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AINS 103 All Practice Questions from the Course Latest Update Actual Exam 300 Questions and 100% Verified Correct Answers Verified by Professor$20.99
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AINS 103 All Practice Questions from the Course
Latest Update 2024-2025 Actual Exam 300
Questions and 100% Verified Correct Answers
Verified by Professor
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. A completed operations liability exposure.
B. An operations liability exposure.
C. A premises liability exposure.
D. A products liability exposure. - CORRECT ANSWER: A. A completed operations
liability exposure.
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 compensation the carrier receives for transporting cargo.
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 cost of disposing of undeliverable goods. - CORRECT ANSWER: A. The
compensation the carrier receives for transporting cargo.
A commercial building may contain furniture, machinery and equipment and finished
products. Which one of the following is the term generally used in property insurance
policies to refer to all these types of property?
Select one:
A. Business personal property
,B. Stock
C. Inventory
D. Commercial property - CORRECT ANSWER: A. Business personal property
A contractor is hired to install a new concrete sidewalk in front of a store. Several weeks
after the sidewalk was installed, the concrete buckles and a passerby trips and falls on
the buckled sidewalk. The passerby sues the contractor to recover medical expenses
incurred due to the fall. This commercial liability loss is categorized as
Select one:
A. Products liability.
B. Environmental liability.
C. Professional liability.
D. Completed operations liability. - CORRECT ANSWER: D. Completed operations
liability.
A customer filed a suit against Patsy's Market, claiming that she was injured when she
slipped and fell in the produce section. The customer claimed that she broke her elbow,
had to have surgery, and missed a week of work. The owner of Patsy's Market told its
commercial general liability (CGL) insurer that the produce area was always clean and
that the claim was suspicious. After reviewing the medical bills and video footage from
the market, the insurer concluded that Patsy's Market was probably liable for the
customer's injury. The CGL insurer will most likely attempt to do which one of the
following?
Select one:
A. Defend Patsy's Market in court
B. Refuse to defend Patsy's Market based on an exclusion
C. Negotiate an out of court settlement
D. Deny the claim based on the owner's suspicion - CORRECT ANSWER: C. Negotiate
an out of court settlement
A customer shopping at Clark's Food Market dropped a bottle of wine at the checkout
counter. The bottle broke and cut the customer's leg. The customer required some
minor medical attention and a few stitches. Which one of the following coverages under
,Clark's Commercial General Liability (CGL) coverage form would pay for the customer's
expenses?
Select one:
A. Personal and advertising injury liability coverage
B. Liquor liability coverage
C. Premises and operations liability coverage
D. Medical payments coverage - CORRECT ANSWER: D. Medical payments coverage
A family recently purchased a new home constructed by a residential home builder. Two
months after taking possession, several of the family members were injured when the
roof suddenly collapsed. The family sued the construction company and was awarded
monetary damages for their injuries. This is an example of which one of the following
types of commercial liability loss exposure for the construction company?
Select one:
A. Products liability
B. Premises and operations liability
C. Completed operations liability
D. Employers liability - CORRECT ANSWER: C. Completed operations liability
A motor truck cargo liability policy
Select one:
A. Covers a trucking company's liability for damage to goods of others while being
transported by the trucker.
B. Covers property in the care, custody or control of a governmental agency.
C. Provides broad coverage for parcel post shipments throughout the United States,
Canada, and Mexico.
D. Covers cargo either on an inland marine policy or an ocean marine policy. -
CORRECT ANSWER: A. Covers a trucking company's liability for damage to goods of
others while being transported by the trucker.
A not-for-profit public interest group posted a newspaper editorial on its electronic
chatroom that falsely accused a local politician of criminal activity. The public interest
, group is insured under an unendorsed Commercial General Liability (CGL) policy. The
politician who was falsely accused filed suit against the public interest group for libel.
Which one of these statements best describes the probable response the public interest
group will receive from its insurer after the insurer reviews these facts?
Select one:
A. The claim will be covered because the territory of Coverage B of the CGL policy is
worldwide for personal and advertising injury offenses that take place through the
Internet.
B. The claim will be denied because Coverage B of the CGL policy excludes criminal
acts arising out of a criminal act committed by or at the direction of the insured.
C. The claim will be denied because Coverage B of the CGL - CORRECT ANSWER: C.
The claim will be denied because Coverage B of the CGL policy excludes any injury
arising out of an electronic chatroom or electronic bulletin board.
A policy that covers damage to customer's goods while in the possession of the insured,
regardless of liability is
Select one:
A. An installation policy.
B. A bailee liability policy
C. A bailees' customers policy.
D. A dealer's policy. - CORRECT ANSWER: C. A bailees' customers policy.
A vehicle owner had a tire store install four new wheels and tires on the vehicle. On the
way home from the store, one of the wheels came off, causing the vehicle to
accidentally run off the road and strike a tree. The vehicle owner sued the tire store for
failing to properly tighten the lug nuts on the vehicle. The loss exposure faced by the tire
store in this case is known as
Select one:
A. Employers liability.
B. Completed operations liability.
C. Automobile liability.
D. Products liability. - CORRECT ANSWER: B. Completed operations liability.
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