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AINS 103 (Business Insurance) Exam Review Questions and Answers Rated A.
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AINS 103 (Business Insurance) Exam Review Questions and Answers Rated A.
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AINS 103 (Business Insurance) ExamReview Questions and Answers Rated A.
The Jackson Motor Company (JMC) is a commercial trucking company that
provides shipment services for a number of manufacturers throughout the
US. It has a good safety record, but believes that it needs insurance to
protect it from its possible legal liability for damage to the cargo of its
customers during shipment by its vehicles. Which one of the following
inland marine insurance policies is most appropriate for JMC?
Correct Answer -D. Motor truck cargo liability policy
The Paoli Power Shop has its building and business personal property
insured under a businessowners policy (BOP). Torrential rainstorms
caused a nearby river to overflow its banks and flood the area. The flood
caused significant water damage to both the building and personal
property. Which one of the following would be true under the BOP?
Correct Answer -B. The water damage would not be covered
Injury arising out of which one of the following offenses could be covered
under Coverage B of the Commercial General Liability policy?
Correct Answer -D. Wrongful eviction
Grace is injured at work, and her job responsibilities are reduced for 30
days, after which time she is permanently restricted by her doctor from
lifting greater than 25 pounds. This will eliminate one of her job duties
which is reassigned to another employee. Grace has which one of the
following types of workers compensation disabilities?
Correct Answer -B. Permanent partial disability
To what extent are extra expenses covered under the ISO Business Income
Coverage (without Extra Expense) Coverage Form?
,Correct Answer -A. Only to the extent that they actually reduce the
business income loss
The Malvern Company is a small business insured under a
businessowners policy (BOP) for both building and business personal
property. Which one of the following would be covered under the
definition of a building under The Malvern Company's BOP?
Correct Answer -C. Air conditioning equipment attached to the building
An animal damaged the interior of an insured's automobile while it was
parked with the windows down. Which one of the following types of
physical damage coverage under the Business Auto Coverage Form
(BACF) would cover this loss?
Correct Answer -Comprehensive
Under the Commercial General Liability (CGL) Coverage Form, medical
payments coverage applies to which one of the following situations?
Correct Answer -C. Sara is a volunteer helping the named insured clean up
their grounds.
Which one of the following best describes an advantage to insurers of
nonfiled classes compared with filed classes of inland marine insurance?
Correct Answer -D. Nonfiled classes allow for the customization of policy
provisions and rates for a small number of individual insureds.
Which one of the following is an example of intangible property exposed
to theft resulting from a cyber attack?
Correct Answer -D. Trade secrets
A carrier is prevented from delivering cargo aboard its ship due to an
accident that occurred while at sea. One of the losses the carrier may face
, is loss of freight. Loss of freight refers to which one of the following?
Correct Answer -D. The compensation the carrier receives for transporting
cargo.
Sam is a risk manager and is reviewing his insurance program and
coverage options with his insurance broker. Because of fluctuations in
sales due to seasonal marketing promotions, the insurance broker
recommends adding Inflation Guard optional coverage to Sam's Building
and Personal Property Coverage Form (BPP). If Sam adds Inflation Guard
as an optional coverage which one of the following is true?
Correct Answer -B. It automatically increases the limit of insurance by the
percentage of annual increase shown in the declarations.
A private company posted a video on the internet introducing a new
product. The music used in the video was from a copyrighted song. When
the company sought coverage under Part B of their Commercial General
Liability (CGL) Coverage Form after a claim was filed against them for
damages, coverage will most likely be excluded based on which one of
the following exclusions?
Correct Answer -B. Coverage for infringement of copyright, patent,
trademarks, or trade secret are excluded unless it occurs in an
advertisement exclusion
The claims manager for Providence Mall knows the longer liability claims
are open, the higher the demand and claim cost. The manager wants to
use data analytics to predict the final settlement amount of bodily injury
claims that are open over two years. The manager would also like to
examine how much the amount varies based on the different areas in the
mall and which stores have claims from injury occurring within the store.
Which one of the following methods would help predict the cost of the
claims with those attributes?
Correct Answer -C. Cluster analysis
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