Exam (elaborations)
AINS 103-SIMULATED EXAM
- Course
- Institution
AINS 103-SIMULATED EXAM
[Show more]
Content preview
AINS 103: SIMULATED EXAMWhile performing duties for the business, all of the following would be an insured under
Business Liability Coverage of a partnership's businessowners policy (BOP), EXCEPT: -
Answers -All executive officers of an LLC.
Which one of the following would be covered under the Extra Expense insuring
agreement of the Business Income (and Extra Expense) Coverage Form? - Answers -
Costs to move office equipment to a substitute location.
An intangible asset resulting from a collection of perceptions and opinions, past and
present, about an organization that resides in the consciousness of its stakeholders is
known as an organization's: - Answers -Reputation.
Ivan is a commercial insurance producer looking to expand his book of business. He is
researching local businesses trying to determine which businesses might be eligible for
the businessowners policy (BOP) and which would not be eligible. Which one of the
following businesses would be ineligible for BOP coverage? - Answers -Amusement
parks are generally not eligible for BOP coverage. Retail stores, small restaurants with
limited cooking, and trade contractors are generally eligible for BOP coverage.
Marlene is a producer for East Goshen Mutual. She recently met with the owners of
Sugartown Farms to try and determine if they are eligible for the ISO businessowners
policy (BOP). Which one of the following facts about Sugartown Farms would prevent it
from being eligible for the BOP? - Answers -Sugartown Farms has a restaurant with a
bar for local patrons.
Sugartown Industries insures its building and personal property under the commercial
property coverage part of a commercial package policy (CPP). Following a lightning
storm, a portion of the building was damaged from a small fire. The operations manager
pulled out the CPP to make sure that the building was covered for this type of loss.
Which one of the following components of the commercial property coverage part would
provide the operations manager with information on the covered perils? - Answers -The
causes of loss form. The three types of cause of loss forms - Basic, Broad, and Special
- allow the insured to select, or the underwriter to offer, a range of covered perils.
Under the Commercial General Liability (CGL) Coverage Form, medical payments
coverage applies to which one of the following situations? - Answers -Sara is a
volunteer helping the named insured clean up their grounds.
Which one of the following causes of loss is covered by the commercial property policy
Causes of Loss—Broad Form but not the Basic Form? - Answers -Falling objects.
The Property Custody Company (PCC) stores customer property for a fee. PCC is
insured under a bailees' customers policy. One day, due to the negligence of an
unrelated party and not due to any negligence of PCC, property owned by one of PCC's
, customers is destroyed while in PCC's custody. Which one of the following describes
how PCC's insurer will handle the claim for the damage to PCC's customer's property
under PCC's bailees' customers policy? - Answers -It will pay the claim because PCC's
policy covers damage to customers' goods in its possession regardless of negligence.
A private company posted a video on the internet introducing a new product. The music
used in the video was from a copyrighted song. When the company sought coverage
under Part B of their Commercial General Liability (CGL) Coverage Form after a claim
was filed against them for damages, coverage will most likely be excluded based on
which one of the following exclusions? - Answers -Coverage for infringement of
copyright, patent, trademarks, or trade secret are excluded unless it occurs in an
advertisement exclusion.
Devon Distributing purchased smart watches for all their long haul drivers. The devices
were monitored from the headquarters so the location of the driver was always known to
Devon management. The watches could also send text messages and accept phone
calls, so there was constant communication. This allowed Devon management to
respond immediately in the event of an emergency or failure of a vehicle. This network
is an example of: - Answers -The Internet of Things.
Business income insurance covers which one of the following types of losses that could
result from a fire? - Answers -The extra expenses for renting a temporary office.
Smith Stores had net income of $5,000 per month in the 12 months before a covered
business income loss. The store is unable to reopen for three months. During that time,
continuing expenses totaled $6,000. What is the amount of Smith Stores' business
income loss? - Answers -$21,000. The business was interrupted for three months, for a
business income loss of $15,000, plus continuing expenses of $6,000, equals $21,000.
Once a risk manager has started the risk management process and has completed a
scan of the environment, which one of the following is the next step in the enterprise risk
management (ERM) process? - Answers -Identify risks.
Which one of the following policies would respond to a furnace explosion? - Answers -
Commercial property policy.
Considering the claims process, which one of the following data analysis methods
begins with data analysis of claims activity logs to identify steps taken for claims and the
timing of them? - Answers -Process mining.
Jones Retail has a Business Income (and Extra Expense) Coverage Form with a
$100,000 limit and a 50 percent coinsurance clause. At the time of a $40,000 covered
business income loss, Jones estimates its net income plus all operating expenses
(minus certain deductible items) for the one-year policy period to be $400,000. How
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 GEEKA. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
77824 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now