Exam (elaborations)
AINS 103: CHAPTER #1 ASSESSMENT TEST QUESTIONS AND ANSWERS
- Course
- Institution
AINS 103: CHAPTER #1 ASSESSMENT TEST QUESTIONS AND ANSWERS
[Show more]
Content preview
AINS 103: CHAPTER #1 ASSESSMENTTEST QUESTIONS AND ANSWERS
A Commercial Property Loss Exposure is: - Answer-Is any condition that presents the
possibility that an organization will sustain a loss resulting from damage or theft of its
property.
Real Property (Realty): - Answer-Tangible property consisting of land, all structures
permanently attached to the land, (including fixtures permanently attached) and
whatever is growing on the land.
Personal Property: - Answer-Includes moveable items owned by a business, such as
supplies, furniture, computers, machinery, tools, and some vehicles, (forklifts.)
Categories of Commercial Property: - Answer-Buildings, personal property contained in
buildings, money and securities, vehicles and watercraft, property in the possession of
others, property in transit, floating property.
Significant perils which can result in catastrophic loss: - Answer-Fire, Theft, Windstorm,
Flood, Earthquake, Terrorism, Vandalism, and War.
For most businesses, what type of peril poses the greatest risk of a large or total
property loss? - Answer-Fire.
Almost all businesses face commercial property loss exposures because they own or
have a legal interest in what 2 kinds of property? - Answer-Real property, and personal
property.
Joanne owns a construction business. What kind of property are the company forklifts
considered? - Answer-Personal property.
Financial consequences of loss; Reduced Value: - Answer-When a loss occurs, the
property's value can be reduced or eliminated.
Financial consequences of loss; Lost Income: - Answer-A business may not be able to
use the property in question until it has been repaired, restored or replaced.
Financial consequences of loss; Extra Expenses: - Answer-Businesses sometimes have
to pay additional costs to keep operating after a loss.
Key parts of calculating a business income loss are: - Answer-Determining the lost
revenue and any continuing and extra expenses the business incurred during the period
of interruption.
, Continuing Expenses: - Answer-Expenses that continue to be incurred during a
business interruption, such as payroll of key employees, debt repayments, taxes, and
insurance premiums.
Extra Expenses: - Answer-Expenses that are paid in addition to continuing expenses for
the purpose of mitigating the effects of a business interruption, such as relocation,
utilities, payroll, and equipment.
T/F: The causes of business income losses associated with property exposures are
typically the same as those for physical damage losses. - Answer-True.
When property that a business uses to generate income becomes damaged or stolen,
what kind of loss is typically suffered? - Answer-Business income loss.
What kinds of expenses constitute continuing expenses? - Answer-Payroll of key
employees, debt repayments, property and payroll taxes, rent or lease payments, and
insurance premiums.
What are the key parts of calculating a business income loss? - Answer-Determining the
loss revenue and any continuing and extra expenses the business incurred during the
period of interruption.
What kinds of expenses constitute extra expenses? - Answer-Relocation, utilities,
payroll, equipment.
What are the potential consequences for an organization if a court rules that it is
responsible for injury, harm, or damage to another party? - Answer-Damages, Defense
costs, and reputational harm.
Damages: - Answer-The court may require the liable organization to pay damages to
the injured/harmed party.
Defense costs: - Answer-The liable organization may have to pay legal defense costs
and the cost of investigating the claim.
Reputational Harm: - Answer-The organization may suffer harm to its reputation as a
result of accusations made against it, whether or not it is found to be liable.
Premises and operations liability exposure: - Answer-The possibility that an organization
will be held liable because of bodily injury or property damage caused by an accident
that either occurs on the organization's premises or arises out of the organization's
ongoing (as opposed to completed) operations on or off those premises.
Products and completed operations liability exposure: - Answer-The possibility that an
organization will be held liable because of bodily injury or property damage caused
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller biggdreamer. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $14.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
81298 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now