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AINS 103 Practice Quiz-All Chapters Questions With Complete solution!
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AINS 103 Practice Quiz-All Chapters Questions With Complete solution!
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AINS S103: SPractice SQuiz-All SChapters SQuestions SWithSComplete Ssolution!!
For S.most S.businesses, S.which S.peril S.poses S.the S.greatest S.risk S.of S.a S.large S.or S.total S.property
S.loss? S.- S.Correct S.Answer S.- S.For S.most S.businesses, S.fire S.poses S.the S.greatest S.risk S.of S.a
S.large S.or S.total S.property S.loss.
Extra S.expenses S.are S.expenses, S.in S.addition S.to S.ordinary S.expenses, S.that S.an S.organization
S.incurs S.to S.mitigate S.the S.effects S.of S.a S.business S.interruption. S.Which S.one S.of S.the S.following
S.is S.an S.example S.of S.an S.extra S.expense? S.- S.Correct S.Answer S.- S.Cost S.to S.rent S.temporary
S.office S.space.
An S.electrical S.contractor S.was S.hired S.to S.install S.a S.new S.100-amp S.fuse S.box S.in S.the S.Smith's
S.home. S.During S.installation, S.the S.contractor S.inadvertently S.left S.a S.small S.screwdriver S.in S.a
S.duct S.space S.behind S.the S.panel. S.Three S.weeks S.later, S.the S.screwdriver S.caused S.an S.electrical
S.short S.which S.led S.to S.a S.fire. S.Which S.one S.of S.the S.following S.loss S.exposures S.best
S.categorizes S.the S.electrical S.contractor's S.legal S.liability S.exposure S.for S.the S.fire S.damages? S.-
S.Correct S.Answer S.- S.Completed S.operations S.liability.
Upon S.entering S.a S.restaurant, S.a S.customer S.grasped S.a S.handrail S.that S.broke S.off, S.causing
S.the S.customer S.to S.fall S.and S.break S.his S.wrist. S.This S.is S.an S.example S.of S.which S.one S.of S.the
S.following S.types S.of S.commercial S.general S.liability S.loss? S.- S.Correct S.Answer S.- S.Premises S.and
S.operations S.liability.
Inland S.marine S.insurance S.is S.insurance S.that S.covers: S.- S.Correct S.Answer S.- S.Many S.different
S.classes S.of S.property S.that S.typically S.involve S.an S.element S.of S.transportation S.on S.land.
Workers S.compensation S.benefits S.include S.which S.one S.of S.the S.following? S.- S.Correct S.Answer
S.- S.Rehabilitation S.benefits.
Bio-Pharma S.was S.a S.highly-regarded S.pharmaceutical S.company. S.That S.changed S.last S.year
S.when S.it S.was S.revealed S.that S.Bio-Pharma S.researchers S.had S.fabricated S.test S.results S.of S.the
S.company's S.new S.hypertension S.drug, S.and S.a S.company S.official S.bribed S.a S.key S.regulator S.to
,S.get S.the S.drug S.approved. S.These S.revelations S.led S.to S.a S.sharp S.decline S.in S.sales S.of S.all S.of
S.Bio-Pharma's S.drugs, S.a S.sharp S.decline S.in S.net S.income, S.and S.a S.decline S.in S.Bio-Pharma's
S.stock S.price. S.This S.scenario S.clearly S.indicates S.the S.value S.of S.a S.corporation's...? S.- S.Correct
S.Answer S.- S.Reputation.
When S.a S.clothing S.manufacturer S.decides S.to S.expand S.the S.sale S.of S.its S.clothing S.line S.by
S.offering S.internet S.purchases, S.it S.creates S.new S.exposures S.not S.otherwise S.covered, S.or S.not
S.fully S.covered, S.by S.a S.traditional S.policy. S.These S.include: S.- S.Correct S.Answer S.- S.Loss S.or
S.damage S.caused S.by S.computer S.viruses.
Sally S.is S.a S.commercial S.property S.claims S.adjuster. S.When S.she S.is S.first S.assigned S.a S.claim,
S.she S.reviews S.the S.commercial S.property S.part S.of S.the S.policy S.to S.make S.sure S.that S.the
S.property S.that S.suffered S.the S.loss S.matches S.the S.description S.of S.the S.property S.insured. S.She
S.also S.reviews S.the S.kinds S.and S.amount S.of S.coverage S.provided. S.Which S.one S.of S.the
S.following S.components S.of S.the S.commercial S.property S.part S.will S.provide S.Sally S.with S.this
S.information? S.- S.Correct S.Answer S.- S.The S.commercial S.property S.declarations S.page S.contains
S.information S.such S.as S.a S.description S.of S.the S.property S.insured, S.the S.kinds S.and S.amounts
S.of S.coverage S.provided, S.and S.any S.optional S.coverages, S.among S.other S.information.
Billy S.owns S.a S.baseball S.souvenir S.store S.in S.Cooperstown, S.NY. S.He S.insured S.his S.store S.under
S.a S.Building S.and S.Personal S.Property S.Coverage S.Form S.(BPP) S.with S.a S.$275,000 S.limit S.and S.a
S.$1,500 S.deductible. S.A S.large S.fire S.in S.the S.store S.caused S.significant S.damage S.amounting S.to
S.$310,000 S.in S.covered S.damages. S.How S.much S.would S.Billy's S.insurer S.pay S.under S.his S.BPP? S.-
S.Correct S.Answer S.- S.$275,000. S.$310,000 S.- S.$1,500 S.= S.$308,500, S.which S.exceeds S.the S.BPP
S.limit. S.The S.insurer S.will S.pay S.$275,000. S.The S.deductible S.is S.subtracted S.from S.the S.loss, S.not
S.the S.limit.
Which S.one S.of S.the S.following S.is S.one S.of S.the S.covered S.causes S.of S.loss S.in S.the S.commercial
S.property S.policy S.Causes S.of S.Loss—Basic S.form? S.- S.Correct S.Answer S.- S.Explosion S.is S.a
S.covered S.cause S.of S.loss S.under S.the S.basic S.form. S.All S.the S.others S.are S.additional S.causes S.of
S.loss S.covered S.by S.the S.broad S.form S.(and S.they S.are S.also S.covered S.under S.the S.special
S.form).
Which S.one S.of S.the S.following S.is S.correct S.with S.respect S.to S.the S.Increased S.Cost S.of
S.Construction S.additional S.coverage S.of S.the S.Building S.and S.Personal S.Property S.Coverage S.Form
S.(BPP)? S.- S.Correct S.Answer S.- S.It S.provides S.a S.small S.amount S.of S.insurance S.to S.cover S.the
S.increased S.cost S.to S.comply S.with S.ordinances S.or S.laws S.regulating S.the S.repair, S.rebuilding, S.or
S.replacement S.of S.covered S.buildings.
Which S.one S.of S.the S.following S.would S.be S.considered S.an S.extra S.expense S.under S.the
S.Business S.Income S.(and S.Extra S.Expense) S.Coverage S.Form S.of S.the S.commercial S.package
S.policy? S.- S.Correct S.Answer S.- S.The S.increased S.cost S.of S.rent S.at S.a S.temporary S.location.
, Dooley's S.Restaurant S.is S.insured S.under S.a S.commercial S.package S.policy S.(CPP) S.with S.the
S.Business S.Income S.(with S.Extra S.Expense) S.Coverage S.Form. S.The S.business S.suffered S.a S.
$400,000 S.loss S.of S.business S.income S.when S.it S.was S.forced S.to S.suspend S.operations S.after
S.flood S.waters S.damaged S.the S.basement S.and S.first S.floor S.of S.the S.restaurant. S.Which S.one S.of
S.the S.following S.is S.an S.acceptable S.reason S.for S.the S.CPP S.insurer S.to S.deny S.the S.business
S.income S.claim? S.- S.Correct S.Answer S.- S.The S.policy's S.covered S.causes S.of S.loss S.did S.not
S.include S.flood.
Which S.one S.of S.the S.following S.would S.be S.covered S.under S.the S.Extra S.Expense S.insuring
S.agreement S.of S.the S.Business S.Income S.(and S.Extra S.Expense) S.Coverage S.Form? S.- S.Correct
S.Answer S.- S.Costs S.to S.move S.to S.a S.temporary S.location.
Richard's S.Clothing S.Store S.has S.a S.$500,000 S.Business S.Income S.(and S.Extra S.Expense) S.Coverage
S.Form S.on S.which S.there S.is S.an S.80 S.percent S.coinsurance S.clause. S.A S.fire S.swept S.through
S.the S.store. S.Richard's S.Clothing S.Store S.estimates S.that S.its S.net S.income S.plus S.all S.operating
S.expenses S.for S.the S.policy S.period S.would S.have S.been S.$1,875,000. S.The S.estimated S.business
S.income S.loss S.is S.$300,000. S.How S.much S.will S.the S.insurer S.pay? S.- S.Correct S.Answer S.- S.
$100,000. S.The S.coinsurance S.factor S.would S.be S.the S.amount S.of S.insurance S.carried S.($500,000)
S.divided S.by S.the S.amount S.of S.insurance S.required S.(80 S.percent S.of S.$1,875,000). S.The S.factor
S.is S.1/3. S.This, S.multiplied S.by S.the S.loss, S.yields S.$100,000 S.that S.the S.insurer S.will S.pay.
Joe's S.Cleaning S.Service S.is S.having S.a S.very S.good S.year, S.with S.close S.to S.a S.30 S.percent
S.increase S.in S.sales. S.Joe S.is S.wondering S.if S.this S.growth S.will S.affect S.his S.general S.liability
S.premium S.at S.the S.end S.of S.the S.policy S.period. S.Which S.one S.of S.the S.following S.sections S.of
S.the S.general S.liability S.coverage S.form S.will S.provide S.this S.information? S.- S.Correct S.Answer S.-
S.The S.CGL S.declarations S.form S.will S.include S.rating S.and S.premium S.auditing S.information.
A S.customer S.filed S.a S.suit S.against S.Patsy's S.Market, S.claiming S.that S.she S.was S.injured S.when
S.she S.slipped S.and S.fell S.in S.the S.produce S.section. S.The S.customer S.claimed S.that S.she S.broke
S.her S.elbow, S.had S.to S.have S.surgery, S.and S.missed S.a S.week S.of S.work. S.The S.owner S.of
S.Patsy's S.Market S.told S.its S.commercial S.general S.liability S.(CGL) S.insurer S.that S.the S.produce
S.area S.was S.always S.clean S.and S.that S.the S.claim S.was S.suspicious. S.After S.reviewing S.the
S.medical S.bills S.and S.video S.footage S.from S.the S.market, S.the S.insurer S.concluded S.that S.Patsy's
S.Market S.was S.probably S.liable S.for S.the S.customer's S.injury. S.The S.CGL S.insurer S.will S.most
S.likely S.attempt S.to S.do S.which S.one S.of S.the S.following? S.- S.Correct S.Answer S.- S.If S.the
S.insurer's S.investigation S.revealed S.that S.Patsy's S.Market S.was S.liable S.and S.that S.the S.damages
S.were S.covered S.by S.the S.policy, S.it S.would S.likely S.try S.to S.negotiate S.an S.out S.of S.court
S.settlement.
The S.Commercial S.General S.Liability S.(CGL) S.Coverage S.Form S.defines S.the S.term S."occurrence"
S.as: S.- S.Correct S.Answer S.- S.An S.accident, S.including S.continuous S.or S.repeated S.exposure S.to
S.substantially S.the S.same S.general S.harmful S.conditions.
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