Exam (elaborations)
AINS 103: PRACTICE QUIZ-ALL CHAPTERS QUESTIONS WITH CORRECT ANSWERS
- Course
- Institution
AINS 103: PRACTICE QUIZ-ALL CHAPTERS QUESTIONS WITH CORRECT ANSWERS
[Show more]
Content preview
AINS 103: PRACTICE QUIZ-ALLCHAPTERS QUESTIONS WITH
CORRECT ANSWERS
Forsmostsbusinesses,swhichsperilsposessthesgreatestsrisksofsaslargesorstotalspropertysloss?s-
sans✔✔Forsmostsbusinesses,sfiresposessthesgreatestsrisksofsaslargesorstotalsproperty sloss.
Extrasexpensessaresexpenses,sinsadditionstosordinarysexpenses,sthatsansorganizationsincur
sstosmitigatestheseffectssofsasbusinesssinterruption.sWhichsonesofsthesfollowingsissansexampl
esofsansextrasexpense?s-sans✔✔Coststosrentstemporarysofficesspace.
Anselectricalscontractorswasshiredstosinstallsasnews100-
ampsfusesboxsinsthesSmith'sshome.sDuringsinstallation,sthescontractorsinadvertentlysleftsass
mallsscrewdriversinsasductsspacesbehindsthespanel.sThreesweeksslater,sthesscrewdriverscau
sedsanselectricalsshortswhichsledstosasfire.sWhichsonesofsthesfollowingslosssexposuressbestsc
ategorizesstheselectricalscontractor'sslegalsliabilitysexposuresforsthesfiresdamages?s-
sans✔✔Completedsoperationssliability.
Uponsenteringsasrestaurant,sascustomersgraspedsashandrailsthatsbrokesoff,scausingsthescust
omerstosfallsandsbreakshisswrist.sThississansexamplesofswhichsonesofsthesfollowingstypessofsc
ommercialsgeneralsliabilitysloss?s-sans✔✔Premisessandsoperationssliability.
Inlandsmarinesinsurancesissinsurancesthatscovers:s-
sans✔✔Manysdifferentsclassessofspropertysthatstypicallysinvolvesanselementsofstransportati
onsonsland.
Workersscompensationsbenefitssincludeswhichsonesofsthesfollowing?s-
sans✔✔Rehabilitationsbenefits.
Bio-Pharmaswassashighly-
regardedspharmaceuticalscompany.sThatschangedslastsyearswhensitswassrevealedsthatsBio-
Pharmasresearchersshadsfabricatedstestsresultssofsthescompany'ssnewshypertensionsdrug,s
andsascompanysofficialsbribedsaskeysregulatorstosgetsthesdrugsapproved.sThesesrevelationss
ledstosassharpsdeclinesinssalessofsallsofsBio-
Pharma'ssdrugs,sassharpsdeclinesinsnetsincome,sandsasdeclinesinsBio-
Pharma'ssstocksprice.sThissscenariosclearlysindicatessthesvaluesofsascorporation's...?s-
sans✔✔Reputation.
Whensasclothingsmanufacturersdecidesstosexpandsthessalesofsitssclothingslinesbysofferingsint
ernetspurchases,sitscreatessnewsexposuressnotsotherwisescovered,sorsnotsfullyscovered,sbys
astraditionalspolicy.sThesesinclude:s-sans✔✔Losssorsdamagescausedsbyscomputersviruses.
,Sallysissascommercialspropertysclaimssadjuster.sWhensshesissfirstsassignedsasclaim,sshesrevi
ewssthescommercialspropertyspartsofsthespolicystosmakessuresthatsthespropertysthatssuffered
stheslosssmatchessthesdescriptionsofsthespropertysinsured.sShesalsosreviewsstheskindssandsa
mountsofscoveragesprovided.sWhichsonesofsthesfollowingscomponentssofsthescommercialspr
opertyspartswillsprovidesSallyswithsthissinformation?s-
sans✔✔Thescommercialsproperty sdeclarationsspagescontainssinformationssuchsassasdescri
ptionsofsthespropertysinsured,stheskindssandsamountssofscoveragesprovided,sandsanysoption
alscoverages,samongsothersinformation.
BillysownssasbaseballssouvenirsstoresinsCooperstown,sNY.sHesinsuredshissstoresundersasBui
ldingsandsPersonalsPropertysCoveragesForms(BPP)swithsas$275,000slimitsandsas$1,500sde
ductible.sAslargesfiresinsthesstorescausedssignificantsdamagesamountingstos$310,000sinscov
eredsdamages.sHowsmuchswouldsBilly'ssinsurerspaysundershissBPP?s-
sans✔✔$275,000. s$310,000s-
s$1,500s=s$308,500,swhichsexceedssthesBPPslimit.sThesinsurerswillspays$275,000. sThesded
uctiblesisssubtractedsfromsthesloss,snotstheslimit.
Whichsonesofsthesfollowingsissonesofsthescoveredscausessofslosssinsthescommercialsproperty
spolicysCausessofsLoss—Basicsform?s-
sans✔✔Explosionsissascoveredscausesofslosssundersthesbasicsform.sAllsthesotherssaresadditi
onalscausessofslossscoveredsbysthesbroadsforms(andstheysaresalsoscoveredsundersthesspeci
alsform).
WhichsonesofsthesfollowingsisscorrectswithsrespectstosthesIncreasedsCostsofsConstructionsad
ditionalscoveragesofsthesBuildingsandsPersonalsPropertysCoveragesForms(BPP)?s-
sans✔✔Itsprovidessassmallsamountsofsinsurancestoscoversthesincreasedscoststoscomplyswiths
ordinancessorslawssregulatingsthesrepair,srebuilding,sorsreplacementsofscoveredsbuildings.
WhichsonesofsthesfollowingswouldsbesconsideredsansextrasexpensesundersthesBusinesssInc
omes(andsExtrasExpense)sCoveragesFormsofsthescommercialspackagespolicy?s-
sans✔✔Thesincreasedscostsofsrentsatsastemporaryslocation.
Dooley'ssRestaurantsissinsuredsundersascommercialspackagespolicys(CPP)swithsthesBusine
sssIncomes(withsExtrasExpense)sCoveragesForm.sThesbusinessssufferedsas$400,000slossso
fsbusinesssincomeswhensitswassforcedstossuspendsoperationssaftersfloodswaterssdamagedst
hesbasementsandsfirstsfloorsofsthesrestaurant.sWhichsonesofsthesfollowingsissansacceptablesr
easonsforsthesCPPsinsurerstosdenysthesbusinesssincomesclaim?s-
sans✔✔Thespolicy'sscoveredscausessofslosssdidsnotsincludesflood.
WhichsonesofsthesfollowingswouldsbescoveredsundersthesExtrasExpensesinsuringsagreemen
tsofsthesBusinesssIncomes(andsExtrasExpense)sCoveragesForm?s-
sans✔✔Costsstosmovestosastemporaryslocation.
Richard'ssClothingsStoreshassas$500,000sBusinesssIncomes(andsExtrasExpense)sCoverag
esFormsonswhichstheresissans80spercentscoinsurancesclause.sAsfiressweptsthroughsthesstore.
sRichard'ssClothingsStoresestimatessthatsitssnetsincomesplussallsoperatingsexpensessforsthes
, policysperiodswouldshavesbeens$1,875,000.sThesestimatedsbusinesssincomeslosssiss$300,0
00.sHowsmuchswillsthesinsurerspay?s-
sans✔✔$100,000. sThescoinsurancesfactorswouldsbesthesamountsofsinsurancescarrieds($50
0,000)sdividedsbysthesamountsofsinsurancesrequireds(80spercentsofs$1,875,000).sThesfactor
siss1/3.sThis,smultipliedsbysthesloss,syieldss$100,000sthatsthesinsurerswillspay.
Joe'ssCleaningsServicesisshavingsasverysgoodsyear,swithsclosestosas30spercentsincreasesinss
ales.sJoesisswonderingsifsthissgrowthswillsaffectshissgeneralsliabilityspremiumsatsthesendsofsth
espolicysperiod.sWhichsonesofsthesfollowingssectionssofsthesgeneralsliabilityscoveragesformsw
illsprovidesthissinformation?s-
sans✔✔ThesCGLsdeclarationssformswillsincludesratingsandspremiumsauditingsinformation.
AscustomersfiledsassuitsagainstsPatsy'ssMarket,sclaimingsthatssheswassinjuredswhensshesslip
pedsandsfellsinsthesproducessection.sThescustomersclaimedsthatsshesbrokesherselbow,shadst
oshavessurgery,sandsmissedsasweeksofswork.sThesownersofsPatsy'ssMarketstoldsitsscommerc
ialsgeneralsliabilitys(CGL)sinsurersthatsthesproducesareaswassalwaysscleansandsthatsthesclai
mswasssuspicious.sAftersreviewingsthesmedicalsbillssandsvideosfootagesfromsthesmarket,sthe
sinsurersconcludedsthatsPatsy'ssMarketswassprobablysliablesforsthescustomer'ssinjury.sThesC
GLsinsurerswillsmostslikelysattemptstosdoswhichsonesofsthesfollowing?s-
sans✔✔Ifsthesinsurer'ssinvestigationsrevealedsthatsPatsy'ssMarketswassliablesandsthatsthesd
amagesswerescoveredsbysthespolicy,sitswouldslikelystrystosnegotiatesansoutsofscourtssettleme
nt.
ThesCommercialsGeneralsLiabilitys(CGL)sCoveragesFormsdefinessthesterms"occurrence"sas
:s-
sans✔✔Ansaccident,sincludingscontinuoussorsrepeatedsexposurestossubstantiallysthessames
generalsharmfulsconditions.
ThesCommercialsGeneralsLiabilitys(CGL)sCoveragesB—
PersonalsandsAdvertisingsInjurysLiabilitysprovidesscoveragesforswhichsonesofsthesfollowing?
s-
sans✔✔ThesdefinitionsofspersonalsandsadvertisingsinjurysinsthesCGLspolicysincludessliabilitys
arisingsfromsfalsesarrest.
InjurysarisingsoutsofswhichsonesofsthesfollowingsoffensesscouldsbescoveredsundersCoverages
BsofsthesCommercialsGeneralsLiabilityspolicy?s-
sans✔✔InjurysarisingsoutsofsfalsesarrestscouldsbescoveredsundersCoveragesBsofsthesComm
ercialsGeneralsLiabilityspolicy.
ShadysStories,sastabloidsnewspaper,sprintssasfalsesstorysaboutsaslocalspolitician.sShadyskno
wssthesstorysissfalsesbutsthinkssitswillssellsaslotsofspapers.sThespoliticiansclaimssdamagessfro
msShady.sShady'ssCommercialsGeneralsLiabilitys(CGL)sCoveragesFormsexcludesscoverag
esforsthisslosssbecausesthesclaimsarosesoutsofswhichsonesofsthesfollowing?s-
sans✔✔Writtensmaterialsthatswassknownstosbesfalse.
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 AGRADEPROMASTER. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $11.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
77858 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now