AINS 102 (Latest 2023/ 2024 Update) Understanding Personal Insurance Exam | Questions and Verified Answers| 100% Correct| Grade A

AINS 102 (Latest 2023/ 2024 Update)

Understanding Personal Insurance Exam |

Questions and Verified Answers| 100%

Correct| Grade A

Q: Courtney drove her car home after spending an afternoon celebrating with some friends at a

bar. She ran through a stop sign at a high speed and struck a van carrying a mother and two

children. The van was totaled and all of the family members in the van were injured and

hospitalized. The youngest child was severely injured and spent 3 months in the hospital and

rehabilitation. The family filled a lawsuit against Courtney. She was found liable for the hospital

and other medical expenses, as well as the damage to the van. Courtney was also charged with

$25,000 for her reckless and grossly negligent behavior. Which one of the following types of

damages does the $25,000 represent?

Select one:

A. Supplementary damages

B. Compensatory damages

C. Physical damages

D. Punitive damages

Answer:

D

Q: The medical payments coverage in the Personal Auto Policy (PAP) applies to

Select one:

A. Anyone occupying a car not owned by any insured but driven by an insured.

B. Any insured who is also covered by workers compensation for the same accident.

C. Anyone injured in an accident involving an insured.

D. Any person occupying a covered auto.

Answer:

D

Q: Miguel, an insured has a Personal Auto Policy (PAP) that includes medical payments

coverage. The insured crashed his car while trying to be the first car to pull away from a stop at a

red light when the light turned green. In this scenario, Miguel

Select one:

A. Would be eligible for medical payments under the Personal Auto Policy (PAP) because he

wasn't caught speeding at the scene.

B. Would be eligible for medical payments under the Personal Auto Policy (PAP) as the named

insured and an occupant of a covered auto.

C. Would not be eligible for medical payments under the Personal Auto Policy (PAP) if he was

found at fault because of this accident.

D. Would not be eligible for medical payments under the Personal Auto Policy (PAP) because he

is being reckless.

Answer:

B

Q: Under the uninsured motorists (UM) coverage in the Personal Auto Policy (PAP), the

insurer agrees to pay damages that the insured is legally entitled to recover from the owner or

operator of an uninsured motor vehicle. These damages are best identified as which one of the

following?

Select one:

A. Medical expenses

B. Compensatory damages

C. Rehabilitation expenses

D. Lost wages

Answer:

B

Q: Li has a Personal Auto Policy (PAP) for his car with a $100,000 limit for uninsured

motorists (UM) coverage. He was injured in an accident with a legally intoxicated uninsured

motorist. Li submitted a UM claim to his insurer. The case went to trial and Li was awarded

$50,000 for medical bills, $10,000 for rehabilitation expenses, $5,000 for lost wages, and

$10,000 for punitive damages. How much can Li collect under the UM coverage of his PAP?

Select one:

A. $50,000

B. $55,000

C. $65,000

D. $75,000

Answer:

C

Q: The Personal Auto Policy (PAP) provides physical damage coverage for a covered auto that

is damaged when the car's driver loses control and overturns the car on a sharp curve. This

coverage is called

Select one:

A. Falling object coverage.

B. Other than collision coverage.

C. Collision coverage.

D. Comprehensive coverage.

Answer:

C

Q: Under the Personal Auto Policy (PAP), a branch falling from a tree and denting the hood of

a covered auto is an example of

Select one:

A. A collision loss.

B. An other than collision loss.

C. A liability loss.

D. An uninsured motorists loss.

Answer:

B

Q: Personal auto policy endorsements can be categorized into two main categories. One of

these categories is

Select one:

A. Endorsements that provide coverage additions/modifications for customers who own vehicles

other than cars, vans, or pickup trucks.

B. Endorsements that provide coverage for owners of high-value antique cars that result in

higher premiums reflecting the valuable worth of such vehicles.

C. Endorsements that can be added to either a homeowners or personal auto policy the address

specific loss exposures not covered by an unendorsed PAP.

D. Endorsements that provide higher coverage limits for navigation systems permanently

installed in the vehicles and various media owned by the named insured.

Answer:

A

Q: David and Colleen insure their house under a HO-3 policy. One evening, while they were

entertaining some friends at their home, the railing of the deck collapsed and one of their guests

fell to the ground below. The individual suffered a serious leg injury which required surgery and

two days in the hospital. Which one of the following coverages under David and Colleen's HO-3

policy would cover the expenses for the injured individual?

Select one:

A. Coverage A—Dwelling

B. Coverage B—Other Structures

C. Coverage D—Loss of Use

D. Coverage E—Personal Liability

Answer:

D

Q: The Millers insure their dwelling under an HO-3 policy. They recently purchased a shed for

their back yard where they will store tools, bicycles, and other sporting equipment. Which one of

the following property coverages under Section I of the HO-3 policy would apply to the shed?

Select one:

A. Coverage A—Dwelling

B. Coverage B—Other Structures

C. Coverage C—Personal Property

D. Additional Coverage

Answer:

B

Q: Josh has just built a large kennel in his backyard for his pet dogs. The kennel includes a

heated shed and access to a large fenced area. Josh wants to make sure he has adequate insurance

limits under his homeowners policy so that he can replace the kennel if it is damaged. Which one