AINS 102 REVIEWED EXAM
QUESTIONS AND THEIR CORRECT
SOLUTIONS
Inland marine floaters are flexible and can be used to
cover both common and unusual exposures. Inland
marine floaters provide the producer with the
opportunity to address and sell coverage for:
B. Property not adequately covered by the home owners
policy.
Jack and Linda are meeting with their insurance agent
to review their homeowners and auto policies. The
agent has suggested that they add an umbrella policy.
Which one of the following is the best reason the
agent will likely provide for purchasing this coverage?
A. To provide increased limits for large jury awards
The HO-5 policy is designed to meet the risk
management needs of
A. Owner-occupants of dwellings who would like the
broadest coverage available among ISO's forms for their
property.
Coverage A—Dwelling of an HO-3 policy applies to
which one of the following?
A. Deck attached to the insured dwelling
Which one of the following is considered real
property?
B. A brick storage shed
, Joe keeps a tiger cub as a pet in his fenced-in
backyard. The tiger escapes and bites a neighbor's
child who requires stitches. Joe argues that keeping
the tiger violated no law and that he took every
precaution to restrain the tiger. Even if Joe is correct,
he might face a claim for damages based upon which
one of the following?
A. Absolute liability
A claim for money damages because of injury to
another party or damage to another party's property
best describes
C. A liability loss.
Which one of the following statements is true
regarding no-fault automobile insurance?
B. Most no-fault laws apply only to bodily injury and not to
property damage.
Sally has an unendorsed HO-3 policy. Sally's
swimming pool was drained by vandals who opened a
drain valve. The water was replaced at a cost of $2,500
to Sally, including labor to deliver and pump the water.
The HO-3 policy
A. Does not cover the cost of the replaced water.
If a claim is paid under Coverage F—Medical
Payments to Others of a homeowners policy, a policy
condition makes it clear that
C. The payment is not an admission of liability by the
insured or the insurer.
Collision coverage under the Personal Auto Policy
(PAP)
QUESTIONS AND THEIR CORRECT
SOLUTIONS
Inland marine floaters are flexible and can be used to
cover both common and unusual exposures. Inland
marine floaters provide the producer with the
opportunity to address and sell coverage for:
B. Property not adequately covered by the home owners
policy.
Jack and Linda are meeting with their insurance agent
to review their homeowners and auto policies. The
agent has suggested that they add an umbrella policy.
Which one of the following is the best reason the
agent will likely provide for purchasing this coverage?
A. To provide increased limits for large jury awards
The HO-5 policy is designed to meet the risk
management needs of
A. Owner-occupants of dwellings who would like the
broadest coverage available among ISO's forms for their
property.
Coverage A—Dwelling of an HO-3 policy applies to
which one of the following?
A. Deck attached to the insured dwelling
Which one of the following is considered real
property?
B. A brick storage shed
, Joe keeps a tiger cub as a pet in his fenced-in
backyard. The tiger escapes and bites a neighbor's
child who requires stitches. Joe argues that keeping
the tiger violated no law and that he took every
precaution to restrain the tiger. Even if Joe is correct,
he might face a claim for damages based upon which
one of the following?
A. Absolute liability
A claim for money damages because of injury to
another party or damage to another party's property
best describes
C. A liability loss.
Which one of the following statements is true
regarding no-fault automobile insurance?
B. Most no-fault laws apply only to bodily injury and not to
property damage.
Sally has an unendorsed HO-3 policy. Sally's
swimming pool was drained by vandals who opened a
drain valve. The water was replaced at a cost of $2,500
to Sally, including labor to deliver and pump the water.
The HO-3 policy
A. Does not cover the cost of the replaced water.
If a claim is paid under Coverage F—Medical
Payments to Others of a homeowners policy, a policy
condition makes it clear that
C. The payment is not an admission of liability by the
insured or the insurer.
Collision coverage under the Personal Auto Policy
(PAP)
