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AINS103 Practice Questions, AINS
103 Questions and Answers Latest
2026
In property insurance, the term "Property in Transit"
refers to which one of the following? Ans: 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? Ans: 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? Ans:
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 Ans:
Completed operations liability.
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, 2 | Page
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 Ans: 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? Ans:
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 Ans: 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 scenario illustrates
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which source of reputation risk Ans: Regulatory and legal
compliance.
Perils are an important aspect of property insurance.
Which one of the following statements is correct with
respect to perils? Ans: 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? Ans: 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? Ans: Completed operations liability.
Which one of the following entities would likely have the
greatest completed operations loss exposure? Ans: Paul
the plumber.
Inland marine insurance is insurance that covers Ans:
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'
© 2025 All rights reserved
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workers compensation policy cover Joe's injury? Ans: No,
because Joe is not an employee of Home Builders.
Cyber risk intellectual property loss exposures include
Ans: 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? Ans: 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 Ans: Contents in and around a
building.
In business income insurance, the expenses that an
organization would not have incurred if the business
interruption have not occurred are called Ans: Extra
expenses.
Radley Contracting Company is installing new signage on
the front of a building. George, a passerby walking near
the building is injured when a Radley employee
accidentally drops a tool from a crane. George likely has
the ability to assert which one the following types of
claim? Ans: Premises and operations liability.
John purchased a new lawnmower two years ago. After
significant use, the lawnmower needed servicing. A
repairman sharpened the blade but he failed to reattach
it properly to the lawnmower. When John was using the
© 2025 All rights reserved
AINS103 Practice Questions, AINS
103 Questions and Answers Latest
2026
In property insurance, the term "Property in Transit"
refers to which one of the following? Ans: 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? Ans: 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? Ans:
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 Ans:
Completed operations liability.
© 2025 All rights reserved
, 2 | Page
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 Ans: 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? Ans:
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 Ans: 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 scenario illustrates
© 2025 All rights reserved
, 3 | Page
which source of reputation risk Ans: Regulatory and legal
compliance.
Perils are an important aspect of property insurance.
Which one of the following statements is correct with
respect to perils? Ans: 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? Ans: 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? Ans: Completed operations liability.
Which one of the following entities would likely have the
greatest completed operations loss exposure? Ans: Paul
the plumber.
Inland marine insurance is insurance that covers Ans:
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'
© 2025 All rights reserved
, 4 | Page
workers compensation policy cover Joe's injury? Ans: No,
because Joe is not an employee of Home Builders.
Cyber risk intellectual property loss exposures include
Ans: 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? Ans: 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 Ans: Contents in and around a
building.
In business income insurance, the expenses that an
organization would not have incurred if the business
interruption have not occurred are called Ans: Extra
expenses.
Radley Contracting Company is installing new signage on
the front of a building. George, a passerby walking near
the building is injured when a Radley employee
accidentally drops a tool from a crane. George likely has
the ability to assert which one the following types of
claim? Ans: Premises and operations liability.
John purchased a new lawnmower two years ago. After
significant use, the lawnmower needed servicing. A
repairman sharpened the blade but he failed to reattach
it properly to the lawnmower. When John was using the
© 2025 All rights reserved
