AINS 103 Test Questions And Answers.
Workers compensation benefits include which one of the following?
When a clothing manufacturer decides to expand the sale of its clothing line by offering internet purchases, it creates new exposures not otherwise covered, or not fully covered, by a traditiona...
1). Workers compensation benefits include which one of the following?
Ans: Rehabilitation benefits
2). When a clothing manufacturer decides to expand the sale of its clothing line by offering
internet purchases, it creates new exposures not otherwise covered, or not fully covered,
by a traditional policy. these include
Ans: Loss or damage caused by computer viruses.
3). Which one of the following supply chain exposures can a business mitigate by carefully
wording contracts and diversifying suppliers?
Ans: Loss of supply due to external events
4). The commercial property coverage part of a commercial package policy contains one or
more commercial property coverage forms. each coverage form typically includes all of
the following, except:
Ans: A range of covered peril
5). Which one of the following statements best describes the causes of loss—special form?
Ans: The Special Form provides coverage for direct physical losses other than those
that are specifically excluded.
6). Which one of the following best describes real property?
Ans: Tangible property that includes land, structures permanently attached to the
land, and whatever is growing on the land.
PaperStoc.com Page 1 of 22
, 7). During a business interruption, some of the organization's expenses, called continuing
expenses, will continue, and other expenses, called noncontinuing expenses, will not
continue. which one of the following is an example of a continuing expense?
Ans: Payroll of key employees
8). A vehicle owner had a tire store install four new wheels and tires on the vehicle. on the way
home from the store, one of the wheels came off, causing the vehicle to accidentally run
off the road and strike a tree. the vehicle owner sued the tire store for failing to properly
tighten the lug nuts on the vehicle. the loss exposure faced by the tire store in this case is
known as
Ans: Completed operations liability.
9). Which one of the following entities would likely have the greatest completed operations
loss exposure?
Ans: Paul the plumber
10). A carrier that is prevented by an accident from delivering the cargo aboard its ship may
face an exposure called loss of freight, which is
Ans: The compensation the carrier receives for transporting cargo.
11). Which one of the following statements is correct with respect to the building and personal
property coverage form (bpp) deductible?
Ans: If an occurrence involves a loss that affects more than one category of covered
property and a separate limit of insurance applies to each category, losses to all
categories are totaled and the deductible applied to that total amount.
12). Which one of the following statements is correct with respect to the building and personal
property coverage form (bpp)?
Ans: Due to coverage extensions, it is possible for the total payment for one loss to
exceed the policy limit.
13). Which one of the following would be considered an extra expense under the business
income (and extra expense) coverage form of the commercial package policy?
Ans: The increased cost of rent at a temporary location
PaperStoc.com Page 2 of 22
, 14). Dooley's restaurant is insured under a commercial package policy (cpp) with the business
income (with extra expense) coverage form. the business suffered a $400,000 loss of
business income when it was forced to suspend operations after flood waters damaged
the basement and first floor of the restaurant. which one of the following is an acceptable
reason for the cpp insurer to deny the business income claim?
Ans: The policy's covered causes of loss did not include flood.
15). Lucy's bakery is insured under a commercial package policy with the business income
(and extra expense) coverage form. a fire loss caused significant damage to the building.
when lucy learned that it would take 9 months to repair the building, she decided to
temporarily relocate to a nearby rental location. all of the following would be considered
covered extra expenses under the business income (and extra expense) coverage form,
except:
Ans: The salary of the assistant baker and cake decorator
16). Richard's clothing store has a $500,000 business income (and extra expense) coverage
form on which there is an 80 percent coinsurance clause. a fire swept through the store.
richard's clothing store estimates that its net income plus all operating expenses for the
policy period would have been $1,875,000. the estimated business income loss is
$300,000. how much will the insurer pay?
Ans: $100,000
17). Suzanne is a commercial lines underwriter. which one of the following components of the
general liability coverage forms would she use to tailor the form to meet the specialized
needs of an insured?
Ans: Endorsements
18). Under coverage a of the commercial general liability coverage form (cgl), property damage
would include all of the following, except:
Ans: Infringement of copyright
19). Leslie suffered a severe burn to her hand when her microwave oven manufactured by lh
appliances caught fire. the fire also caused damage to her kitchen cabinets. two years
later, leslie decided to file a suit against the manufacturer when she learned that
microwaves manufactured by lh appliances had been found responsible for several other
fires. lh appliances was insured by an occurrence version of the commercial general
liability (cgl) coverage form with no deductible or endorsements. which one of the
following correctly describes how lh appliances' cgl will apply to the claim?
PaperStoc.com Page 3 of 22
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Academik001. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $14.49. You're not tied to anything after your purchase.
