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AINS 103 Test Exam Questions with Correct Answers.
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AINS 103 Test Exam Questions with Correct Answers.AINS 103 Test Exam Questions with Correct Answers.
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AINS 103 Test Exam Questions with Correct Answers.Workers compensation benefits include which one of the following? - Correct Answer
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 - Correct Answer 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? - Correct Answer 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: - Correct Answer A range of covered peril
Which one of the following statements best describes the Causes of Loss—Special
Form? - Correct Answer 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? - Correct Answer 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 no continuing expenses, will not
continue. Which one of the following is an example of a continuing expense? - Correct
Answer 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 - Correct Answer Completed operations liability.
Which one of the following entities would likely have the greatest completed operations
loss exposure? - Correct Answer 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 - Correct Answer 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? - Correct Answer 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)? - Correct Answer 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? -
Correct Answer 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? - Correct Answer 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: - Correct Answer 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? - Correct Answer
$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? - Correct Answer Endorsements
Under Coverage A of the commercial general liability coverage form (CGL), property
damage would include all of the following, EXCEPT: - Correct Answer 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
microwaves manufactured by LH Appliances had been found responsible for several
, other fires. LH Appliances was insured by an occurrence version of the commercial
general liability (CGL) coverage form with no deductible or endorsements. Which one of
the following correctly describes how LH Appliances' CGL will apply to the claim? -
Correct Answer the CGL will defend the insured, and pay both for both the bodily injury
and damages to the cabinets if found liable.
Chuckle’s chicken distributor researches the benefits of consuming chicken versus
consuming beef. In November 2011, Chuckle’s publishes a brochure outlining the
potential health hazards of consuming beef and explaining why chicken is a healthier
alternative. Chucky continues to publish and distribute the same brochure for six
months. In March 2012, several beef distributors file a suit against Chuckle’s for
personal and advertising injury. Which one of the following exclusions would apply to
this claim under Coverage B of Chuckle’s Commercial General Liability Coverage Form
(CGL) with a policy period of January 2012 - January 2013? - Correct Answer Material
published prior to the policy period
Which one of the following claims would be covered under Coverage B—Personal and
Advertising Injury Liability of the Commercial General Liability Coverage Form (CGL)? -
Correct Answer A store manager accuses a young man of shoplifting, apprehends him,
and locks him in a storage room until the police arrive. When it is discovered that the
young man is innocent, he files a claim against the store.
Shady Stories, a tabloid newspaper, prints a false story about a local politician. Shady
knows the story is false but thinks it will sell a lot of papers. The politician claims
damages from Shady. Shad’s Commercial General Liability (CGL) Coverage Form
excludes coverage for this loss because the claim arose out of which one of the
following? - Correct Answer written material that was known to be false
Austin cut his finger while working at a jobsite for Walsh Builders. He had to go to a
hospital, where he received 5 stitches and a tetanus vaccine. When he received the
hospital bill for $990, Austin made a claim under Coverage C—Medical Payments of
Walsh Builders' CGL policy. Which one of the following reasons would the CGL insurer
use for denying Austin's claim? - Correct Answer He is entitled to workers compensation
benefits.
Which one of the following statements is true regarding Coverage C—Medical
Payments of the Commercial General Liability policy? - Correct Answer Medical
payments coverage is a means of making prompt settlements.
JG Painting is insured under a monocline commercial auto policy. The business is
located in Pennsylvania, but also does work in New Jersey and Delaware. Which one of
the following would be used to add PIP insurance coverage to an auto policy? - Correct
Answer Endorsements
The Merlyn Corporation has a Business Auto Coverage Form (BACF) that provides
liability coverage for any auto. In addition to the named insured, which one of the
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