similar situation would exercise to
avoid harming others.
Intentional tort
A tort committed by a person who foresees (or should be
able to foresee) that his or her act will harm another
person.
Strict liability
Liability imposed by a court or by a statute in the absence
of fault when harm results from activities or conditions that
,are extremely dangerous, unnatural, ultrahazardous,
extraordinary, abnormal, or inappropriate.
Compulsory auto insurance law
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 laws
Law enacted to ensure that motorists have the financial
ability to pay for any property damage or bodily injury they
might cause as a result of driving or owning an auto.
Personal injury protection (PIP) coverage
Coverage that pays benefits, regardless of fault, for
medical expense, income loss, and other benefits,
resulting from bodily injury to occupants of a covered auto.
Residual market
The term referring collectively to insurers and other
organizations that make insurance available through a
shared risk mechanism to those who cannot obtain
coverage in the admitted market.
Internet of Things (IoT)
A network of objects that transmit data to each other and
to central hubs through the internet.
First party
The insured in an insurance contract.
Open perils coverage
A type of policy or coverage that insures against risks of
direct physical loss except for those specifically excluded
or limited by the policy.
Named perils coverage
, An insurance policy in which the covered causes of loss
are listed or "named" in the policy.
D. Underground pipes
All of the following items are examples of personal
property, EXCEPT:
A. Sports equipment
B. Silverware
C. A fishing boat
D. Underground pipes
C. The detached garage
John is a recent homeowner and is considering the
insurance coverages he needs for his home and contents.
If damaged by a peril covered by a homeowners policy,
which one of the following would be considered part of
John's real property?
A. The desk top computer
B. The boat in the driveway
C. The detached garage
D. The hockey net and equipment
C. Intentional tort
Paul was charged with assault and battery after he
punched and injured his neighbor Tom, who repeatedly
walked 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
D. Mental distress compensation
Sophie was involved in an auto accident with another
vehicle. The driver of the other vehicle was seriously
