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AINS 103 Test Questions And Answers.
Question 1: In property insurance, the term "property in transit"
refers to which one of the following?
CORRECT ANSWER : C. Property while being transported by
trucks, cars, buses, trains, airplanes, and ships
Question 2: 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?
CORRECT ANSWER : B. Cost to rent temporary office space
Question 3: Radley Contracting Company is installing new
signage on the front of a building. George, a passerby walking near the building is injured when a Radley employee accidentally drops a tool from a crane. George likely has the ability to assert which one the following types of claim?
CORRECT ANSWER : B. Premises and operations liability
Question 4: Which one of the following entities would likely
have the greatest completed operations loss exposure?
CORRECT ANSWER : A. Paul the plumber
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Question 5: A carrier that is prevented by an accident from
delivering the cargo aboard its ship may face an exposure called loss of freight, which is
CORRECT ANSWER : B. The compensation the carrier
receives for transporting cargo.
Question 6: To be covered under a workers compensation
statute, an injury or disease (in most states) must meet which one of the following requirements?
CORRECT ANSWER : A. Arise out of employees' job-related
injuries and diseases
Question 7: The unauthorized intrusion into a company's
computer network resulting in damage to intellectual property is best classified as which one of the following types of cyber liability exposures?
CORRECT ANSWER : D. Intangible property
Question 8: An email was sent to a company's employees
containing a harmful attachment. Several employees opened the
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attachment which allowed hackers to obtain customer contact information. This cyber risk loss is
CORRECT ANSWER : D. Damage to intangible property.
Question 9: NH Manufacturing insures its building and personal
property under the commercial property coverage part of a commercial package policy (CPP). During a blizzard, a portion of the building's roof collapsed from the weight of snow. The risk 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 risk manager with information on the covered perils?
CORRECT ANSWER: A. Causes of loss form
Question 10: Which one of the following is one of the covered
causes of loss in the commercial property policy Causes of Loss—Basic form?
CORRECT ANSWER : Vandalism
Question 11: Billy owns a baseball souvenir store in
Cooperstown, NY. He insured his store under a Building and
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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?
CORRECT ANSWER : $275K
Question 12: Which one of the following statements about
Inflation Guard optional coverage of the Building and Personal Property Coverage Form (BPP) is true?
CORRECT ANSWER : C. It is automatically increases the limit
of insurance by the percentage of annual increase shown in the declarations.
Question 13: Which one of the following would be covered
under the Extra Expense insuring agreement of the Business Income (and Extra Expense) Coverage Form?
CORRECT ANSWER: D. Costs to move to a temporary
location
Question 14: 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?