AINS 103 Study Guide (Latest 2023/ 2024 Update) Exploring Commercial Insurance | Complete with Questions and Verified Answers| 100% Correct| Grade A

AINS 103 Study Guide (Latest 2023/ 2024 Update) Exploring Commercial Insurance | Complete with Questions and Verified Answers| 100% Correct| Grade A Q: Marine insurance includes both ocean and inland marine coverage in the U.S. only Answer: TRUE Q: Disease thought to be caused by work or the work environment. Answer: Occupational disease Q: A description of the property insured would be located on the ________ _____ of a CPP Answer: Declarations page Q: Three types of causes of loss forms in a commercial property policy: _____, ______, _______ Answer: basic, broad, special Q: The ____ and ____ BPP forms are nearly identical, using the _____ _____ approach Answer: basic and broad, use 'named perils' approach Q: In addition to what is covered on the basic form, the broad form covers: -_____ ______ - weight of ___, ___ or ____ - _____ damage Answer: Falling objects Weight of ice, snow, sleet Water damage Q: Fire, Lightning, Explosion, windstorm, hail, smoke, sprinkler damage are all covered on the: A. Broad Form Only B. Basic Form Only C. Both Answer: C. Both Q: The special BPP form insurances on an _____ perils basis Answer: open, anything that isn't specifically excluded Q: The amount an insurer is obligated to pay for a loss covered by the BPP is determined by the ______ of _____ and the ______ Answer: Limits of insurance and the deductible Q: BPP Limits of Insurance can either be ______ or ______ Answer: specific or blanket Q: Removing the debris after a fire, recovering data from damaged servers would be things covered in a BPP's _______ _______ and _______ Answer: Additional coverages and extensions Q: Although subject to special limits, the amounts payable under coverage extensions are in ________ to the _______ _______ of insurance stated in the declarations Answer: in addition; overall limits Q: TRUE/FALSE: Business income insurance policies with and without additional coverage for extra expenses use the same insuring agreement Answer: TRUE Q: TRUE/FALSE: The Business Income With Extra Expense Coverage form covers extra expenses, but only if they reduce (i.e. mitigate the effects of) the business income loss Answer: FALSE - expenses like cleaning and restocking do not reduce the business income loss (i.e. are not critical to normal business operations like rent, utilities, payroll) but are still covered Q: TRUE/FALSE: The Business Income and Extra Expense Coverage form covers extra expenses, even if they do not reduce the business income loss Answer: TRUE Q: The limit of insurance stated in the BIC declarations is the _______ amount the insurer will pay for loss in any ___ occurrence Answer: Maximum amount for any one occurrence Q: If BIC is written on a specific basis, a limit is set for ____ _____ insured Answer: each building Q: If BIC is written on a blanket basis, a limit applies to ___ ______ at one location (or ___ _____ at multiple locations) Answer: all buildings at one location, or all buildings at multiple locations Q: In a BIC policy, the amount of insurance required = _________ __ x ________ _____ Answer: coinsurance % x coinsurance basis