AINS23 Practice Exam Questions and Answers All Correct
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AINS23
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AINS23
AINS23 Practice Exam Questions and Answers All Correct
Which one of the following statements is true if the named insured is an individual under the Commercial General Liability (CGL) Coverage Form?
Select one:
A. His or her spouse is also an insured only when specifically listed on the declara...
AINS23 Practice Exam Questions
and Answers All Correct
Which one of the following statements is true if the named insured is an individual under
the Commercial General Liability (CGL) Coverage Form?
Select one:
A. His or her spouse is also an insured only when specifically listed on the declarations
page.
B. Coverage applies only to claims arising from the conduct of a business owned solely
by the named insured.
C. Both the named insured and spouse are covered for their non-business activities.
D. Coverage is provided for any business owned by the insured's spouse. - Answer ✔
B. Coverage applies only to claims arising from the conduct of a business owned solely
by the named insured.
The each occurrence limit in the Commercial General Liability (CGL) Coverage Form is
the most the insurer will pay for the sum of which one of the following arising out of a
single occurrence?
Select one:
A. Personal and advertising injury and damage to premises rented to you
B. Bodily injury and property damage liability under Coverage A and medical expenses
under Coverage C
C. Products-completed operations liability and medical expenses under Coverage C
D. Bodily injury and property damage liability under Coverage A and personal and
advertising injury - Answer ✔ B. Bodily injury and property damage liability under
Coverage A and medical expenses under Coverage C
For the purpose of the Other Insurance condition of the Commercial General Liability
(CGL) Coverage Form, all applicable coverages are classified as either excess
insurance or
Select one:
A. Surplus insurance.
B. Secondary insurance.
C. Reinsurance.
D. Primary insurance. - Answer ✔ D. Primary insurance.
When rating Commercial General Liability (CGL) Coverage, the two rates that apply for
most classifications are the
Select one:
A. Products-completed operations rate and the pollution rate.
B. Owners and contractors protective rate and the premises-operations rate.
,C. Bodily injury rate and the personal injury rate.
D. Premises-operations rate and the products-completed operations rate. - Answer ✔ D.
Premises-operations rate and the products-completed operations rate.
Dan owns a bike repair shop which is located on the first floor of a 3 story building
owned by Jane. Jane uses the third floor for her own business and rents out the second
floor to a graphic design studio.
While doing some bike repair work, Dan accidentally started a fire which spread
throughout the entire building. The damage from the fire consisted of : i) damage to
Dan's business personal property - $150,000; ii) damage to the bike repair shop building
rented to Dan - $250,000; iii) damage to the remainder of the building - $300,000; iv)
damage to Jane's business personal property - $80,000 and v) bodily injury to a
customer of the graphic design studio on the 2nd floor - $300,000.
Dan's bike repair shop is insured by a Commercial General Liability policy (occurrence
version) with no deductible and no endorsements. Dan's insurer has determined that
Dan is legally liable for all the damages. The policy's each occu - Answer ✔ A. $780,000
Big Corporation leases automobiles for its employees to drive on business. In addition,
a few employees use their own cars in performing their job duties. Which one of the
following automobile loss exposures exists for Big Corporation?
Select one:
A. Bailee loss exposure
B. Products and completed operations liability loss exposure
C. Operations liability loss exposure
D. Employers nonownership liability loss exposure - Answer ✔ D. Employers
nonownership liability loss exposure
Matthew Jones, the named insured under a Business Auto Coverage form (BACF),
requires his employees to use their own cars for business purposes. One of Matthew's
employees, Paul, causes an accident while driving his own truck for the business.
Matthew's BACF shows symbol 3 for liability coverage. Which one of the following
correctly indicates why Matthew is not an insured under the policy for Paul's use of his
own truck in this situation?
Select one:
A. Matthew was not the driver of the truck.
B. Matthew is covered for hired autos only.
C. Matthew is covered for owned private passenger autos only.
D. Matthew is covered for specifically described autos only. - Answer ✔ C. Matthew is
covered for owned private passenger autos only.
Which one of the following losses would be covered by the Business Auto Coverage
Form (BACF)?
Select one:
A. Computers the insured has delivered are damaged by rain after the insured leaves
them in an open area following delivery.
, B. The insured has to pay an employee's medical bills because of an accident involving
one of the insured's vehicles.
C. The insured has agreed to pay for liability losses caused by the insured's negligence
that a shipper may incur while the insured is hauling goods for the shipper.
D. Part of a load of plasma TV screens is damaged when the insured's truck stops
suddenly and the TVs slide in the back of the truck. - Answer ✔ C. The insured has
agreed to pay for liability losses caused by the insured's negligence that a shipper may
incur while the insured is hauling goods for the shipper.
Mitchell is a highway contractor whose company is covered with a workers
compensation policy and an unendorsed Business Auto Coverage Form (BACF). Which
one of the following losses would be covered by his business auto policy?
Select one:
A. An employee runs over a subcontractor's equipment with an owned auto.
B. Vandals damage a bulldozer at a construction site after the end of the workday.
C. One of his employees is injured while making a delivery to a job site.
D. One of his autos has an engine breakdown on the road and has to be repaired -
Answer ✔ A. An employee runs over a subcontractor's equipment with an owned auto.
Tom's CD player was stolen from the front seat of his van while he was making a
service call for a customer. Under the Business Auto Coverage Form (BACF), this loss
is
Select one:
A. Covered.
B. Excluded.
C. Prohibited.
D. Endorsed. - Answer ✔ B. Excluded.
Robert has a Business Auto Coverage Form (BACF) with limits of liability of $500,000.
A claimant is suing Robert for $1,000,000 because of an accident involving one of
Robert's trucks. Before a jury can render a judgment, Robert files for bankruptcy. If the
jury subsequently finds in favor of the claimant for $1,000,000, the insurer will pay
Select one:
A. $0.
B. $500,000.
C. $1,000,000.
D. $1,500,000. - Answer ✔ B. $500,000.
The Auto Medical Payments Coverage endorsement to the business auto policy
provides coverage for
Select one:
A. Reasonable and necessary medical and funeral expenses incurred by a person
injured while occupying a covered auto.
B. Medical, rehabilitation, income loss, substitute services, and death benefits specified
by auto no-fault laws.
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