Exam (elaborations)
AINS 103 (Business Insurance) Stimulated Questions and Answers
- Course
- Institution
AINS 103 (Business Insurance) Stimulated Questions and Answers
[Show more]
Content preview
AINS 103 (Business Insurance) StimulatedQuestions and Answers
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 -It automatically increases the limit of insurance by the
percentage of annual increase shown in the declarations.
The insured is a sole proprietor who owns a business auto insured by a
Business Auto Coverage Form with a personal injury protection (PIP)
endorsement. While driving the car, she was in an accident in which the
following losses were incurred:
$2,000 housekeeper for one month
$3,000 physical therapy and rehabilitation
$4,000 damage to the covered auto
$10,000 hospital bills
$20,000 pain and suffering to the other driver
Assuming adequate limits and that no other insurance policies apply, how
much can she recover pursuant to the PIP endorsement?
Correct Answer -$15,000. Pain and suffering and auto physical damage
are not covered under PIP.
Charlene's Clothing is a retail store selling expensive women's clothing. It
is insured under an unendorsed Commercial General Liability (CGL)
Coverage Form. One day an employee suspects that a customer is about
to shoplift an expensive handbag, so she grabs the customer and detains
, her until the police arrive. The customer files a suit against Charlene's for
humiliation and minor bruising. This is an example of which one of the
following CGL loss exposures?
Correct Answer -Personal and advertising injury provides coverage for
injuries such as loss of reputation, humiliation, and economic loss arising
out of any of several offenses. False arrest is one of the offenses.
Joshua owns a mid-sized contracting company and was considering a job
on a multi-million-dollar project. Due to the size of the project, Joshua had
difficulty determining the maximum possible loss. Considering the size of
the project, Joshua should do which one of the following?
Correct Answer -Purchase excess limits provided by an excess or umbrella
liability policy.
To what extent are extra expenses covered under the ISO Business Income
Coverage (without Extra Expense) Coverage Form?
Correct Answer -Only to the extent that they actually reduce the business
income loss.
An injured customer sued the ABC General Store for damages resulting
from bodily injury sustained when the customer slipped and fell while
shopping in the hardware section. The customer suffered a knee and
elbow injury. ABC General is insured under a businessowners policy
(BOP) with a $500,000 liability and medical expense limit of insurance.
The insurer defended ABC General against the suit, but the court awarded
the customer $285,000 for his injury and prejudgment interest of $15,000.
The insurer's cost of defending the grocery store was $20,000. What is the
total amount that the BOP insurer will pay for this claim?
Correct Answer -$320,000.
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
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 saraciousstuvia. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $14.39. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
75619 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now