AINS 103 EXAM NEWEST ACTUAL
EXAM 2025 QUESTIONS AND DETAILED
CORRECT ANSWERS | VERIFIED STUDY
GUIDE
Joe signs a contract with Home Builders to install the
electrical wiring for a new home. He uses his own tools
and follows the specifications in the contract. Joe is
burned while installing the wiring. Does Home Builders'
workers compensation policy cover Joe's injury?
A. Yes, because Home Builders must provide no-fault
protection for employees
B. Yes, because the injury arose out of and in the course
of employment
C. No, because Joe is not an employee of Home Builders
D. No, because Joe probably contributed to the injury
Correct Answer C. No, because Joe is not an employee of
Home Builders
Which one of these offenses would not be considered a
personal and advertising injury under Coverage B of the
Commercial General Liability Coverage Form?
A. Wrongful eviction from a dwelling or premises that a
person occupies
B. Refusing to hire a qualified job applicant because of his
ethnicity
C. An organization's unauthorized use of another's
advertising idea in an advertisement
,D. Malicious prosecution Correct Answer B. Refusing to
hire a qualified job applicant because of his ethnicity
Lucy, the owner of Lucy's Flower Shop, was delivering a
vase of flowers to a customer, Mrs. White. When Mrs.
White opened her front door, her dog ran outside,
knocking the flowers from Lucy's hands, and causing the
vase to shatter and injure Mrs. White. Although the
customer insisted that she would be fine, Lucy received a
medical bill for injuries to Mrs. White two years later. The
medical treatment had been received one week before
Lucy received the bill. Lucy explains the situation to her
insurer and requests coverage under her Commercial
General Liability Coverage Form (CGL). Which one of the
following is correct regarding whether the medical
expenses will be covered under Coverage C—Medical
Payments of the CGL?
A. No, because the medical expenses must be incurred
and reported to the insurer within one year after the date
of the accident.
B. No, because the coverage does not apply to accidents
that occur away fr Correct Answer A. No, because the
medical expenses must be incurred and reported to the
insurer within one year after the date of the accident.
An electrical contractor was hired to install a new 100-amp
fuse box in the Smith's home. During installation, the
contractor inadvertently left a small screwdriver in a duct
space behind the panel. Three weeks later, the
screwdriver caused an electrical short which led to a fire.
,Which one of the following loss exposures best
categorizes the electrical contractor's legal liability
exposure for the fire damages?
A. Products liability
B. Completed operations liability
C. Property damage liability
D. Liability for operations by others Correct Answer B.
Completed operations liability
Which one of the following is the main source of the data
used in the process mining of the claims process?
A. Claim activity logs
B. Social media networks
C. Financial reports
D. Claims audits Correct Answer A. Claim activity logs
Jones Retail has a Business Income (and Extra Expense)
Coverage Form with a $100,000 limit and a 50 percent
coinsurance clause. At the time of a $40,000 covered
business income loss, Jones estimates its net income plus
all operating expenses (minus certain deductible items) for
the one-year policy period to be $400,000. How much will
the insurer pay? Correct Answer $20,000 The insurer will
pay $20,000. [$100,000/($400,000 x 50%)] x $40,000 =
$20,000
Devon Distributing purchased smart watches for all their
long haul drivers. The devices were monitored from the
headquarters so the location of the driver was always
, known to Devon management. The watches could also
send text messages and accept phone calls, so there was
constant communication. This allowed Devon
management to respond immediately in the event of an
emergency or failure of a vehicle. This network is an
example of:
A. Artificial intelligence
B. The Internet of Things.
C. Social media.
D. A big data network. Correct Answer B. The Internet of
Things.
John's Hardware store is located along Main Street in a
section dedicated to small businesses. One day a new
employee was helping a customer fill their propane
cylinder when an explosion occurred damaging a number
of vehicles, injuring the customer and the new employee,
and damaging the adjoining business. John's employee
was found to be at fault for the explosion. Which one of
the following would be covered under John's Coverage A
of commercial general liability (CGL) policy?
A. The property damage to John's Hardware Store
B. The slander suit falsely accusing the customer of
manipulating the propane cylinder before John's employee
attempted to fill it.
C. The injury to John's customer
D. The burns suffered by John's new employee Correct
Answer C. The injury to John's customer
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