Exam (elaborations)
AINS103 Practice Questions, AINS 103/513 Q’s and A’s
AINS103 Practice Questions, AINS 103/513 Q’s and A’s
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AINS103 Practice Questions, AINS103/513 Q’s and A’s
In property insurance, the term "Property in Transit" refers to which one of
the following? - -Property while being transported by trucks, cars, buses,
trains, airplanes, and ships.
-Extra expenses are expenses, in addition to ordinary expenses, that an
organization incurs to mitigate the effects of a business interruption. Which
one of the following is an example of an extra expense? - -Cost to rent
temporary office space.
-Upon entering a restaurant, a customer grasped a handrail the broke off,
causing the customer to fall and break his wrist. This is an example of which
one of the following types of commercial general liability loss? - -Premises
and operations liability.
-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 is categorized as - -Completed operations liability.
-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 - -The
compensation the carrier receives for transporting cargo.
-The management of Maryland Marine Co. (MMC) must ensure that proper
coverage is obtained for work- related injuries. The employee population of
MMC is a mixture of full-time and part-time employees as well as some
casual employees for one-time tasks. Much of MMC's work is done by
independent contractors and temporary employees during peak seasons.
Which one of the following statements about these persons is true? - -Many
states workers compensation statutes exclude casual labor (temporary
employees).
-When a clothing manufacturer decides to expand the sale of its clothing
line by offering internet purchases, it creates new exposures not otherwise
covered, or not fully covered, by a traditional policy. These include - -Loss or
damage caused by computer virsuses.
-Meat Products Company (MPC) runs packing plants in three Midwest states.
The company was in the news recently because of its labor practices. The
Department of Labor (DOL) investigated complaints from five female
,employees that MPC discriminated against them. The DOL found the claim
was true. The Immigration and Naturalization Service (INS) found that the
company employed illegal immigrants and paid them less than the minimum
wage. When this news became public, MPC's reputation was severely
harmed. This scenario illustrates which source of reputation risk - -
Regulatory and legal compliance.
-Perils are an important aspect of property insurance. Which one of the
following statements is correct with respect to perils? - -A peril is the actual
means by which property is damaged or destroyed such as fire, lightning,
windstorm, hail or theft.
-During a business interruption, some of the organizations expenses, called
continuing expenses, will continue, and other expenses, called non-
continuing expenses, will not continue. Which one of the following is an
example of a continuing expense? - -Payroll of key employees.
-Which one of the following loss exposure exist when a business can be held
legally liable for bodily injury or property damaged caused by their repair or
contracting work? - -Completed operations liability.
-Which one of the following entities would likely have the greatest
completed operations loss exposure? - -Paul the plumber.
-Inland marine insurance is insurance that covers - -Many different classes
of property that typically involve an element of transportation on land.
-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? - -No, because Joe is not an
employee of Home Builders.
-Cyber risk intellectual property loss exposures include - -Cyber extortion of
trade secrets.
-As part of its assessment of its cyber risk, an organization should consider
whether there are any intangible property exposures. Which one of the
following would best be classified as an intangible property loss? - -The
computer system is hacked and data including credit card numbers are
stolen.
-Property insurance policies use the term "personal property" to refer to the
- -Contents in and around a building.
, -In business income insurance, the expenses that an organization would not
have incurred if the business interruption have not occurred are called - -
Extra expenses.
-Radley Contracting Company is installing new signage on the front of a
building. George, a passerby walking near the building is injured when a
Radley employee accidentally drops a tool from a crane. George likely has
the ability to assert which one the following types of claim? - -Premises and
operations liability.
-John purchased a new lawnmower two years ago. After significant use, the
lawnmower needed servicing. A repairman sharpened the blade but he failed
to reattach it properly to the lawnmower. When John was using the
lawnmower, the blade flew off and seriously injured John's daughter. From
the standpoint of a commercial liability loss for the repair shop, this is an
example of - -Completed operations liability.
-Automobile liability exposures can result from - -Hiring or borrowing an
automobile.
-Workers compensation benefits include which one of the following? - -
Rehabilitation Benefits.
-The unauthorized intrusion into a company's computer network resulting in
damage to intellectual property is best classified as which one of the
following types of cyber liability exposures? - -Intangible property.
-An email was sent to a company's employee containing a harmful
attachment. Several employees opened the attachment which allowed
hackers to obtain customer contact information. This cyber risk loss is - -
Damage to intangible property.
-Which one of the following best describes real property? - -Tangible
property that include land, structures permanently attached to the land, and
whatever is growing on the land.
-Which one of the following is an example of injury or damage arising from
an occurrence that would be covered by the products and completed
operations liability portion of the Commercial General Liability (CGL)
Coverage Form? - -A defective gas range manufactured by the insured
explodes causing injury.
-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 - -A completed operations liability exposure.
-To be covered under a workers compensation statute, an injury or disease
(in most states) must meet which one of the following requirements? - -Arise
out of employees job-related injuries and diseases.
-Which one of the following supply chain exposures can a business mitigate
by carefully wording contracts and diversifying suppliers? - -Loss of supply
due to external events.
-Bio-Pharma was a highly regarded pharmaceutical company. That changed
last year when it was revealed that Bio-Pharma researchers had fabricated
test results of the company's new hypertension drug, a company official
bribed a key regulator to get the drug approved. These revelations led to a
sharp decline in sales of all Bio-Pharma's drugs, a sharp decline in net
income, and a decline in Bio-Pharma's stock price. This scenario clearly
indicates the value of a corporation's - -Reputation.
-Sally is a commercial property claims adjuster. When she first assigned a
claim, she reviews the commercial property part of the policy to make sure
that the property that suffered the loss matches the description of the
property insured. She also reviews the kinds and amounts of coverage
provided. Which of the following components of the commercial property
part will provide Sally with this information? - -Commercial property
declarations page.
-Billy owns a baseball souvenir store in Cooperstown, NY. He insured his
store under a Building and Personal Property Coverage Form (BPP) with a
$275,000 limit and a $1,500 deductible. A large fire in the store caused
significant damage amounting to $310,000 in covered damages. How much
would Billy's insurer pay under his BPP? - -$275,000.
-Which one of the following is one of the covered causes of loss in the
commercial property policy Causes of Loss - Basic Form? - -Explosion.
-Which one of the following statements about Inflation Guard optional
coverage of the Building and Personal Property Coverage Form (BPP) is true?
- -It automatically increases the limit of insurance by the percentage of
annual increase shown in the declarations.
-Which one of the following would be covered under the Extra Expense
insuring agreement of the Business Income (and Extra Expense) Coverage
Form? - -Costs to move to a temporary location.
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