AINS 23 MASTER SET QUESTIONS AND
ANSWERS WITH SOLUTIONS 2024
For most businesses, which one of the following is the peril that poses the greatest risk of a large or total
property loss?
Select one:
A. Fire
B. Windstorm
C. Flood
D. Earthquake - ANSWER A
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?
Select one:
A. Payroll of key employees
B. Cost to rent temporary office space
C. Insurance premiums
D. Debt repayments - ANSWER B
Fancy Dress Shop is a small specialty clothing boutique for women. Liability claims against Fancy Dress
Shop would most likely arise from its
Select one:
A. Premises and operations exposure.
B. Products and completed operations exposure.
C. Workers compensation exposure.
D. Advertising exposure. - ANSWER A
A building contractor uses lower grade materials than called for in the specifications for an office
building. A year after the building was completed, a balcony collapses, injuring several employees and
customers and causing damage to the building and contents. For the building construction company, this
is an example of
Select one:
, A. An operations liability exposure.
B. A completed operations liability exposure.
C. A products liability exposure.
D. A premises liability exposure. - ANSWER B
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
Select one:
A. The cost of disposing of undeliverable goods.
B. A penalty the carrier pays the shipper for nondelivery.
C. The liability for loss or damage to the cargo entrusted to it.
D. The compensation the carrier receives for transporting cargo. - ANSWER D
To be covered under a workers compensation statute, an injury or disease (in most states) must meet
which one of the following requirements?
Select one:
A. Arise out of employees' job-related injuries and diseases
B. Occur away from the regular work premises
C. Result from the employer's negligence
D. Result in total disability - ANSWER A
An individual owns a web-based business. All sales records and contact data are maintained on the same
network server as the website. Someone hacks into the server and deletes all of the saved data. Which
one of the following types of loss is this?
Select one:
A. Personal injury
B. Contingent business income
C. Intangible property
D. Tangible property - ANSWER C
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