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AINS 103 EXAM 1|| ACTUAL EXAM 2024-2025 ALL
QUESTIONS AND CORRECT ANSWERS WITH
RATIONALES ALREADY GRADED A+|| LATEST
UPDATE WITH VERIFIED SOLUTIONS|| BRAND
NEW!!!
Once a risk manager has started the risk management process and has completed a
scan of the environment, which one of the following is the next step in the
enterprise risk management (ERM) process?
A. Analyze risks
B. Monitor and assure
C. Scan the environment
D. Identify risks - ANSWER: D. Identify risks
A company owns land that is used as a softball diamond and recreational park for
hosting employee picnics. Once a year the company also allows a non-profit
organization to hold a softball game on these premises. During this year's softball
game, the director of the non-profit was injured when a softball hit him in the head.
He asked the company that owns the land to pay for his trip to the emergency
room. The company's unendorsed Commercial General Liability policy
A. Pays for the direct;s injuries sustained up to the Coverage C limit
B. Does not cover the directors injuries sustained because they happened during an
athletic event
C. Pays up to the per occurrence liability limit for the director's injuries sustained
D. Does not cover the directors injuries sustained because of the volunteer
exclusion - ANSWER: B. Does not cover the directors injuries sustained because
they happened during an athletic event
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Consider the claims process, which one of the following data analysis methods
begins with data analysis of claims activity logs to identify steps taken for claims
and the timing of them?
A. Cluster analysis
B. Regression analysis
C. Process mining
D. Data mining - ANSWER: C. Process mining
Which one of the following claims would be covered under Coverage B-Personal
and Advertising Injury Liability of the CGL coverage form?
A. An insured is sued for damaging a competitor's software and causing the
competitor to lose business. The competitor submits a claim for his loss of business
B. A landlord of a commercial building argues with a tenant, enters the tenant's
store after hours and damages the tenant's merchandise. The tenant files a claim for
his damaged merchandise
C. When a new store opens down the street, the insured submits a false story to the
newspaper stating that the store increases its prices before putting items on sale.
The insured is sued for the false statements
D. A store manager accuses a young man of shoplifting, apprehends him, and locks
him in a strafe room until the police arrive. When its discovered that the young
man is innocent, he files a claim against the store - ANSWER: D. A store
manager accuses a young man of shoplifting, apprehends him, and locks him in a
strafe room until the police arrive. When its discovered that the young man is
innocent, he files a claim against the store
Injury arising out of which one of the following offenses could be covered under
Coverage B of the CGL policy?
A. Wrongful eviction
B. Lawful prosecution
C. Vandalism
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D. Breach of contract - ANSWER: A. Wrongful eviction
Ivan is a commercial insurance producer looking to expand his book of business.
He is researching local businesses trying to determine which businesses might be
eligible for the BOP and which would not be eligible. Which one of the following
businesses would be ineligible for BOP coverage?
A. Jillian's Amusement Park
B. McMister Windows and Doors
C. Burt's Shoe Shop
D. Wanda's Homemade Donut Shop - ANSWER: A. Jillian's Amusement Park
Amusement parks are generally not eligible for BOP coverage. Retail stores, small
restaurants with limited cooking, and trade contractors are generally eligible for
BOP coverage
The Paoli Power Shop has its building and business personal property insured
under a BOP. Torrential rainstorms caused a nearby river to overflow its banks and
flood the area. The flood caused significant water damage to both the building and
personal property. Which one of the following would be true under the BOP?
A. The water damage would not be covered
B. Upgrades following the flood would be covered
C. The BOP policy would cover all losses from the flood
D. Property would be covered but personal property would not - ANSWER: A.
The water damage would not be covered
Like all policies, the BOP property policy specifies causes of loss that limit or
exclude coverage to include flooding
Business income insurance covers which one of the following types of losses that
could result from a fire?
A. The cost to replace destroyed inventory
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B. The cost of fighting the fire
C. The extra expenses for renting a temporary office
D. The cost of repairing a building - ANSWER: C. The extra expenses for renting
a temporary office
Devon Distributing purchased smart watches for all their long haul drivers. The
devices were monitored from the headquarters so the location of the driver was
always known to Devon management. The watches could also send text messages
and accept phone calls, so there was constant communication. This allowed Devon
management to respond immediately in the event of an emergency or failure of a
vehicle. This network is an example of:
A. Big data network
B. Internet of things
C. Social Media
D. Artificial intelligence - ANSWER: B. Internet of things
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. - ANSWER: C.
Tangible property that includes land, structures permanently attached to the land,
and whatever is growing on the land.
AINS 103 EXAM 1|| ACTUAL EXAM 2024-2025 ALL
QUESTIONS AND CORRECT ANSWERS WITH
RATIONALES ALREADY GRADED A+|| LATEST
UPDATE WITH VERIFIED SOLUTIONS|| BRAND
NEW!!!
Once a risk manager has started the risk management process and has completed a
scan of the environment, which one of the following is the next step in the
enterprise risk management (ERM) process?
A. Analyze risks
B. Monitor and assure
C. Scan the environment
D. Identify risks - ANSWER: D. Identify risks
A company owns land that is used as a softball diamond and recreational park for
hosting employee picnics. Once a year the company also allows a non-profit
organization to hold a softball game on these premises. During this year's softball
game, the director of the non-profit was injured when a softball hit him in the head.
He asked the company that owns the land to pay for his trip to the emergency
room. The company's unendorsed Commercial General Liability policy
A. Pays for the direct;s injuries sustained up to the Coverage C limit
B. Does not cover the directors injuries sustained because they happened during an
athletic event
C. Pays up to the per occurrence liability limit for the director's injuries sustained
D. Does not cover the directors injuries sustained because of the volunteer
exclusion - ANSWER: B. Does not cover the directors injuries sustained because
they happened during an athletic event
,2|Pag e
Consider the claims process, which one of the following data analysis methods
begins with data analysis of claims activity logs to identify steps taken for claims
and the timing of them?
A. Cluster analysis
B. Regression analysis
C. Process mining
D. Data mining - ANSWER: C. Process mining
Which one of the following claims would be covered under Coverage B-Personal
and Advertising Injury Liability of the CGL coverage form?
A. An insured is sued for damaging a competitor's software and causing the
competitor to lose business. The competitor submits a claim for his loss of business
B. A landlord of a commercial building argues with a tenant, enters the tenant's
store after hours and damages the tenant's merchandise. The tenant files a claim for
his damaged merchandise
C. When a new store opens down the street, the insured submits a false story to the
newspaper stating that the store increases its prices before putting items on sale.
The insured is sued for the false statements
D. A store manager accuses a young man of shoplifting, apprehends him, and locks
him in a strafe room until the police arrive. When its discovered that the young
man is innocent, he files a claim against the store - ANSWER: D. A store
manager accuses a young man of shoplifting, apprehends him, and locks him in a
strafe room until the police arrive. When its discovered that the young man is
innocent, he files a claim against the store
Injury arising out of which one of the following offenses could be covered under
Coverage B of the CGL policy?
A. Wrongful eviction
B. Lawful prosecution
C. Vandalism
,3|Pag e
D. Breach of contract - ANSWER: A. Wrongful eviction
Ivan is a commercial insurance producer looking to expand his book of business.
He is researching local businesses trying to determine which businesses might be
eligible for the BOP and which would not be eligible. Which one of the following
businesses would be ineligible for BOP coverage?
A. Jillian's Amusement Park
B. McMister Windows and Doors
C. Burt's Shoe Shop
D. Wanda's Homemade Donut Shop - ANSWER: A. Jillian's Amusement Park
Amusement parks are generally not eligible for BOP coverage. Retail stores, small
restaurants with limited cooking, and trade contractors are generally eligible for
BOP coverage
The Paoli Power Shop has its building and business personal property insured
under a BOP. Torrential rainstorms caused a nearby river to overflow its banks and
flood the area. The flood caused significant water damage to both the building and
personal property. Which one of the following would be true under the BOP?
A. The water damage would not be covered
B. Upgrades following the flood would be covered
C. The BOP policy would cover all losses from the flood
D. Property would be covered but personal property would not - ANSWER: A.
The water damage would not be covered
Like all policies, the BOP property policy specifies causes of loss that limit or
exclude coverage to include flooding
Business income insurance covers which one of the following types of losses that
could result from a fire?
A. The cost to replace destroyed inventory
, 4|Pag e
B. The cost of fighting the fire
C. The extra expenses for renting a temporary office
D. The cost of repairing a building - ANSWER: C. The extra expenses for renting
a temporary office
Devon Distributing purchased smart watches for all their long haul drivers. The
devices were monitored from the headquarters so the location of the driver was
always known to Devon management. The watches could also send text messages
and accept phone calls, so there was constant communication. This allowed Devon
management to respond immediately in the event of an emergency or failure of a
vehicle. This network is an example of:
A. Big data network
B. Internet of things
C. Social Media
D. Artificial intelligence - ANSWER: B. Internet of things
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. - ANSWER: C.
Tangible property that includes land, structures permanently attached to the land,
and whatever is growing on the land.
