Exam (elaborations)
AINS 103 EXAM QUESTIONS AND ANSWERS
- Course
- Institution
AINS 103 EXAM QUESTIONS AND ANSWERS
[Show more]
Content preview
AINS 103 EXAM QUESTIONS ANDANSWERS
Which one of the following best describes real property?
Select one:
A. Property being shipped to or from others.
B. Business personal property that includes furniture, machinery and equipment, and
stock/inventory.
C. Tangible property that includes land, structures permanently attached to the land,
and whatever is growing on the land.
D. Vehicles, merchandise, furniture, tools, and similar items. - Answer-C. Tangible
property that includes land, structures permanently attached to the land, and whatever
is growing on the land.
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?
Select one:
A. Cost to rent temporary office space
B. Insurance premiums
C. Debt repayments
D. Payroll of key employees - Answer-A. Cost to rent temporary office space
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?
Select one:
A. Premises and operations liability
B. Personal and advertising injury liability
C. Absolute liability
D. Products and completed operations liability - Answer-A. Premises and operations
liability
The liability loss exposure that exists when an organization is legally responsible for
bodily injury or property damage caused by an accident that occurs on an organization's
owned, leased, or rented property is
Select one:
A. Professional liability.
B. Property liability.
C. Operations liability.
D. Premises and operations liability. - Answer-D. Premises and operations liability.
Automobile liability exposures can result from
Select one:
A. Damage to or destruction of an owned vehicle.
,B. Loss of use of an owned automobile.
C. Workers compensation laws.
D. Hiring or borrowing an automobile. - Answer-D. Hiring or borrowing an automobile.
To be covered under a workers compensation statute, an injury or disease (in most
states) must meet which one of the following requirements?
Select one:
A. Result from the employer's negligence
B. Occur away from the regular work premises
C. Arise out of employees' job-related injuries and diseases
D. Result in total disability - Answer-C. Arise out of employees' job-related injuries and
diseases
Cyber risk intellectual property loss exposures include
Select one:
A. Cyber extortion of trade secrets.
B. Personal and advertising injury liability.
C. Loss to tangible property.
D. Property damage liability. - Answer-A. 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?
Select one:
A. Two disgruntled employees use the computer system to transfer office funds into
their own personal bank accounts.
B. The computer system is hacked and data including credit card numbers are stolen.
C. Thieves break into the main office and steal several desktop computers.
D. There is a fire in the storage area which destroys the backup copy of the office
computer system. - Answer-B. The computer system is hacked and data including credit
card numbers are stolen.
A commercial building may contain furniture, machinery and equipment and finished
products. Which one of the following is the term generally used in property insurance
policies to refer to all these types of property?
Select one:
A. Business personal property
B. Stock
C. Inventory
D. Commercial property - Answer-A. Business personal property
A family recently purchased a new home constructed by a residential home builder. Two
months after taking possession, several of the family members were injured when the
roof suddenly collapsed. The family sued the construction company and was awarded
monetary damages for their injuries. This is an example of which one of the following
types of commercial liability loss exposure for the construction company?
,Select one:
A. Products liability
B. Premises and operations liability
C. Completed operations liability
D. Employers liability - Answer-C. Completed operations liability
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?
Select one:
A. A defective gas range manufactured by the insured explodes causing injury.
B. A customer's house is set on fire while the insured is doing plumbing work.
C. A dissatisfied customer sues an insured for slander.
D. A customer is injured when she slips on a wet floor in a store. - Answer-A. A
defective gas range manufactured by the insured explodes causing injury
Joe Motors, which services automobiles, wants to maintain the goodwill of its
customers. This is best accomplished by
Select one:
A. Purchasing garage liability insurance.
B. Purchasing garagekeepers insurance.
C. Lowering the physical damage deductible under its business auto insurance.
D. Raising liability limits under its business auto insurance. - Answer-B. Purchasing
garagekeepers insurance.
Workers compensation benefits include which one of the following?
Select one:
A. Death benefits of 100 percent of wage loss
B. Pain and suffering benefits
C. Rehabilitation benefits
D. Property damage benefits - Answer-C. Rehabilitation benefits
An email was sent to a company's employees containing a harmful attachment. Several
employees opened the attachment which allowed hackers to obtain customer contact
information. This cyber risk loss is
Select one:
A. Damage to intangible property.
B. Damage to personal property.
C. Damage to tangible property.
D. Errors and omissions liability. - Answer-A. Damage to intangible property.
An individual owns a web-based business. All sales records and contact data are
maintained on the same network server as the website. Someone hacks into the server
and deletes all of the saved data. Which one of the following types of loss is this?
Select one:
A. Tangible property
, B. Personal injury
C. Intangible property
D. Contingent business income - Answer-C. Intangible property
Property insurance policies use the term "personal property" to refer to the
Select one:
A. Property in transit.
B. Contents in and around a building.
C. Buildings not attached to the main building.
D. Company's copyrights and trademarks. - Answer-B. Contents in and around a
building.
In business income insurance, the expenses that an organization would not have
incurred if the business interruption had not occurred are called
Select one:
A. Continuing expenses.
B. Contingent expenses.
C. Excludable expenses.
D. Extra expenses. - Answer-D. Extra expenses.
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
Select one:
A. Employers liability.
B. Completed operations liability.
C. Automobile liability.
D. Products liability. - Answer-B. Completed operations liability.
Which one of the following loss exposures exist when a business can be held legally
liable for bodily injury or property damage caused by their repair or contracting work?
Select one:
A. Operations liability
B. Completed operations liability
C. Workers' compensation liability
D. Products liability - Answer-B. Completed operations liability
Inland marine insurance is insurance that covers
Select one:
A. Businesses that own or operate watercraft, or import or export goods.
B. Many different classes of property that typically involve an element of transportation
on land.
C. Companies that ship goods by commercial vessel on inland waterways.
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 biggdreamer. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $19.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
79223 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now