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AINS 103 (Business Insurance) All Course Exam Bank Questions with Verified Solutions
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AINS 103 (Business Insurance) All Course Exam Bank Questions with Verified Solutions
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AINS 103 (Business Insurance) All CourseExam Bank Questions with Verified
Solutions
Glorious Gifts is a retail store located in a shopping center along with four
other retail tenants. It is insured under a businessowners policy (BOP) with
a $300,000 limit for Personal Property and a $1,000 deductible. One day
during business hours, a fire started in the pizza shop next door and
spread to Glorious Gifts. Everyone was able to escape safely, but Glorious
Gifts suffered the following damages: $75,000 in store merchandise,
$10,000 in shelving units that had been installed, a $3,000 computer, and
$1,500 in cash. How much will the BOP insurer pay?
Select one:
A. $77,000
B. $87,000
C. $88,000
D. $88,500
Verified Answer -B. $87,000
The Neapolitan is insured under a businessowners policy (BOP) for both
building and business personal property. Which one of the following
would be covered under the definition of a building under The
Neapolitan’s BOP?
Select one:
A. The land that the building sits on
B. The outdoor lighting fixtures
C. Permanently installed fixtures and improvements paid for by tenants
D. The security fence that surrounds the building
Verified Answer -B. The outdoor lighting fixtures
,The medical expense coverage under Business Section II-Liability Coverage
of the ISO businessowners policy (BOP) would cover small and
reasonable medical claims for which one of the following?
Select one:
A. Injured customers requiring hospitalization.
B. The insured's spouse
C. Employees of the insured organization
D. Volunteer workers at the insured organization
Verified Answer -D. Volunteer workers at the insured organization
The Liquor Liability exclusion would apply to which one of the following
businesses insured by an ISO businessowners policy?
Select one:
A. An accounting office that serves beer and wine at its company picnic
B. A convenience store that sells beer
C. A bridal shop that offers champagne to the bridal party during a fitting
D. A motel that offers customers a free happy hour every Friday
Verified Answer -B. A convenience store that sells beer
Jack, a customer at Clark's Market, sued the grocery store for damages
resulting from bodily injury he sustained when he slipped and fell while
shopping in the produce area. Jack broke his elbow and suffered a back
injury. Clark's Market is insured under a businessowners policy (BOP) with
a $300,000 liability and medical expense limit of insurance. The insurer
defended Clark's Market against the suit, but the court awarded Jack
$285,000 for his injury and a prejudgment interest of $5,000. The insurer's
cost of defending the grocery store was $20,000. What is the total amount
that the BOP insurer will pay for this claim?
,Select one:
A. $290,000
B. $300,000
C. $305,000
D. $310,000.
Verified Answer -D. $310,000.
Jenn is a producer for Goshen Mutual. She is trying to determine if a new
prospect, Mr. Cooper's Café is eligible for the businessowners policy
(BOP). Mr. Cooper's Café is a small restaurant located on the first floor of
an office building, serving only breakfast and lunch. Cooking on the
premises is limited to coffee makers, a grill, and microwave appliances. It
has seating for 10-15 people, and large refrigerated cases with food, beer
and wine to-go. Which one of the following factors about Mr. Cooper's
Café would make it ineligible for BOP coverage?
Select one:
A. It has seating for 15 people.
B. It sells beer and wine.
C. It is located in an office building.
D. It does some cooking on premises
Verified Answer -B. It sells beer and wine.
Which one of the following risk categories is generally eligible for
coverage under a businessowners policy (BOP)?
A. Office buildings
B. Financial institutions
C. Bars and pubs
D. Automobile dealers
Verified Answer -A. Office buildings
, Which one of the following types of loss exposure is typically covered by
a businessowners policy (BOP)?
Select one:
A. Professional liability
B. Business personal property
C. Workers compensation
D. Commercial auto
Verified Answer -B. Business personal property
Rose's Flower Shop has its building and business personal property
insured under a businessowners policy (BOP). The building was struck by
lightning and the resulting fire caused significant damage to both the
building and personal property. Which one of the following would be
excluded under the BOP?
Select one:
A. The part of the building that was added 5 years ago
B. The water damage caused by the firefighters
C. The cost of upgrades due to local ordinances
D. The part of the building that was struck by the lightning
Verified Answer -C. The cost of upgrades due to local ordinances
Springer's Attire is insured under an unendorsed businessowners policy
(BOP). The building suffered significant damage when it was struck by
lightning. Building codes require that the building must be brought into
compliance with current code when the repair work is done. Bringing the
building into compliance with current codes will increase the cost of the
repair by $50,000. Which one of the following correctly explains how
Springer's Attire's BOP will respond to the loss?
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