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AINS 103 Practice Test Questions and Answers Already Graded A+

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ains 103 practice test
ains 103 practice test questions and answers

Institution AINS 103
Course AINS 103

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AINS 103 Practice Test Questions
and Answers Already Graded A+

With advancements in technology, underwriting data is becoming increasingly abundant
and more reliable. These technological advancements changed underwriting in which
one of the following ways?

A. Insurers are seeking assistance from reinsurers.
B. Underwriters are spending less time cultivating relationships and trust with insureds.
C. More insurers are turning to automated systems.
D. Underwriters are spending more time collecting and evaluating data. - Answer- C.
More insurers are turning to automated systems.

Which one of the following lists the two distinct benefits of enterprise risk management
(ERM)?
Select one:

A. Compliance with legal requirements and compliance with regulatory requirements
B. Increased profitability and increased economic efficiency
C. Improved decision making and better communication
D. The embracing of risk and a spirit of cooperation - Answer- C. Improved decision
making and better communication

Which one of the following methods of data analytics can help insurers detect potential
claims fraud by identifying connections and relationships among claimants with similar
injuries?

A. Social network analysis
B. Process mining
C. Subrogation analysis
D. Algorithm analysis - Answer- A. Social network analysis

A social network analysis could help an insurer detect potential claims fraud by
identifying connections and relationships among claimants with similar injuries. Social
network analysis is the study of connections and relationships among people in a
network.

Automobile liability exposures can result from

A. Damage to or destruction of an owned vehicle.
B. Workers compensation laws.
C. Hiring or borrowing an automobile.

,D. Loss of use of an owned automobile. - Answer- C. Hiring or borrowing an automobile.

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

A. Loss or damage caused by computer viruses.
B. Theft of clothing items in their store.
C. Lightning damage to the computer system used for internet sales.
D. Fire damage to clothing items currently listed for sale online. - Answer- A. Loss or
damage caused by computer viruses.

Which one of the following statements is true regarding the Business Income (without
Extra Expense) Coverage Form?

A. It does not cover any extra expenses.
B. It covers extra expenses only for businesses that must continue their operations as
any cost.
C. It covers only extra expenses incurred within 48 hours of the loss.
D. It covers only extra expenses that reduce the business income loss. - Answer- D. It
covers only extra expenses that reduce the business income loss.

Dollar Donut Shop (DDS) is located in a shopping center with a number of other retail
businesses. One day a grease fire started at DDS, and spread to Tony's Restaurant
next door. Both locations were damaged and a number of individuals were injured
during the evacuation process. Assuming that DDS is found to be liable for the fire,
which one of the following would be covered under Coverage A of DDS' commercial
general liability (CGL) policy?

A. The slander suit for falsely accusing Tony of starting the fire
B. The property damage to DDS
C. The property damage to Tony's Restaurant
D. The burns suffered by a DDS employee - Answer- C. The property damage to Tony's
Restaurant

Injury arising out of which one of the following offenses could be covered under
Coverage B of the Commercial General Liability policy?

A. Vandalism
B. Breach of contract
C. Lawful prosecution
D. False arrest - Answer- D. False arrest

Coverage will apply under the liability insuring agreement of the Business Auto
Coverage Form (BACF) for bodily injury or property damage

,A. To a fellow employee.
B. Caused by an accident.
C. Intended by the insured.
D. Assumed by the insured. - Answer- B. Caused by an accident.

Shelton Industries is insured under a commercial property policy and an equipment
breakdown policy. The company has two claims while both policies are in force. The
first claim is for a furnace explosion and the second claim is for an explosion of unfired
pressure vessels. Which one of the following explains how these losses would be
covered under the policies?

A. Each loss would be covered under the commercial property policy only.
B. Each loss would be covered under the equipment breakdown policy only.
C. Neither policy provides coverage for any of the losses.
D. Each loss would be covered under both the commercial property policy and the
equipment breakdown policy. - Answer- A. Each loss would be covered under the
commercial property policy only.

Which one of the following types of contractors are usually ineligible for coverage under
a businessowners policy (BOP)?

A. Painting contractors
B. General contractors
C. Plumbers
D. Carpenters - Answer- B. General contractors

The Neopolitan is insured under a businessowners policy (BOP) for both building and
business personal property. Which one of the following would be covered under the
definition of a building under The Neopolitan's BOP?

A. The security fence that surrounds the building
B. The land that the building sits on
C. Permanently installed fixtures and improvements paid for by tenants
D. The outdoor lighting fixtures - Answer- D. The outdoor lighting fixtures

Wilson LLC owns an apartment building insured under a businessowners policy (BOP).
Which one of the following would be an insured under Business Liability Coverage of
Wilson LLC's BOP?

A. The real estate manager who manages the building and grounds would be an
insured under Business Liability Coverage of Wilson LLC's BOP while removing snow
from the entrance area.
B. The wife of one of the controlling members would be an insured under Business
Liability Coverage of Wilson LLC's BOP while she is volunteering at a nearby hospital.
C. The disgruntled tenant who started a fire in the building would be an insured under
Business Liability Coverage of Wilson LLC's BOP.

, D. The employee of a painting contractor hired to paint several apartments in the
building would be an insured under Business Liability Coverage of Wilson LLC's BOP. -
Answer- A. The real estate manager who manages the building and grounds would be
an insured under Business Liability Coverage of Wilson LLC's BOP while removing
snow from the entrance area.

The extent of an organization's product of human intelligence that has economic value
refers to which one of the following?

A. Real property
B. Personal property
C. Business income
D. Intellectual property - Answer- D. Intellectual property

The commercial property coverage part of a commercial package policy contains one or
more commercial property coverage forms. Each coverage form typically includes all of
the following, EXCEPT:

A. Definitions and provisions
B. What property is covered and property that is not covered
C. An insuring agreement
D. A range of covered peril - Answer- D. A range of covered peril

Do you think the causes of business income losses associated with property exposures
are typically the same as or different from those for physical damage losses?

A. Different
B. Same - Answer- B. Same

The causes of business income losses associated with property exposures are typically
the same as those for physical damage losses. Thus, a property loss caused by fire,
theft, windstorm, flood, earthquake, terrorism, vandalism, or war may also cause a
business income loss.

Continuing expenses - Answer- Expenses that continue to be incurred during a
business interruption

Extra expenses - Answer- Expenses, in addition to ordinary expenses, that an
organization incurs to mitigate the effects of a business interruption.

Premises and operations liability - Answer- The premises and operations liability
exposure is the possibility that an organization will be held liable because of bodily
injury or property damage that either occurs on the organization's premises or results
from the organization's ongoing (as opposed to completed) operations.

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