AINS 103 Exploring Commercial Insurance
Latest Update 2024-2025 Actual Exam Questions
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A carrier is prevented from delivering cargo aboard its ship due to an accident that
occurred while at sea. One of the losses the carrier may face is loss of freight. Loss of
freight refers to which one of the following? - CORRECT ANSWER: D. The
compensation the carrier receives for transporting cargo.
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 - CORRECT ANSWER: B. The
compensation the carrier receives for transporting cargo.
A company owns land that is used as a softball diamond and recreational park for
hosting employee picnics. Once a year the company also allows a non-profit
organization to hold a softball game on these premises. During this year's softball game,
the director of the non-profit was injured when a softball hit him in the head. He asked
the company that owns the land to pay for his trip to the emergency room. The
company's unendorsed Commercial General Liability policy - CORRECT ANSWER: D.
Does not cover the director's injuries sustained because they happened during an
athletic event.
A private company posted a video on the internet introducing a new product. The music
used in the video was from a copyrighted song. When the company sought coverage
under Part B of their Commercial General Liability (CGL) Coverage Form after a claim
was filed against them for damages, coverage will most likely be excluded based on
which one of the following exclusions? - CORRECT ANSWER: B. Coverage for
infringement of copyright, patent, trademarks, or trade secret are excluded unless it
occurs in an advertisement exclusion
An animal damaged the interior of an insured's automobile while it was parked with the
windows down. Which one of the following types of physical damage coverage under
the Business Auto Coverage Form (BACF) would cover this loss? - CORRECT
ANSWER: Comprehensive
, An email was sent to a company's employees containing a harmful attachment. Several
employees opened the attachment which allowed hackers to obtain customer contact
information. This cyber risk loss is - CORRECT ANSWER: D. Damage to intangible
property.
An insured keeps his truck in a garage. A deer gets trapped in the garage and, in an
attempt to escape, climbs on top of the truck, breaking the windshield and causing
several dents in the hood. The insured's Business Auto Coverage Form (BACF)
provides physical damage coverage for specified causes of loss with a $100 deductible
and collision with a $250 deductible. It will cost the insured $750 to replace the broken
windshield and $1,200 to repair the dents. How much, if anything, will the business auto
insurer pay for this loss? - CORRECT ANSWER: $0
Anita is the claims manager for the Mid-Atlantic region. She knows that the longer that
liability claims stay open, the higher the final settlement cost. Anita wants to use data
analytics to help her predict the final settlement amount of slip and falls claims that
remain open for more one year. She would also like to see how much the amount varies
in the different geographic areas within her territory. Which one of the following methods
would help Anita predict the cost of the claims with those attributes? - CORRECT
ANSWER: A. Cluster analysis
Austin cut his finger while working at a jobsite for Walsh Builders. He had to go to a
hospital, where he received 5 stitches and a tetanus vaccine. When he received the
hospital bill for $990, Austin made a claim under Coverage C—Medical Payments of
Walsh Builders' CGL policy. Which one of the following reasons would the CGL insurer
use for denying Austin's claim? - CORRECT ANSWER: A. He is entitled to workers
compensation benefits.
Ava is Regional Manager for Goshen Mutual. She is looking over the past auto losses
for Disposal Inc. She is tracking the experience of their drivers, the location of
accidents, and the severity of the injury to their employees and the public. She is trying
to determine the frequency and severity of the auto exposure for Disposal and to use
the future models to suggest where Disposal allocates their loss prevention resources.
Which one of the following forms of analysis is Ava using to help Disposal address their
auto exposure? - CORRECT ANSWER: C. Predictive Modeling
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
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