AINS 103: Practice Questions with
Complete Solutions (Latest 2025) For most businesses, which peril poses the greatest risk of a large or total property loss? - Correct Answers ✅For most businesses, fire poses the greatest risk of a large or total property loss.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? - Correct Answers ✅Cost to rent temporary office space.An electrical contractor was hired to install a new 100-amp fuse box in the Smith's home. During installation, the contractor inadvertently left a small screwdriver in a duct space behind the panel. Three weeks later, the screwdriver caused an electrical short which led to a fire. Which one of the following loss exposures best categorizes the electrical contractor's legal liability exposure for the fire damages? - Correct Answers ✅Completed operations liability.Upon entering a restaurant, a customer grasped a handrail that 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? - Correct Answers ✅Premises and operations liability. 1 / 4
AINS 103: Practice Questions with
Complete Solutions (Latest 2025)
Inland marine insurance is insurance that covers: - Correct
Answers ✅Many different classes of property that typically involve an element of transportation on land.Workers compensation benefits include which one of the following? - Correct Answers ✅Rehabilitation benefits.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...? - Correct Answers ✅Reputation.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: - Correct Answers ✅Loss
or damage caused by computer viruses.Sally is a commercial property claims adjuster. When she is 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 amount of coverage provided. 2 / 4
AINS 103: Practice Questions with
Complete Solutions (Latest 2025) Which one of the following components of the commercial property part will provide Sally with this information? - Correct Answers ✅The commercial property declarations page contains information such as a description of the property insured, the kinds and amounts of coverage provided, and any optional coverages, among other information.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? - Correct Answers ✅$275,000. $310,000 - $1,500 = $308,500, which exceeds the BPP limit. The insurer will pay $275,000. The deductible is subtracted from the loss, not the limit.Which one of the following is one of the covered causes of loss in the commercial property policy Causes of Loss—Basic form? - Correct Answers ✅Explosion is a covered cause of loss under the basic form. All the others are additional causes of loss covered by the broad form (and they are also covered under the special form).Which one of the following is correct with respect to the Increased Cost of Construction additional coverage of the Building and Personal Property Coverage Form (BPP)? - Correct Answers ✅It provides a small amount of insurance 3 / 4
AINS 103: Practice Questions with
Complete Solutions (Latest 2025) to cover the increased cost to comply with ordinances or laws regulating the repair, rebuilding, or replacement of covered buildings.Which one of the following would be considered an extra expense under the Business Income (and Extra Expense) Coverage Form of the commercial package policy? - Correct Answers ✅The increased cost of rent at a temporary location.Dooley's Restaurant is insured under a commercial package policy (CPP) with the Business Income (with Extra Expense) Coverage Form. The business suffered a $400,000 loss of business income when it was forced to suspend operations after flood waters damaged the basement and first floor of the restaurant. Which one of the following is an acceptable reason for the CPP insurer to deny the business income claim? - Correct Answers ✅The policy's covered causes of loss did not include flood.Which one of the following would be covered under the Extra Expense insuring agreement of the Business Income (and Extra Expense) Coverage Form? - Correct Answers ✅Costs to move to a temporary location.Richard's Clothing Store has a $500,000 Business Income (and Extra Expense) Coverage Form on which there is an 80 percent coinsurance clause. A fire swept through the store.
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