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AINS103 Practice Questions, AINS 103 Questions And ANSWERS LATEST UPDATE 2024.
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AINS103 Practice Questions, AINS 103 Questions And ANSWERS LATEST UPDATE 2024.
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AINS103 Practice Questions, AINS 103Questions And ANSWERS LATEST
UPDATE 2024
In .property .insurance, .the .term ."Property .in .Transit" .refers .to .which .one .of .the .following? .- .Correct
.Answer .- .Property .while .being .transported .by .trucks, .cars, .buses, .trains, .airplanes, .and .ships.
Extra .expenses .are .expenses, .in .addition .to .ordinary .expenses, .that .an .organization .incurs .to .mitigat
e .the .effects .of .a .business .interruption. .Which .one .of .the .following .is .an .example .of .an .extra .expen
se? .- .Correct .Answer .- .Cost .to .rent .temporary .office .space.
Upon .entering .a .restaurant, .a .customer .grasped .a .handrail .the .broke .off, .causing .the .customer .to .f
all .and .break .his .wrist. .This .is .an .example .of .which .one .of .the .following .types .of .commercial .gener
al .liability .loss? .- .Correct .Answer .- .Premises .and .operations .liability.
A .contractor .is .hired .to .install .a .new .concrete .sidewalk .in .front .of .a .store. .Several .weeks .after .the .s
idewalk .was .installed, .the .concrete .buckles .and .a .passerby .trips .and .falls .on .the .buckled .sidewalk. .T
he .passerby .sues .the .contractor .to .recover .medical .expenses .incurred .due .to .the .fall. .This .commerc
ial .liability .is .categorized .as .- .Correct .Answer .- .Completed .operations .liability.
A .carrier .that .is .prevented .by .an .accident .from .delivering .the .cargo .aboard .its .ship .may .face .an .exp
osure .called .loss .of .freight, .which .is .- .Correct .Answer .- .The .compensation .the .carrier .receives .for .tr
ansporting .cargo.
The .management .of .Maryland .Marine .Co. .
(MMC) .must .ensure .that .proper .coverage .is .obtained .for .work- .related .injuries. .The .employee .popu
lation .of .MMC .is .a .mixture .of .full-time .and .part-
time .employees .as .well .as .some .casual .employees .for .one-time .tasks. .Much .of .MMC's .work .is .done
.by .independent .contractors .and .temporary .employees .during .peak .seasons. .Which .one .of .the .follo
wing .statements .about .these .persons .is .true? .- .Correct .Answer .- .Many .states .workers .compensatio
n .statutes .exclude .casual .labor .(temporary .employees).
,When .a .clothing .manufacturer .decides .to .expand .the .sale .of .its .clothing .line .by .offering .internet .pu
rchases, .it .creates .new .exposures .not .otherwise .covered, .or .not .fully .covered, .by .a .traditional .polic
y. .These .include .- .Correct .Answer .- .Loss .or .damage .caused .by .computer .virsuses.
Meat .Products .Company .
(MPC) .runs .packing .plants .in .three .Midwest .states. .The .company .was .in .the .news .recently .because .
of .its .labor .practices. .The .Department .of .Labor .
(DOL) .investigated .complaints .from .five .female .employees .that .MPC .discriminated .against .them. .Th
e .DOL .found .the .claim .was .true. .The .Immigration .and .Naturalization .Service .
(INS) .found .that .the .company .employed .illegal .immigrants .and .paid .them .less .than .the .minimum .w
age. .When .this .news .became .public, .MPC's .reputation .was .severely .harmed. .This .scenario .illustrates
.which .source .of .reputation .risk .- .Correct .Answer .- .Regulatory .and .legal .compliance.
Perils .are .an .important .aspect .of .property .insurance. .Which .one .of .the .following .statements .is .corr
ect .with .respect .to .perils? .- .Correct .Answer .- .A .peril .is .the .actual .means .by .which .property .is .dama
ged .or .destroyed .such .as .fire, .lightning, .windstorm, .hail .or .theft.
During .a .business .interruption, .some .of .the .organizations .expenses, .called .continuing .expenses, .will .
continue, .and .other .expenses, .called .non-
continuing .expenses, .will .not .continue. .Which .one .of .the .following .is .an .example .of .a .continuing .ex
pense? .- .Correct .Answer .- .Payroll .of .key .employees.
Which .one .of .the .following .loss .exposure .exist .when .a .business .can .be .held .legally .liable .for .bodily .
injury .or .property .damaged .caused .by .their .repair .or .contracting .work? .- .Correct .Answer .- .Complet
ed .operations .liability.
Which .one .of .the .following .entities .would .likely .have .the .greatest .completed .operations .loss .exposu
re? .- .Correct .Answer .- .Paul .the .plumber.
Inland .marine .insurance .is .insurance .that .covers .- .Correct .Answer .- .Many .different .classes .of .proper
ty .that .typically .involve .an .element .of .transportation .on .land.
Joe .signs .a .contract .with .Home .Builders .to .install .the .electrical .wiring .for .a .new .home. .He .uses .his .
own .tools .and .follows .the .specifications .in .the .contract. .Joe .is .burned .while .installing .the .wiring. .Do
es .Home .Builders' .workers .compensation .policy .cover .Joe's .injury? .- .Correct .Answer .- .No, .because .J
oe .is .not .an .employee .of .Home .Builders.
Cyber .risk .intellectual .property .loss .exposures .include .- .Correct .Answer .- .Cyber .extortion .of .trade .se
crets.
As .part .of .its .assessment .of .its .cyber .risk, .an .organization .should .consider .whether .there .are .any .in
tangible .property .exposures. .Which .one .of .the .following .would .best .be .classified .as .an .intangible .pr
operty .loss? .- .Correct .Answer .- .The .computer .system .is .hacked .and .data .including .credit .card .numb
ers .are .stolen.
,Property .insurance .policies .use .the .term ."personal .property" .to .refer .to .the .- .Correct .Answer .- .Cont
ents .in .and .around .a .building.
In .business .income .insurance, .the .expenses .that .an .organization .would .not .have .incurred .if .the .busi
ness .interruption .have .not .occurred .are .called .- .Correct .Answer .- .Extra .expenses.
Radley .Contracting .Company .is .installing .new .signage .on .the .front .of .a .building. .George, .a .passerby
.walking .near .the .building .is .injured .when .a .Radley .employee .accidentally .drops .a .tool .from .a .crane
. .George .likely .has .the .ability .to .assert .which .one .the .following .types .of .claim? .- .Correct .Answer .- .P
remises .and .operations .liability.
John .purchased .a .new .lawnmower .two .years .ago. .After .significant .use, .the .lawnmower .needed .serv
icing. .A .repairman .sharpened .the .blade .but .he .failed .to .reattach .it .properly .to .the .lawnmower. .Wh
en .John .was .using .the .lawnmower, .the .blade .flew .off .and .seriously .injured .John's .daughter. .From .t
he .standpoint .of .a .commercial .liability .loss .for .the .repair .shop, .this .is .an .example .of .- .Correct .Answ
er .- .Completed .operations .liability.
Automobile .liability .exposures .can .result .from .- .Correct .Answer .- .Hiring .or .borrowing .an .automobile
.
Workers .compensation .benefits .include .which .one .of .the .following? .- .Correct .Answer .- .Rehabilitatio
n .Benefits.
The .unauthorized .intrusion .into .a .company's .computer .network .resulting .in .damage .to .intellectual .p
roperty .is .best .classified .as .which .one .of .the .following .types .of .cyber .liability .exposures? .- .Correct .
Answer .- .Intangible .property.
An .email .was .sent .to .a .company's .employee .containing .a .harmful .attachment. .Several .employees .o
pened .the .attachment .which .allowed .hackers .to .obtain .customer .contact .information. .This .cyber .ris
k .loss .is .- .Correct .Answer .- .Damage .to .intangible .property.
Which .one .of .the .following .best .describes .real .property? .- .Correct .Answer .- .Tangible .property .that .i
nclude .land, .structures .permanently .attached .to .the .land, .and .whatever .is .growing .on .the .land.
Which .one .of .the .following .is .an .example .of .injury .or .damage .arising .from .an .occurrence .that .woul
d .be .covered .by .the .products .and .completed .operations .liability .portion .of .the .Commercial .General .
Liability .
(CGL) .Coverage .Form? .- .Correct .Answer .- .A .defective .gas .range .manufactured .by .the .insured .explod
es .causing .injury.
A .building .contractor .uses .lower .grade .materials .than .called .for .in .the .specifications .for .an .office .bu
ilding. .A .year .after .the .building .was .completed, .a .balcony .collapses, .injuring .several .employees .and .
customers .and .causing .damage .to .the .building .and .contents. .For .the .building .construction .company,
.this .is .an .example .of .- .Correct .Answer .- .A .completed .operations .liability .exposure.
, To .be .covered .under .a .workers .compensation .statute, .an .injury .or .disease .
(in .most .states) .must .meet .which .one .of .the .following .requirements? .- .Correct .Answer .- .Arise .out .o
f .employees .job-related .injuries .and .diseases.
Which .one .of .the .following .supply .chain .exposures .can .a .business .mitigate .by .carefully .wording .con
tracts .and .diversifying .suppliers? .- .Correct .Answer .- .Loss .of .supply .due .to .external .events.
Bio-
Pharma .was .a .highly .regarded .pharmaceutical .company. .That .changed .last .year .when .it .was .reveale
d .that .Bio-
Pharma .researchers .had .fabricated .test .results .of .the .company's .new .hypertension .drug, .a .company
.official .bribed .a .key .regulator .to .get .the .drug .approved. .These .revelations .led .to .a .sharp .decline .in .
sales .of .all .Bio-Pharma's .drugs, .a .sharp .decline .in .net .income, .and .a .decline .in .Bio-
Pharma's .stock .price. .This .scenario .clearly .indicates .the .value .of .a .corporation's .- .Correct .Answer .- .
Reputation.
Sally .is .a .commercial .property .claims .adjuster. .When .she .first .assigned .a .claim, .she .reviews .the .com
mercial .property .part .of .the .policy .to .make .sure .that .the .property .that .suffered .the .loss .matches .th
e .description .of .the .property .insured. .She .also .reviews .the .kinds .and .amounts .of .coverage .provided
. .Which .of .the .following .components .of .the .commercial .property .part .will .provide .Sally .with .this .inf
ormation? .- .Correct .Answer .- .Commercial .property .declarations .page.
Billy .owns .a .baseball .souvenir .store .in .Cooperstown, .NY. .He .insured .his .store .under .a .Building .and .
Personal .Property .Coverage .Form .(BPP) .with .a .$275,000 .limit .and .a .
$1,500 .deductible. .A .large .fire .in .the .store .caused .significant .damage .amounting .to .
$310,000 .in .covered .damages. .How .much .would .Billy's .insurer .pay .under .his .BPP? .- .Correct .Answer
.- .$275,000.
Which .one .of .the .following .is .one .of .the .covered .causes .of .loss .in .the .commercial .property .policy .C
auses .of .Loss .- .Basic .Form? .- .Correct .Answer .- .Explosion.
Which .one .of .the .following .statements .about .Inflation .Guard .optional .coverage .of .the .Building .and .
Personal .Property .Coverage .Form .
(BPP) .is .true? .- .Correct .Answer .- .It .automatically .increases .the .limit .of .insurance .by .the .percentage .
of .annual .increase .shown .in .the .declarations.
Which .one .of .the .following .would .be .covered .under .the .Extra .Expense .insuring .agreement .of .the .B
usiness .Income .
(and .Extra .Expense) .Coverage .Form? .- .Correct .Answer .- .Costs .to .move .to .a .temporary .location.
Lucy's .Bakery .is .insured .under .a .commerical .package .policy .with .the .Business .Income .
(and .Extra .Expenses) .Coverage .Form. .A .fire .loss .caused .significant .damage .to .the .building. .When .Lu
cy .learned .that .it .would .take .9 .months .to .repair .the .building, .she .decided .to .temporarily .relocate .t
o .a .nearby .rental .location. .All .of .the .following .would .be .considered .covered .extra .expenses .under .t
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