AINS 103 Test Exam Questions and Answers Workers compensation benefits include which one of the following? - Correct Answers ✅Rehabilitation benefits 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.Which one of the following supply chain exposures can a business mitigate by carefully wording contracts and diversifying suppliers? - Correct Answers ✅Loss of supply due to external events 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: - Correct Answers ✅A range of
covered peril Which one of the following statements best describes the Causes of Loss—Special Form? - Correct Answers ✅The Special Form provides coverage for direct physical losses other than those that are specifically excluded.Which one of the following best describes real property? - Correct Answers ✅Tangible property that includes land, 1 / 4
AINS 103 Test Exam Questions and Answers structures permanently attached to the land, and whatever is growing on the land.During a business interruption, some of the organization's expenses, called continuing expenses, will continue, and other expenses, called noncontinuing expenses, will not continue. Which one of the following is an example of a continuing expense? - Correct Answers ✅Payroll of key employees A vehicle owner had a tire store install four new wheels and tires on the vehicle. On the way home from the store, one of the wheels came off, causing the vehicle to accidentally run off the road and strike a tree. The vehicle owner sued the tire store for failing to properly tighten the lug nuts on the vehicle. The loss exposure faced by the tire store in this case is known as - Correct Answers ✅Completed operations liability.Which one of the following entities would likely have the greatest completed operations loss exposure? - Correct Answers ✅Paul the plumber 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 Answers ✅The compensation the carrier receives for transporting cargo. 2 / 4
AINS 103 Test Exam Questions and Answers Which one of the following statements is correct with respect to the Building and Personal Property Coverage Form (BPP) deductible? - Correct Answers ✅If an occurrence involves a loss that affects more than one category of covered property and a separate limit of insurance applies to each category, losses to all categories are totaled and the deductible applied to that total amount.Which one of the following statements is correct with respect to the Building and Personal Property Coverage Form (BPP)? - Correct Answers ✅Due to coverage extensions, it is possible for the total payment for one loss to exceed the policy limit.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. 3 / 4
AINS 103 Test Exam Questions and Answers Lucy's Bakery is insured under a commercial package policy with the Business Income (and Extra Expense) Coverage Form. A fire loss caused significant damage to the building.When Lucy learned that it would take 9 months to repair the building, she decided to temporarily relocate to a nearby rental location. All of the following would be considered covered extra expenses under the Business Income (and
Extra Expense) Coverage Form, EXCEPT: - Correct Answers
✅The salary of the assistant baker and cake decorator 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.Richard's Clothing Store estimates that its net income plus all operating expenses for the policy period would have been $1,875,000. The estimated business income loss is $300,000.How much will the insurer pay? - Correct Answers
✅$100,000
Suzanne is a commercial lines underwriter. Which one of the following components of the general liability coverage forms would she use to tailor the form to meet the specialized needs of an insured? - Correct Answers ✅Endorsements Under Coverage A of the commercial general liability coverage form (CGL), property damage would include all of
the following, EXCEPT: - Correct Answers ✅Infringement of
copyright
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