Exam (elaborations)
AINS 103:EXAM 2024/2025 WITH 100% ACCURATE SOLUTIONS
- Course
- Institution
AINS 103:EXAM 2024/2025 WITH 100% ACCURATE SOLUTIONS
[Show more]
Content preview
AINS 103:EXAM 2024/2025 WITH 100%ACCURATE SOLUTIONS
For most businesses, which peril poses the greatest risk of a large or
total property loss? - Precise Answer ✔✔For most businesses, fire poses
the greatest risk of a large or total property loss.
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? - Precise
Answer ✔✔Cost to rent temporary office space.
An electrical contractor was hired to install a new 100-amp fuse box in
the Smith's home. During installation, the contractor inadvertently left a
small screwdriver in a duct space behind the panel. Three weeks later,
the screwdriver caused an electrical short which led to a fire. Which one
of the following loss exposures best categorizes the electrical
contractor's legal liability exposure for the fire damages? - Precise
Answer ✔✔Completed operations liability.
Upon entering a restaurant, a customer grasped a handrail that 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? -
Precise Answer ✔✔Premises and operations liability.
,Inland marine insurance is insurance that covers: - Precise Answer
✔✔Many different classes of property that typically involve an element
of transportation on land.
Workers compensation benefits include which one of the following? -
Precise Answer ✔✔Rehabilitation benefits.
Bio-Pharma was a highly-regarded pharmaceutical company. That
changed last year when it was revealed that Bio-Pharma researchers had
fabricated test results of the company's new hypertension drug, and a
company official bribed a key regulator to get the drug approved. These
revelations led to a sharp decline in sales of all of 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...? - Precise
Answer ✔✔Reputation.
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: - Precise Answer ✔✔Loss or damage caused by computer
viruses.
Sally is a commercial property claims adjuster. When she is first
assigned a claim, she reviews the commercial property part of the policy
to make sure that the property that suffered the loss matches the
description of the property insured. She also reviews the kinds and
amount of coverage provided. Which one of the following components
of the commercial property part will provide Sally with this
information? - Precise Answer ✔✔The commercial property
,declarations page contains information such as a description of the
property insured, the kinds and amounts of coverage provided, and any
optional coverages, among other information.
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? - Precise Answer
✔✔$275,000. $310,000 - $1,500 = $308,500, which exceeds the BPP
limit. The insurer will pay $275,000. The deductible is subtracted from
the loss, not the limit.
Which one of the following is one of the covered causes of loss in the
commercial property policy Causes of Loss—Basic form? - Precise
Answer ✔✔Explosion is a covered cause of loss under the basic form.
All the others are additional causes of loss covered by the broad form
(and they are also covered under the special form).
Which one of the following is correct with respect to the Increased Cost
of Construction additional coverage of the Building and Personal
Property Coverage Form (BPP)? - Precise Answer ✔✔It provides a
small amount of insurance to cover the increased cost to comply with
ordinances or laws regulating the repair, rebuilding, or replacement of
covered buildings.
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? - Precise 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? - Precise Answer ✔✔The policy's covered causes of loss did not
include flood.
Which one of the following would be covered under the Extra Expense
insuring agreement of the Business Income (and Extra Expense)
Coverage Form? - Precise Answer ✔✔Costs to move to a temporary
location.
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? - Precise Answer
✔✔$100,000. The coinsurance factor would be the amount of insurance
carried ($500,000) divided by the amount of insurance required (80
percent of $1,875,000). The factor is 1/3. This, multiplied by the loss,
yields $100,000 that the insurer will pay.
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 JUICYGRADES. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $16.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
67096 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now