AINS 23 Full Practice Exam Questions with Correct Answers
Question 1:
Clarence entered into a contract bond that guarantees his insulation work will be free from
defects in materials and workmanship for a specified period of five years after completion of
the work. The type of bond used by Clarence is a
Answer:
Maintenance bond.
Question 2:
Which one of the following statements is correct with respect to ocean marine loss exposures?
Answer:
For cargo owners, the posibility of loss to the cargo exists either on board a vessel or on land
between the vessel and the cargo's point of origin or destination.
Many of the provisions in professional liability policies resemble those found in commercial
general liability policies. However, some of the provisions differ in key ways such as the
Use of a claims made trigger.
Question 3:
Which one of the following best describes the purpose served by transit insurance?
Shippers use it because their property may be damaged in circumstances under which a carrier
has no legal obligation to pay the shipper's loss.
If the Replacement Cost optional coverage of the Building and Personal Property Coverage
Form (BPP) is selected, tenants' improvements and betterments
Answer:
areValued at replacement cost if the tenant actually repairs or replaces them, at its own cost, as
soon as reasonably possible after the loss.
,Question 4:
Smith Electricians has a Commercial General Liability (CGL) Coverage Form with the following
limits:
$500,000 general aggregate
$500,000 products-completed operations aggregate
$250,000 personal and advertising injury
$250,000 each occurrence
$100,000 damage to premises rented to you
$10,000 medical expense
While installing new wiring at a building under construction, Smith Electricians accidentally
starts a fire that causes $400,000 damage to the building, but not to the wiring it was installing.
How much will Smith's CGL insurer pay?
Answer:
$250,000
Question 5:
An environmental insurance policy that covers the loss exposures of a contractor performing
environmental remediation services on contaminated sites is a(n)
Answer:
Contractors pollution liability policy
Question 6:
The Causes of Loss-Special Form provides coverage for which one of the following scenarios?
The melting of ice, sleet, or snow on the building or structure.
Which one of the following is the coinsurance basis under a Business Income Coverage Form
(BIC)?
Answer:
The projected net income and all operating expenses except for certain deductible items.
Question 7:
The condition of the Building and Person Property Coverage Form (BPP) that establishes a
method for the insurer and the insured to resolve disputes about the insured property's value
or amount of loss is referred to as the
Answer:
Appraisal condition.
, Question 8:
Which one of the following Commercial Crime Coverage Form insuring agreements provides
coverage on a full worldwide basis?
Answer:
Forgery or alteration
Question 9:
Pedestrian Wilma was injured as a result of a contractor's negligence when the contractor
failed to adequately warn the public of a hazard when paving a road. Any resulting liability
claim by Wilma against the contractor would be considered to have arisen from the
contractor's
Answer:
Premises and operations liability exposure.
Question 10:
Which one of the following statements is correct with respect to Coverage G-Barns,
Outbuildings and Other Farm Structures of the ISO farm program?
Answer:
Coverage G is used to insure all types of farm buildings and structures other than the dwelling
and private garages.
Question 11:
Which one of the following statements is correct with respect to the Causes of Loss-Basic Form?
Answer:
It excludes loss caused by earth movement, other than by sinkhole collapse.
Question 12:
Three exclusions apply only to the Computer Fraud insuring agreement. These include credit
card transactions, inventory shortages and
Answer:
Funds transfer fraud.
Question 13:
An insurer that writes Commercial General Liability (CGL) coverage develops a rate for which
one of the following?
Answer:
Each business classification the insurer is willing to write.
Question 1:
Clarence entered into a contract bond that guarantees his insulation work will be free from
defects in materials and workmanship for a specified period of five years after completion of
the work. The type of bond used by Clarence is a
Answer:
Maintenance bond.
Question 2:
Which one of the following statements is correct with respect to ocean marine loss exposures?
Answer:
For cargo owners, the posibility of loss to the cargo exists either on board a vessel or on land
between the vessel and the cargo's point of origin or destination.
Many of the provisions in professional liability policies resemble those found in commercial
general liability policies. However, some of the provisions differ in key ways such as the
Use of a claims made trigger.
Question 3:
Which one of the following best describes the purpose served by transit insurance?
Shippers use it because their property may be damaged in circumstances under which a carrier
has no legal obligation to pay the shipper's loss.
If the Replacement Cost optional coverage of the Building and Personal Property Coverage
Form (BPP) is selected, tenants' improvements and betterments
Answer:
areValued at replacement cost if the tenant actually repairs or replaces them, at its own cost, as
soon as reasonably possible after the loss.
,Question 4:
Smith Electricians has a Commercial General Liability (CGL) Coverage Form with the following
limits:
$500,000 general aggregate
$500,000 products-completed operations aggregate
$250,000 personal and advertising injury
$250,000 each occurrence
$100,000 damage to premises rented to you
$10,000 medical expense
While installing new wiring at a building under construction, Smith Electricians accidentally
starts a fire that causes $400,000 damage to the building, but not to the wiring it was installing.
How much will Smith's CGL insurer pay?
Answer:
$250,000
Question 5:
An environmental insurance policy that covers the loss exposures of a contractor performing
environmental remediation services on contaminated sites is a(n)
Answer:
Contractors pollution liability policy
Question 6:
The Causes of Loss-Special Form provides coverage for which one of the following scenarios?
The melting of ice, sleet, or snow on the building or structure.
Which one of the following is the coinsurance basis under a Business Income Coverage Form
(BIC)?
Answer:
The projected net income and all operating expenses except for certain deductible items.
Question 7:
The condition of the Building and Person Property Coverage Form (BPP) that establishes a
method for the insurer and the insured to resolve disputes about the insured property's value
or amount of loss is referred to as the
Answer:
Appraisal condition.
, Question 8:
Which one of the following Commercial Crime Coverage Form insuring agreements provides
coverage on a full worldwide basis?
Answer:
Forgery or alteration
Question 9:
Pedestrian Wilma was injured as a result of a contractor's negligence when the contractor
failed to adequately warn the public of a hazard when paving a road. Any resulting liability
claim by Wilma against the contractor would be considered to have arisen from the
contractor's
Answer:
Premises and operations liability exposure.
Question 10:
Which one of the following statements is correct with respect to Coverage G-Barns,
Outbuildings and Other Farm Structures of the ISO farm program?
Answer:
Coverage G is used to insure all types of farm buildings and structures other than the dwelling
and private garages.
Question 11:
Which one of the following statements is correct with respect to the Causes of Loss-Basic Form?
Answer:
It excludes loss caused by earth movement, other than by sinkhole collapse.
Question 12:
Three exclusions apply only to the Computer Fraud insuring agreement. These include credit
card transactions, inventory shortages and
Answer:
Funds transfer fraud.
Question 13:
An insurer that writes Commercial General Liability (CGL) coverage develops a rate for which
one of the following?
Answer:
Each business classification the insurer is willing to write.
