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AINS 23 MASTER SET EXAM QUESTIONS AND ANSWERS
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AINS 23 MASTER SET EXAM QUESTIONS AND ANSWERS
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AINS 23 MASTER SET EXAMQUESTIONS AND ANSWERS
For most businesses, which one of the following is the peril that poses the greatest risk
of a large or total property loss?
Select one:
A. Fire
B. Windstorm
C. Flood
D. Earthquake - Answer-A
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?
Select one:
A. Payroll of key employees
B. Cost to rent temporary office space
C. Insurance premiums
D. Debt repayments - Answer-B
Fancy Dress Shop is a small specialty clothing boutique for women. Liability claims
against Fancy Dress Shop would most likely arise from its
Select one:
A. Premises and operations exposure.
B. Products and completed operations exposure.
C. Workers compensation exposure.
D. Advertising exposure. - Answer-A
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. An operations liability exposure.
B. A completed operations liability exposure.
C. A products liability exposure.
D. A premises liability exposure. - Answer-B
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 cost of disposing of undeliverable goods.
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 compensation the carrier receives for transporting cargo. - Answer-D
, To be covered under a workers compensation statute, an injury or disease (in most
states) must meet which one of the following requirements?
Select one:
A. Arise out of employees' job-related injuries and diseases
B. Occur away from the regular work premises
C. Result from the employer's negligence
D. Result in total disability - Answer-A
An individual owns a web-based business. All sales records and contact data are
maintained on the same network server as the website. Someone hacks into the server
and deletes all of the saved data. Which one of the following types of loss is this?
Select one:
A. Personal injury
B. Contingent business income
C. Intangible property
D. Tangible property - Answer-C
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, and a company official bribed a key regulator to get
the drug approved. These revelations led to a sharp decline in sales of all of 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
Select one:
A. Patents.
B. Reputation.
C. Internal security.
D. Intellectual property. - Answer-B
NH Manufacturing insures its building and personal property under the commercial
property coverage part of a commercial package policy (CPP). During a blizzard, a
portion of the building's roof collapsed from the weight of snow. The risk manager pulled
out the CPP to make sure that the building was covered for this type of loss. Which one
of the following components of the commercial property coverage part would provide
the risk manager with information on the covered perils?
Select one:
A. Commercial property declarations
B. Causes of loss form
C. Commercial property conditions
D. Building and personal property coverage form - Answer-B
Cameron has a Commercial Package Policy (CPP) that has a Building and Personal
Property Coverage Form (BPP) with a Causes of Loss - Broad Form covering his
building with a $750,000 limit. A tropical storm struck Cameron's building and the strong
winds tore most of the shingles from the building's roof and shattered multiple windows
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