AINS 103 LATEST EXAMS SCRIPT QUESTIONS AND
ANSWERS RATED A+
✔✔Hank is a new commercial insurance producer. He is walking down the main street
of Springfield trying to determine which businesses might be eligible for the
businessowners policy (BOP) and which would not be eligible. Which one of the
following main street businesses would be ineligible for BOP coverage? - ✔✔D.
Springfield Bank
✔✔Which one of the following statements about the BOP is true? - ✔✔A. It is designed
for small to mid-sized business.
✔✔Springer's Attire is insured under an unendorsed businessowners policy (BOP). The
building suffered significant damage when it was struck by lightning. Building codes
require that the building must be brought into compliance with current code when the
repair work is done. Bringing the building into compliance with current codes will
increase the cost of the repair by $50,000. Which one of the following correctly explains
how Springer's Attire's BOP will respond to the loss? - ✔✔B. The additional $50,000
would not be fully covered. The Ordinance or Law exclusion eliminates coverage for the
cost to upgrade the building to current building codes and ordinances after a loss.
✔✔Rose's Flower Shop has its building and business personal property insured under a
businessowners policy (BOP). The building was struck by lightning and the resulting fire
caused significant damage to both the building and personal property. Which one of the
following would be excluded under the BOP? - ✔✔C. The cost of upgrades due to local
ordinances
✔✔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? - ✔✔D. The outdoor lighting
fixtures
, ✔✔The medical expense coverage under Business Section II-Liability Coverage of the
ISO businessowners policy (BOP) would cover small and reasonable medical claims for
which one of the following? - ✔✔A. Volunteer workers at the insured organization
✔✔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? - ✔✔B. More insurers are turning to automated
systems.
✔✔In an effort to control its loss exposures, Furlong Distributing uses a network of
objects that transmit data to each other and to central hubs through the internet. This
network is known as - ✔✔A. The Internet of Things.
✔✔Which one of the following is the first step in the enterprise risk management (ERM)
process? - ✔✔A. Scan the environment
✔✔Which one of the following lists the two distinct benefits of enterprise risk
management (ERM)? - ✔✔A. Improved decision making and better communication
✔✔Anita is the claims manager for the Mid-Atlantic region. She knows that the longer
that liability claims stay open, the higher the final settlement cost. Anita wants to use
data analytics to help her predict the final settlement amount of slip and falls claims that
remain open for more one year. She would also like to see how much the amount varies
in the different geographic areas within her territory. Which one of the following methods
would help Anita predict the cost of the claims with those attributes? - ✔✔A. Cluster
analysis
✔✔Which one of the following is the main source of the data used in the process mining
of the claims process? - ✔✔D. Claim activity logs
✔✔While performing duties for the business, all of the following would be an insured
under Business Liability Coverage of a partnership's businessowners policy (BOP),
EXCEPT: - ✔✔D. All executive officers of an LLC
✔✔Business income insurance covers which one of the following types of losses that
could result from a fire? - ✔✔A. The extra expenses for renting a temporary office
✔✔Joshua owns a mid-sized contracting company and was considering a job on a
multi-million dollar project. Due to the size of the project, Joshua had difficulty
determining the maximum possible loss. Considering the size of the project, Joshua
should do which one of the following? - ✔✔D. Purchase excess limits provided by an
excess or umbrella liability policy.
ANSWERS RATED A+
✔✔Hank is a new commercial insurance producer. He is walking down the main street
of Springfield trying to determine which businesses might be eligible for the
businessowners policy (BOP) and which would not be eligible. Which one of the
following main street businesses would be ineligible for BOP coverage? - ✔✔D.
Springfield Bank
✔✔Which one of the following statements about the BOP is true? - ✔✔A. It is designed
for small to mid-sized business.
✔✔Springer's Attire is insured under an unendorsed businessowners policy (BOP). The
building suffered significant damage when it was struck by lightning. Building codes
require that the building must be brought into compliance with current code when the
repair work is done. Bringing the building into compliance with current codes will
increase the cost of the repair by $50,000. Which one of the following correctly explains
how Springer's Attire's BOP will respond to the loss? - ✔✔B. The additional $50,000
would not be fully covered. The Ordinance or Law exclusion eliminates coverage for the
cost to upgrade the building to current building codes and ordinances after a loss.
✔✔Rose's Flower Shop has its building and business personal property insured under a
businessowners policy (BOP). The building was struck by lightning and the resulting fire
caused significant damage to both the building and personal property. Which one of the
following would be excluded under the BOP? - ✔✔C. The cost of upgrades due to local
ordinances
✔✔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? - ✔✔D. The outdoor lighting
fixtures
, ✔✔The medical expense coverage under Business Section II-Liability Coverage of the
ISO businessowners policy (BOP) would cover small and reasonable medical claims for
which one of the following? - ✔✔A. Volunteer workers at the insured organization
✔✔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? - ✔✔B. More insurers are turning to automated
systems.
✔✔In an effort to control its loss exposures, Furlong Distributing uses a network of
objects that transmit data to each other and to central hubs through the internet. This
network is known as - ✔✔A. The Internet of Things.
✔✔Which one of the following is the first step in the enterprise risk management (ERM)
process? - ✔✔A. Scan the environment
✔✔Which one of the following lists the two distinct benefits of enterprise risk
management (ERM)? - ✔✔A. Improved decision making and better communication
✔✔Anita is the claims manager for the Mid-Atlantic region. She knows that the longer
that liability claims stay open, the higher the final settlement cost. Anita wants to use
data analytics to help her predict the final settlement amount of slip and falls claims that
remain open for more one year. She would also like to see how much the amount varies
in the different geographic areas within her territory. Which one of the following methods
would help Anita predict the cost of the claims with those attributes? - ✔✔A. Cluster
analysis
✔✔Which one of the following is the main source of the data used in the process mining
of the claims process? - ✔✔D. Claim activity logs
✔✔While performing duties for the business, all of the following would be an insured
under Business Liability Coverage of a partnership's businessowners policy (BOP),
EXCEPT: - ✔✔D. All executive officers of an LLC
✔✔Business income insurance covers which one of the following types of losses that
could result from a fire? - ✔✔A. The extra expenses for renting a temporary office
✔✔Joshua owns a mid-sized contracting company and was considering a job on a
multi-million dollar project. Due to the size of the project, Joshua had difficulty
determining the maximum possible loss. Considering the size of the project, Joshua
should do which one of the following? - ✔✔D. Purchase excess limits provided by an
excess or umbrella liability policy.
