AINS 23 Full Practice Exam Questions with Verified Solutions

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 Maintenance bond. 2) Which one of the following statements is correct with respect to ocean marine loss exposures? 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. 3) 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. 4) 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.5) If the Replacement Cost optional coverage of the Building and Personal Property Coverage Form (BPP) is selected, tenants' improvements and betterments areValued at replacement cost if the tenant actually repairs or replaces them, at its own cost, as soon as reasonably possible after the loss. 6) 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? $250,000 7) An environmental insurance policy that covers the loss exposures of a contractor performing environmental remediation services on contaminated sites is a(n) Contractors pollution liability policy8) 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. 9) Which one of the following is the coinsurance basis under a Business Income Coverage Form (BIC)? The projected net income and all operating expenses except for certain deductible items. 10) 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 Appraisal condition. 11) Which one of the following Commercial Crim