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AINS 103_ Chapter 1 WITH ANSWERS GRADED A+
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AINS 103_ Chapter 1 WITH ANSWERS GRADED A+
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10/5/24, 8:55 AMEUNICE
AINS 103: Chapter 1WITH 100% SURE ANSWERS
Terms in this set (89)
Is any condition that presents the possibility that an organization will sustain a loss
A Commercial Property Loss Exposure is:
resulting from damage or theft of its property.
Tangible property consisting of land, all structures permanently attached to the land,
Real Property (Realty):
(including fixtures permanently attached) and whatever is growing on the land.
Includes moveable items owned by a business, such as supplies, furniture,
Personal Property:
computers, machinery, tools, and some vehicles, (forklifts.)
Buildings, personal property contained in buildings, money and securities, vehicles
Categories of Commercial Property: and watercraft, property in the possession of others, property in transit, floating
property.
Significant perils which can result in Fire, Theft, Windstorm, Flood, Earthquake, Terrorism, Vandalism, and War.
catastrophic loss:
For most businesses, what type of peril Fire.
poses the greatest risk of a large or total
property loss?
Almost all businesses face commercial Real property, and personal property.
property loss exposures because they own
or have a legal interest in what 2 kinds of
property?
Joanne owns a construction business. What Personal property.
kind of property are the company forklifts
considered?
Financial consequences of loss; Reduced When a loss occurs, the property's value can be reduced or eliminated.
Value:
Financial consequences of loss; Lost A business may not be able to use the property in question until it has been repaired,
Income: restored or replaced.
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Financial consequences of loss; Extra Businesses sometimes have to pay additional costs to keep operating after a loss.
Expenses:
Key parts of calculating a business income Determining the lost revenue and any continuing and extra expenses the business
loss are: incurred during the period of interruption.
Expenses that continue to be incurred during a business interruption, such as payroll
Continuing Expenses:
of key employees, debt repayments, taxes, and insurance premiums.
Expenses that are paid in addition to continuing expenses for the purpose of
Extra Expenses: mitigating the effects of a business interruption, such as relocation, utilities, payroll,
and equipment.
T/F: The causes of business income losses True.
associated with property exposures are
typically the same as those for physical
damage losses.
When property that a business uses to Business income loss.
generate income becomes damaged or
stolen, what kind of loss is typically
suffered?
What kinds of expenses constitute Payroll of key employees, debt repayments, property and payroll taxes, rent or lease
continuing expenses? payments, and insurance premiums.
What are the key parts of calculating a Determining the loss revenue and any continuing and extra expenses the business
business income loss? incurred during the period of interruption.
What kinds of expenses constitute extra Relocation, utilities, payroll, equipment.
expenses?
What are the potential consequences for Damages, Defense costs, and reputational harm.
an organization if a court rules that it is
responsible for injury, harm, or damage to
another party?
The court may require the liable organization to pay damages to the injured/harmed
Damages:
party.
The liable organization may have to pay legal defense costs and the cost of
Defense costs:
investigating the claim.
The organization may suffer harm to its reputation as a result of accusations made
Reputational Harm:
against it, whether or not it is found to be liable.
The possibility that an organization will be held liable because of bodily injury or
property damage caused by an accident that either occurs on the organization's
Premises and operations liability exposure:
premises or arises out of the organization's ongoing (as opposed to completed)
operations on or off those premises.
The possibility that an organization will be held liable because of bodily injury or
Products and completed operations
property damage caused either by the manufacturer, distribution, or sale of an
liability exposure:
unsafe or defective product or the entity's completed work.
Crystal works for a convenience store. She Premises and operations liability loss exposure.
mopped a spill but forgot to put up a
warning sign about the wet floor, and a
customer slipped and injured himself. What
kind of loss exposure this this an example
of?
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