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AINS 103 (Business Insurance) SIM 50 Questions and Correct Answers
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AINS 103 (Business Insurance) SIM 50 Questions and Correct Answers
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AINS 103 (Business Insurance) SIM 50 Questions and Correct Answers1. A company owns land that is used as a softball Does not cover
diamond and recreational park for hosting employ- the director's in-
ee picnics. Once a year the company also allows a juries sustained be-
non-profit organization to hold a softball game on cause they hap-
these premises. During this year's softball game, the pened during an
director of the non-profit was injured when a softball athletic event.
hit him in the head. He asked the company that owns
the land to pay for his trip to the emergency room. The
company's unendorsed Commercial General Liability
policy
2. Lawn Chemical Company applies fertilizer and weed Completed opera-
killer to lawns and shrubs. Which one of the following tions liability
is a liability loss exposure to which Lawn Chemical
Company likely has a significant exposure?
3. Sugartown Industries insures its building and per- Causes of loss
sonal property under the commercial property cover- form
age part of a commercial package policy (CPP). Fol-
lowing a lightning 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?
4. Sandy owns a small retail store. Sandy's store is $65,000
covered under a businessowners policy (BOP) with
a $500,000 limit of insurance for its business person-
al property and a $1,000 deductible. Sandy did not
purchase any optional coverages. A fire broke out
in a neighboring store, and spread to Sandy's store.
Sandy claimed the following damages:
Description Amount Cash in a money drawer $5,000
Damage to the building $50,000 Damage to a comput-
er and printer in the office area $15,000 Damage to a
personalized sign attached to the building $1,000
How much will the BOP insurer pay for this loss?
, AINS 103 (Business Insurance) SIM 50 Questions and Correct Answers
5. Ivan is a commercial insurance producer looking to Jilian's Amusement
expand his book of business. He is researching lo- Park
cal businesses trying to determine which business-
es might be eligible for the businessowners policy
(BOP) and which would not be eligible. Which one of
the following businesses would be ineligible for BOP
coverage?
6. Business income insurance covers which one of the The extra expenses
following types of losses that could result from a fire? for renting a tempo-
rary office
7. Charlene's Clothing is a retail store selling expensive Personal and ad-
women's clothing. It is insured under an unendorsed vertising injury
Commercial General Liability (CGL) Coverage Form.
One day an employee suspects that a customer is
about to shoplift an expensive handbag, so she grabs
the customer and detains her until the police arrive.
The customer files a suit against Charlene's for hu-
miliation and minor bruising. This is an example of
which one of the following CGL loss exposures?
8. Alice has the use of a company car insured with $3,900
a Business Auto Coverage Form with one endorse-
ment for uninsured motorists (UM) coverage. Alice
was in an accident while driving the car and sus-
tained the following losses:
$ 200 - housekeeper for one day
$ 300 - physical therapy and rehabilitation
$ 400 - lost wages
$1,000 - hospital bills
$2,000 - doctor's bill
The other driver was at fault but had no insurance.
Assuming that no other insurance applies, how much
can Alice collect under her employer's UM coverage?
9. An animal damaged the interior of an insured's auto- Comprehensive
mobile while it was parked with the windows down.
Which one of the following types of physical damage
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