AINS 103 2027 UPDATE WITH COMPLETE SOLUTIONS
Question 1.
Which one of the following best describes real property?
Select one:
A. Property being shipped to or from others.
B. Business personal property that includes furniture, machinery and equipment, and
stock/inventory.
C. Tangible property that includes land, structures permanently attached to the land, and
whatever is growing on the land.
D. Vehicles, merchandise, furniture, tools, and similar items.
Correct Answer: C. Tangible property that includes land, structures permanently
attached to the land, and whatever is growing on the land.
Question 2.
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?
Select one:
A. Cost to rent temporary office space
B. Insurance premiums
C. Debt repayments
D. Payroll of key employees
Correct Answer: A. Cost to rent temporary office space
Question 3.
Upon entering a restaurant, a customer grasped a handrail that 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?
Select one:
A. Premises and operations liability
B. Personal and advertising injury liability
C. Absolute liability
D. Products and completed operations liability
Correct Answer: A. Premises and operations liability
,Question 4.
The liability loss exposure that exists when an organization is legally responsible for bodily
injury or property damage caused by an accident that occurs on an organization's owned,
leased, or rented property is
Select one:
A. Professional liability.
B. Property liability.
C. Operations liability.
D. Premises and operations liability.
Correct Answer: D. Premises and operations liability.
Question 5.
Automobile liability exposures can result from
Select one:
A. Damage to or destruction of an owned vehicle.
B. Loss of use of an owned automobile.
C. Workers compensation laws.
D. Hiring or borrowing an automobile.
Correct Answer: D. Hiring or borrowing an automobile.
Question 6.
To be covered under a workers compensation statute, an injury or disease (in most states)
must meet which one of the following requirements?
Select one:
A. Result from the employer's negligence
B. Occur away from the regular work premises
C. Arise out of employees' job-related injuries and diseases
D. Result in total disability
Correct Answer: C. Arise out of employees' job-related injuries and diseases
,Question 7.
Cyber risk intellectual property loss exposures include
Select one:
A. Cyber extortion of trade secrets.
B. Personal and advertising injury liability.
C. Loss to tangible property.
D. Property damage liability.
Correct Answer: A. Cyber extortion of trade secrets.
Question 8.
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?
Select one:
A. Two disgruntled employees use the computer system to transfer office funds into their
own personal bank accounts.
B. The computer system is hacked and data including credit card numbers are stolen.
C. Thieves break into the main office and steal several desktop computers.
D. There is a fire in the storage area which destroys the backup copy of the office
computer system.
Correct Answer: B. The computer system is hacked and data including credit
card numbers are stolen.
Question 9.
A commercial building may contain furniture, machinery and equipment and finished
products. Which one of the following is the term generally used in property insurance
policies to refer to all these types of property?
Select one:
A. Business personal property
B. Stock
C. Inventory
D. Commercial property
Correct Answer: A. Business personal property
Question 10.
A family recently purchased a new home constructed by a residential home builder. Two
months after taking possession, several of the family members were injured when the roof
suddenly collapsed. The family sued the construction company and was awarded
monetary damages for their injuries. This is an example of which one of the following types
of commercial liability loss exposure for the construction company?
, Select one:
A. Products liability
B. Premises and operations liability
C. Completed operations liability
D. Employers liability
Correct Answer: C. Completed operations liability
Question 11.
Which one of the following is an example of injury or damage arising from an occurrence
that would be covered by the products and completed operations liability portion of the
Commercial General Liability (CGL) Coverage Form?
Select one:
A. A defective gas range manufactured by the insured explodes causing injury.
B. A customer's house is set on fire while the insured is doing plumbing work.
C. A dissatisfied customer sues an insured for slander.
D. A customer is injured when she slips on a wet floor in a store.
Correct Answer: A. A defective gas range manufactured by the insured explodes
causing injury
Question 12.
Joe Motors, which services automobiles, wants to maintain the goodwill of its customers.
This is best accomplished by
Select one:
A. Purchasing garage liability insurance.
B. Purchasing garagekeepers insurance.
C. Lowering the physical damage deductible under its business auto insurance.
D. Raising liability limits under its business auto insurance.
Correct Answer: B. Purchasing garagekeepers insurance.
Question 13.
Workers compensation benefits include which one of the following?
Select one:
A. Death benefits of 100 percent of wage loss
B. Pain and suffering benefits
C. Rehabilitation benefits
D. Property damage benefits
Correct Answer: C. Rehabilitation benefits
Question 1.
Which one of the following best describes real property?
Select one:
A. Property being shipped to or from others.
B. Business personal property that includes furniture, machinery and equipment, and
stock/inventory.
C. Tangible property that includes land, structures permanently attached to the land, and
whatever is growing on the land.
D. Vehicles, merchandise, furniture, tools, and similar items.
Correct Answer: C. Tangible property that includes land, structures permanently
attached to the land, and whatever is growing on the land.
Question 2.
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?
Select one:
A. Cost to rent temporary office space
B. Insurance premiums
C. Debt repayments
D. Payroll of key employees
Correct Answer: A. Cost to rent temporary office space
Question 3.
Upon entering a restaurant, a customer grasped a handrail that 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?
Select one:
A. Premises and operations liability
B. Personal and advertising injury liability
C. Absolute liability
D. Products and completed operations liability
Correct Answer: A. Premises and operations liability
,Question 4.
The liability loss exposure that exists when an organization is legally responsible for bodily
injury or property damage caused by an accident that occurs on an organization's owned,
leased, or rented property is
Select one:
A. Professional liability.
B. Property liability.
C. Operations liability.
D. Premises and operations liability.
Correct Answer: D. Premises and operations liability.
Question 5.
Automobile liability exposures can result from
Select one:
A. Damage to or destruction of an owned vehicle.
B. Loss of use of an owned automobile.
C. Workers compensation laws.
D. Hiring or borrowing an automobile.
Correct Answer: D. Hiring or borrowing an automobile.
Question 6.
To be covered under a workers compensation statute, an injury or disease (in most states)
must meet which one of the following requirements?
Select one:
A. Result from the employer's negligence
B. Occur away from the regular work premises
C. Arise out of employees' job-related injuries and diseases
D. Result in total disability
Correct Answer: C. Arise out of employees' job-related injuries and diseases
,Question 7.
Cyber risk intellectual property loss exposures include
Select one:
A. Cyber extortion of trade secrets.
B. Personal and advertising injury liability.
C. Loss to tangible property.
D. Property damage liability.
Correct Answer: A. Cyber extortion of trade secrets.
Question 8.
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?
Select one:
A. Two disgruntled employees use the computer system to transfer office funds into their
own personal bank accounts.
B. The computer system is hacked and data including credit card numbers are stolen.
C. Thieves break into the main office and steal several desktop computers.
D. There is a fire in the storage area which destroys the backup copy of the office
computer system.
Correct Answer: B. The computer system is hacked and data including credit
card numbers are stolen.
Question 9.
A commercial building may contain furniture, machinery and equipment and finished
products. Which one of the following is the term generally used in property insurance
policies to refer to all these types of property?
Select one:
A. Business personal property
B. Stock
C. Inventory
D. Commercial property
Correct Answer: A. Business personal property
Question 10.
A family recently purchased a new home constructed by a residential home builder. Two
months after taking possession, several of the family members were injured when the roof
suddenly collapsed. The family sued the construction company and was awarded
monetary damages for their injuries. This is an example of which one of the following types
of commercial liability loss exposure for the construction company?
, Select one:
A. Products liability
B. Premises and operations liability
C. Completed operations liability
D. Employers liability
Correct Answer: C. Completed operations liability
Question 11.
Which one of the following is an example of injury or damage arising from an occurrence
that would be covered by the products and completed operations liability portion of the
Commercial General Liability (CGL) Coverage Form?
Select one:
A. A defective gas range manufactured by the insured explodes causing injury.
B. A customer's house is set on fire while the insured is doing plumbing work.
C. A dissatisfied customer sues an insured for slander.
D. A customer is injured when she slips on a wet floor in a store.
Correct Answer: A. A defective gas range manufactured by the insured explodes
causing injury
Question 12.
Joe Motors, which services automobiles, wants to maintain the goodwill of its customers.
This is best accomplished by
Select one:
A. Purchasing garage liability insurance.
B. Purchasing garagekeepers insurance.
C. Lowering the physical damage deductible under its business auto insurance.
D. Raising liability limits under its business auto insurance.
Correct Answer: B. Purchasing garagekeepers insurance.
Question 13.
Workers compensation benefits include which one of the following?
Select one:
A. Death benefits of 100 percent of wage loss
B. Pain and suffering benefits
C. Rehabilitation benefits
D. Property damage benefits
Correct Answer: C. Rehabilitation benefits
