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AINS103 Practice Questions with answers, AINS 103
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AINS103 Practice Questions with answers, AINS 103
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AINS103 Practice Questions with answers,AINS 103
In property insurance, the term "Property in Transit" refers to which one of the following?
- .......🔷ANSWERS🔶......✔✔ 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
mitigate the effects of a business interruption. Which one of the following is an example of
an extra expense? - .......🔷ANSWERS🔶......✔✔ Cost to rent temporary office space.
Upon entering a restaurant, a customer grasped a handrail the broke off, causing the
customer to fall and break his wrist. This is an example of which one of the following types
of commercial general liability loss? - .......🔷ANSWERS🔶......✔✔ Premises and operations
liability.
A contractor is hired to install a new concrete sidewalk in front of a store. Several weeks
after the sidewalk was installed, the concrete buckles and a passerby trips and falls on the
buckled sidewalk. The passerby sues the contractor to recover medical expenses incurred
due to the fall. This commercial liability is categorized as - .......🔷ANSWERS🔶......✔✔
Completed operations liability.
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 - .......🔷ANSWERS🔶......✔✔ The compensation
the carrier receives for transporting cargo.
The management of Maryland Marine Co. (MMC) must ensure that proper coverage is
obtained for work- related injuries. The employee population 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 following statements about these persons is true?
,- .......🔷ANSWERS🔶......✔✔ Many states workers compensation statutes exclude casual
labor (temporary employees).
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 - .......🔷ANSWERS🔶......✔✔ 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.
The 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
wage. When this news became public, MPC's reputation was severely harmed. This scenario
illustrates which source of reputation risk - .......🔷ANSWERS🔶......✔✔ Regulatory and
legal compliance.
Perils are an important aspect of property insurance. Which one of the following statements
is correct with respect to perils? - .......🔷ANSWERS🔶......✔✔ A peril is the actual means by
which property is damaged 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 expense?
- .......🔷ANSWERS🔶......✔✔ 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?
- .......🔷ANSWERS🔶......✔✔ Completed operations liability.
Which one of the following entities would likely have the greatest completed operations loss
exposure? - .......🔷ANSWERS🔶......✔✔ Paul the plumber.
,Inland marine insurance is insurance that covers - .......🔷ANSWERS🔶......✔✔ Many
different classes of property 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. Does Home Builders' workers compensation policy cover Joe's injury? -
.......🔷ANSWERS🔶......✔✔ No, because Joe is not an employee of Home Builders.
Cyber risk intellectual property loss exposures include - .......🔷ANSWERS🔶......✔✔ Cyber
extortion of trade secrets.
As part of its assessment of its cyber risk, an organization should consider whether there are
any intangible property exposures. Which one of the following would best be classified as an
intangible property loss? - .......🔷ANSWERS🔶......✔✔ The computer system is hacked and
data including credit card numbers are stolen.
Property insurance policies use the term "personal property" to refer to the
- .......🔷ANSWERS🔶......✔✔ Contents in and around a building.
In business income insurance, the expenses that an organization would not have incurred if
the business interruption have not occurred are called - .......🔷ANSWERS🔶......✔✔ 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? - .......🔷ANSWERS🔶......✔✔ Premises and operations liability.
John purchased a new lawnmower two years ago. After significant use, the lawnmower
needed servicing. A repairman sharpened the blade but he failed to reattach it properly to
the lawnmower. When John was using the lawnmower, the blade flew off and seriously
injured John's daughter. From the standpoint of a commercial liability loss for the repair
shop, this is an example of - .......🔷ANSWERS🔶......✔✔ Completed operations liability.
, Automobile liability exposures can result from - .......🔷ANSWERS🔶......✔✔ Hiring or
borrowing an automobile.
Workers compensation benefits include which one of the following?
- .......🔷ANSWERS🔶......✔✔ Rehabilitation Benefits.
The unauthorized intrusion into a company's computer network resulting in damage to
intellectual property is best classified as which one of the following types of cyber liability
exposures? - .......🔷ANSWERS🔶......✔✔ Intangible property.
An email was sent to a company's employee containing a harmful attachment. Several
employees opened the attachment which allowed hackers to obtain customer contact
information. This cyber risk loss is - .......🔷ANSWERS🔶......✔✔ Damage to intangible
property.
Which one of the following best describes real property? - .......🔷ANSWERS🔶......✔✔
Tangible property that include 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 would be covered by the products and completed operations liability portion of the
Commercial General Liability (CGL) Coverage Form? - .......🔷ANSWERS🔶......✔✔ A
defective gas range manufactured by the insured explodes causing injury.
A building contractor uses lower grade materials than called for in the specifications for an
office building. 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 - .......🔷ANSWERS🔶......✔✔ A
completed operations liability exposure.
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