AINS103 Practice Exam Questions and Answers In property insurance, the term "Property in Transit" refers to which one of the following? - Correct Answers ✅Property while being transported by trucks, cars, buses, trains, airplanes, and ships.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.Upon entering a restaurant, a customer grasped a handrail the 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.A contractor is hired to install a new concrete sidewalk in front of a store. Several weeks after the sidewalk was installed, the concrete buckles and a passerby trips and falls on the buckled sidewalk. The passerby sues the contractor to recover medical expenses incurred due to the fall. This commercial liability is categorized as - Correct Answers ✅Completed operations liability.A carrier that is prevented by an accident from delivering the cargo aboard its ship may face an exposure called loss of 1 / 4
AINS103 Practice Exam Questions and Answers freight, which is - Correct Answers ✅The compensation the carrier receives for transporting cargo.The management of Maryland Marine Co. (MMC) must ensure that proper coverage is obtained for work- related injuries.The employee population of MMC is a mixture of full-time and part-time employees as well as some casual employees for one-time tasks. Much of MMC's work is done by independent contractors and temporary employees during peak seasons.Which one of the following statements about these persons is true? - Correct Answers ✅Many states workers compensation statutes exclude casual labor (temporary employees).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 virsuses.Meat Products Company (MPC) runs packing plants in three Midwest states. The company was in the news recently because of its labor practices. The Department of Labor (DOL) investigated complaints from five female employees that MPC discriminated against them. The DOL found the claim was true. The Immigration and Naturalization Service (INS) found that the company employed illegal immigrants and paid them less than the minimum wage. When this news became public, MPC's reputation was severely harmed. This 2 / 4
AINS103 Practice Exam Questions and Answers scenario illustrates which source of reputation risk - Correct Answers ✅Regulatory and legal compliance.Perils are an important aspect of property insurance. Which one of the following statements is correct with respect to perils? - Correct Answers ✅A peril is the actual means by which property is damaged or destroyed such as fire, lightning, windstorm, hail or theft.During a business interruption, some of the organizations expenses, called continuing expenses, will continue, and other expenses, called non-continuing expenses, will not continue. Which one of the following is an example of a continuing expense? - Correct Answers ✅Payroll of key employees.Which one of the following loss exposure exist when a business can be held legally liable for bodily injury or property damaged caused by their repair or contracting work? - 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. 3 / 4
AINS103 Practice Exam Questions and Answers Inland marine insurance is insurance that covers - Correct Answers ✅Many different classes of property that typically involve an element of transportation on land.Joe signs a contract with Home Builders to install the electrical wiring for a new home. He uses his own tools and follows the specifications in the contract. Joe is burned while installing the wiring. Does Home Builders' workers compensation policy cover Joe's injury? - Correct Answers ✅No, because Joe is not an employee of Home Builders.Cyber risk intellectual property loss exposures include - Correct Answers ✅Cyber extortion of trade secrets.As part of its assessment of its cyber risk, an organization should consider whether there are any intangible property exposures. Which one of the following would best be classified as an intangible property loss? - Correct Answers ✅The computer system is hacked and data including credit card numbers are stolen.Property insurance policies use the term "personal property" to refer to the - Correct Answers ✅Contents in and around a building.In business income insurance, the expenses that an organization would not have incurred if the business
- / 4