AINS 103 Questions with CORRECT Answers

AINS 103 Questions with CORRECT Answers

Question:
In property insurance, the term "Property in Transit" refers to which one of the
following?
Answer:
Property while being transported by trucks, cars, buses, trains, airplanes, and ships.


Question:
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?
Answer:
Cost to rent temporary office space.


Question:
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?
Answer:
Premises and operations liability.


Question:
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
Answer:
The compensation the carrier receives for transporting cargo.


Question:
The management of Maryland Marine Co. (MMC) must ensure that proper coverage is
obtained for workrelated 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?
Answer:
Many states workers compensation statutes exclude casual labor (temporary
employees).

,Question:
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
Answer:
Loss or damage caused by computer virsuses.


Question:
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 which source of reputation risk
Answer:
Regulatory and legal compliance.


Question:
Perils are an important aspect of property insurance. Which one of the following
statements is correct with respect to perils?
Answer:
A peril is the actual means by which property is damaged or destroyed such as fire,
lightning, windstorm, hail or theft.


Question:
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?
Answer:
Payroll of key employees.


Question:
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?
Answer:
Completed operations liability.

,Question:
Which one of the following entities would likely have the greatest completed operations
loss exposure?
Answer:
Paul the plumber.


Question:
Inland marine insurance is insurance that covers
Answer:
Many different classes of property that typically involve an element of transportation on
land.


Question:
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?
Answer:
No, because Joe is not an employee of Home Builders.


Question:
Cyber risk intellectual property loss exposures include
Answer:
Cyber extortion of trade secrets.


Question:
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?
Answer:
The computer system is hacked and data including credit card numbers are stolen.


Question:
In business income insurance, the expenses that an organization would not have
incurred if the business interruption have not occurred are called
Answer:
Extra expenses.

, Question:
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?
Answer:
Premises and operations liability.


Question:
Workers compensation benefits include which one of the following?
Answer:
Rehabilitation Benefits.


Question:
The unauthorized intrusion into a company's computer network resulting in damage to
intellectual property is best classified as which one of the following types of cyber
liability exposures?
Answer:
Intangible property.


Question:
An email was sent to a company's employee containing a harmful attachment. Several
employees opened the attachment which allowed hackers to obtain customer contact
information. This cyber risk loss is
Answer:
Damage to intangible property.


Question:
Which one of the following best describes real property?
Answer:
Tangible property that include land, structures permanently attached to the land, and
whatever is growing on the land.