Exam (elaborations)
AINS 103 TEST QUESTIONS AND ANSWERS
- Course
- Institution
AINS 103 TEST QUESTIONS AND ANSWERS
[Show more]
Content preview
AINS 103 TEST QUESTIONS AND ANSWERSWorkers compensation benefits include which one of the following?
Rehabilitation benefits
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
Loss or damage caused by computer viruses.
Which one of the following supply chain exposures can a business mitigate by carefully
wording contracts and diversifying suppliers?
Loss of supply due to external events
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:
A range of covered peril
Which one of the following statements best describes the Causes of Loss—Special
Form?
The Special Form provides coverage for direct physical losses other than those that are
specifically excluded.
Which one of the following best describes real property?
Tangible property that includes land, structures permanently attached to the land, and
whatever is growing on the land.
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?
,Payroll of key employees
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
Completed operations liability.
Which one of the following entities would likely have the greatest completed operations
loss exposure?
Paul the plumber
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
The compensation the carrier receives for transporting cargo.
Which one of the following statements is correct with respect to the Building and
Personal Property Coverage Form (BPP) deductible?
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.
Which one of the following statements is correct with respect to the Building and
Personal Property Coverage Form (BPP)?
Due to coverage extensions, it is possible for the total payment for one loss to exceed
the policy limit.
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?
The increased cost of rent at a temporary location
, 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?
The policy's covered causes of loss did not include flood.
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:
The salary of the assistant baker and cake decorator
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?
$100,000
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?
Endorsements
Under Coverage A of the commercial general liability coverage form (CGL), property
damage would include all of the following, EXCEPT:
Infringement of copyright
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
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 $12.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
71498 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now