AINS 103 Test Questions &
Answers
Danforth Grocery Store specializes in fresh produce and is open 24 hours
year-round. The store has contracts with suppliers to deliver produce and
foods by 5am daily, so the parking area at the rear of the store is
congested from 4:30am to 5:30am. Customer...
AINS 103 Test Questions & Answers Danforth Grocery Store specializes in fresh produce and is open 24 hours year-round. The store has contracts with suppliers to deliver produce and foods by 5am daily, so the parking area at the rear of the store is congested from 4:30am to 5:30am. Customer traffic is heaviest from 7am to 9am, and again from 3pm to 6pm. The store has had six slip and fall claims from customers in the past year. Danforth Grocery Store is most exposed to which one of the following types of liability loss? A. Completed operatio ns liability B. Premises liability C. Automobile liability D. Professional liability - ANSWER B. Premises liability Entities eligible for financial institution bonds are A. Not eligible for for the ISO Commercial Crime Program B. Insured by the Federal Deposit Insurance Corporation (FDIC) C. Required to carry the ISO Commercial Crime Form D. Excluded under the Commercial General Liability Crime Form - ANSWER A. Not eligible for for the ISO Commercial Crime Program Smith Stores had net income of $5,000 per month in the 12 months before a covered business income loss. The store is unable to reopen for three months. During that time, continuing expenses totaled $6,000. What is the amount of Smith Stores' business income loss? A. $6,000 B. $15,000 C. $21,0 00 D. $66,000 - ANSWER C. $21,000 The business was interrupted for three months, for a business income loss of $15,000, plus continuing expenses of $6,000. The Malvern Company is a small business insured under a BOP for both building and BPP. Which one of the following would be covered under the definition of a building under the company's BOP? A. Product manufactured by Malvern Company B. The land that the building sits on C. Air conditioning equipment attached to the building D. The fence that surround s the building - ANSWER C. Air conditioning equipment attached to the building The Workers Compensation and Employers Liability Insurance Policy provides that the insured is responsible to reimburse the insurer to which one of the following situations? A. Any benefits paid by the insurer even though the insured has failed to comply with policy conditions B. Benefits paid to employees with pre -existing injuries C. Penalties levied under a workers compensation law against the insured for noncompliance with health and safety laws and regulations D. A liability suit was filed against the insured for occupational injuries to employees - ANSWER C. Penalties levied under a workers compensation law against the insured for noncompliance with health and safety laws and regulations With advancements in technology, underwriting data is becoming increasingly abundant and more reliable. Which on e of the following is an example of how technological advancements are changing underwriting? A. Olivia has been asked to spend the next week analyzing unique risks presented by specialized accounts B. Liam works for ABC Underwriters and scheduled a meetin g with a reinsurer to discuss additional limits for his accounts C. ABC Underwriters are spending less time cultivating relationships and trust with insureds D. Bethany works for ABC Underwriters and dedicates more time each day to collecting and evaluatin g her underwriting applications - ANSWER A. Olivia has been asked to spend the next week analyzing unique risks presented by specialized accounts Technology is providing underwriters with opportunities to shift their focus to performing other functions, s uch as performing more personalized services, cultivating customer relationships, evaluating books of business, and analyzing unique risks presented by specialized accounts A carrier is prevented from delivering cargo aboard its ship due to an accident t hat occurred while at sea. One of the losses the carrier may face is loss of freight. Loss of freight refers to which of the following? A. The liability for loss and damage to the cargo entrusted to it B. The cost of disposing of undeliverable goods C. The compensation the carrier received for transporting cargo D. A penalty the carrier pays the shipper for nondelivery - ANSWER C. The compensation the carrier received for transporting cargo An intangible asset resulting from a collection of perceptions a nd opinions, past and present, about an organization that resides in the consciousness of its stakeholders is known as an organization's A. Intellectual property B. Social responsibility C. Reputation D. Code of ethics - ANSWER C. Reputation Which of th e following policies would respond to a furnace explosion? A. Equipment breakdown B. BOP C. Office equipment and systems policy D. Commercial property policy - ANSWER D. Commercial property policy Sugartown Industries insures its building and personal p roperty under the commercial property coverage part of a CPP. Following a lightweight storm, a portion of the building was damaged from a small fire. The operations manager pulled out the CPP to make sure that the building was covered for this type of loss . Which one of the following components of the commercial property coverage part would provide the operations manager with information on the covered perils? A. Conditions B. Declarations C. Causes of loss form D. Building and personal property coverage form - ANSWER C. Causes of loss form To what extent are extra expenses covered under the ISO Business Income Coverage (without Extra Expense) Coverage form? A. To the full extent of the expenses incurred by the insured B. Only to the extent that they actually reduce business income loss C. On an actual cash value basis
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