AINS 103 Test Questions And Answers

AINS 103 Test Questions And Answers. Workers compensation benefits include which one of the following? When a clothing manufacturer decides to expand the sale of its clothing line by offering internet purchases, it creates new exposures not otherwise covered, or not fully covered, by a traditional policy. These include Which one of the following supply chain exposures can a business mitigate by carefully wording contracts and diversifying suppliers? The commercial property coverage part of a commercial package policy contains one or more commercial property coverage forms. Each coverage form typically includes all of the following, EXCEPT: Which one of the following statements best describes the Causes of Loss—Special Form? Which one of the following best describes real property? During a business interruption, some of the organization's expenses, called continuing expenses, will continue, and other expenses, called noncontinuing expenses, will not continue. Which one of the following is an example of a continuing expense? 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 Which one of the following entities would likely have the greatest completed operations loss exposure? 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 Which one of the following statements is correct with respect to the Building and Personal Property Coverage Form (BPP) deductible? Which one of the following statements is correct with respect to the Building and Personal Property Coverage Form (BPP)? 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? Dooley's Restaurant is insured under a commercial package policy (CPP) with the Business Income (with Extra Expense) Coverage Form. The business suffered a $400,000 loss of business income when it was forced to suspend operations after flood waters damaged the basement and first floor of the restaurant. Which one of the following is an acceptable reason for the CPP insurer to deny the business income claim? Lucy's Bakery is insured under a commercial package policy with the Business Income (and Extra Expense) Coverage Form. A fire loss caused significant damage to the building. When Lucy learned that it would take 9 months to repair the building, she decided to temporarily relocate to a nearby rental location. All of the following would be considered covered extra expenses under the Business Income (and Extra Expense) Coverage Form, EXCEPT: Richard's Clothing Store has a $500,000 Business Income (and Extra Expense) Coverage Form on which there is an 80 percent coinsurance clause. A fire swept through the store. Richard's Clothing Store estimates that its net income plus all operating expenses for the policy period would have been $1,875,000. The estimated business income loss is $300,000. How much will the insurer pay? Suzanne is a commercial lines underwriter. Which one of the following components of the general liability coverage forms would she use to tailor the form to meet the specialized needs of an insured? Under Coverage A of the commercial general liability coverage form (CGL), property damage would include all of the following, EXCEPT: Leslie suffered a severe burn to her hand when her microwave oven manufactured by LH Appliances caught fire. The fire also caused damage to her kitchen cabinets. Two years later, Leslie decided to file a suit against the manufacturer when she learned that microwaves manufactured by LH Appliances had been found responsible for several other fires. LH Appliances was insured by an occurrence version of the commercial general liability (CGL) coverage form with no deductible or endorsements. Which one of the following correctly describes how LH Appliances' CGL will apply to the claim? Chuckie's chicken distributor researches the benefits of consuming chicken versus consuming beef. In November 2011, Chuckie's publishes a brochure outlining the potential health hazards of consuming beef and explaining why chicken is a healthier alternative. Chuckie continues to publish and distribute the same brochure for six months. In March 2012, several beef distributors file a suit against Chuckie's for personal and advertising injury. Which one of the following exclusions would apply to this claim under Coverage B of Chuckie's Commercial General Liability Coverage Form (CGL) with a policy period of January 2012 - January 2013? Which one of the following claims would be covered under Coverage B—Personal and Advertising Injury Liability of the Commercial General Liability Coverage Form (CGL)? Shady Stories, a tabloid newspaper, prints a false story about a local politician. Shady knows the story is false but thinks it will sell a lot of papers. The politician claims damages from Shady. Shady's Commercial General Liability (CGL) Coverage Form excludes coverage for this loss because the claim arose out of which one of the following? Austin cut his finger while working at a jobsite for Walsh Builders. He had to go to a hospital, where he received 5 stitches and a tetanus vaccine. When he received the hospital bill for $990, Austin made a claim under Coverage C—Medical Payments of Walsh Builders' CGL policy. Which one of the following reasons would the CGL insurer use for denying Austin's claim? Which one of the following statements is true regarding Coverage C—Medical Payments of the Commercial General Liability policy? JG Painting is insured under a monoline commercial auto policy. The business is located in Pennsylvania, but also does work in New Jersey and Delaware. Which one of the following would be used to add PIP insurance coverage to an auto policy? The Morlyn Corporation has a Business Auto Coverage Form (BACF) that provides liability coverage for any auto. In addition to the named insured, which one of the following would also be an insured under Morlyn's BACF when driving a covered auto? Which one of the following would qualify as an uninsured motorist pursuant to a uninsured motorist UM endorsement on a business auto policy? Which one of the following explains why an employer needs employer's liability insurance in addition to workers compensation insurance and a commercial general liability (CGL) insurance policy? Umbrella liability insurance One distinction between the umbrella liability policy and the excess liability policy is that an