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AINS 103 Chapter 1 questions with answers
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AINS 103 Chapter 1 questions withanswers
A Commercial Property Loss Exposure is: - .......🔷ANSWERS🔶......✔✔ Is any condition
that presents the possibility that an organization will sustain a loss resulting from damage or
theft of its property.
Real Property (Realty): - .......🔷ANSWERS🔶......✔✔ Tangible property consisting of land,
all structures permanently attached to the land, (including fixtures permanently attached)
and whatever is growing on the land.
Personal Property: - .......🔷ANSWERS🔶......✔✔ Includes moveable items owned by a
business, such as supplies, furniture, computers, machinery, tools, and some vehicles,
(forklifts.)
Categories of Commercial Property: - .......🔷ANSWERS🔶......✔✔ Buildings, personal
property contained in buildings, money and securities, vehicles and watercraft, property in
the possession of others, property in transit, floating property.
Significant perils which can result in catastrophic loss: - .......🔷ANSWERS🔶......✔✔ Fire,
Theft, Windstorm, Flood, Earthquake, Terrorism, Vandalism, and War.
For most businesses, what type of peril poses the greatest risk of a large or total property
loss? - .......🔷ANSWERS🔶......✔✔ Fire.
Almost all businesses face commercial property loss exposures because they own or have a
legal interest in what 2 kinds of property? - .......🔷ANSWERS🔶......✔✔ Real property, and
personal property.
, Joanne owns a construction business. What kind of property are the company forklifts
considered? - .......🔷ANSWERS🔶......✔✔ Personal property.
Financial consequences of loss; Reduced Value: - .......🔷ANSWERS🔶......✔✔ When a loss
occurs, the property's value can be reduced or eliminated.
Financial consequences of loss; Lost Income: - .......🔷ANSWERS🔶......✔✔ A business may
not be able to use the property in question until it has been repaired, restored or replaced.
Financial consequences of loss; Extra Expenses: - .......🔷ANSWERS🔶......✔✔ Businesses
sometimes have to pay additional costs to keep operating after a loss.
Key parts of calculating a business income loss are: - .......🔷ANSWERS🔶......✔✔
Determining the lost revenue and any continuing and extra expenses the business incurred
during the period of interruption.
Continuing Expenses: - .......🔷ANSWERS🔶......✔✔ Expenses that continue to be incurred
during a business interruption, such as payroll of key employees, debt repayments, taxes,
and insurance premiums.
Extra Expenses: - .......🔷ANSWERS🔶......✔✔ Expenses that are paid in addition to
continuing expenses for the purpose of mitigating the effects of a business interruption,
such as relocation, utilities, payroll, and equipment.
T/F: The causes of business income losses associated with property exposures are typically
the same as those for physical damage losses. - .......🔷ANSWERS🔶......✔✔ True.
When property that a business uses to generate income becomes damaged or stolen, what
kind of loss is typically suffered? - .......🔷ANSWERS🔶......✔✔ Business income loss.
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