EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER, 2024
AINS 23 Exam Study Guide with
Complete Solutions
Agreed Value optional coverage is often elected by risk averse firms in order to - Answer✔✔-
Alleviate the risk of not complying with the Coinsurance condition.
Which one of the following statements is correct with respect to the Building and Personal
Property (BPP) Coverage Form? - Answer✔✔-The BPP lists several types of classes of property
that do not qualify as covered property.
Which one of the following is correct with respect to the Increased Cost of Construction
additional coverage of the Building and Personal Property Coverage Form (BPP)? - Answer✔✔-It
provides a small amount of insurance to cover the increased cost to comply with ordinances or
laws regulating the repair, rebuilding, or replacement of covered buildings.
Which one of the following is one of the covered causes of loss in the commercial property
policy Causes of Loss—Basic form? - Answer✔✔-Vandalism
Which one of the following is correct with respect to the Inspections and Surveys common
condition of the Insurance Services Office (ISO) Commercial Package Policy? - Answer✔✔-The
insurer does not make safety inspections, and does not guarantee that conditions are safe or
healthful.
Page 1/23
,EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER, 2024
Although buildings can be classified in many ways, the system used to classify buildings for
purposes of rating commercial property insurance is based on their - Answer✔✔-Ability to resist
fire.
Which one of the following is true about the Business Income Agreed Value coverage option in a
business income form? - Answer✔✔-The coinsurance condition is suspended as long as the
insured carries the amount of insurance that is agreed upon with the insurer.
Rachel's salon is insured under a commercial package policy that includes the Business Income
(and Extra Expense) Coverage Form. Rachel's salon sustained an actual loss of business income
at the described premises as a result of a fire damage and access to Rachel's salon was
prohibited by civil authority. Rachel decided to rent a temporary location and rent substitute
equipment while her shop was being repaired. However, while at the temporary location,
Rachel's regular customers attended other salons and Rachel' income was below normal levels.
Rachel returned to her salon once it was repaired and her business income returned to normal.
Which one of the following insuring agreements would best apply to Rachel's claim under the
Business Income (and Extra Expense) Coverage Form? - Answer✔✔-Business Income and Extra
Expense insuring agreements
Martin's Dry Cleaners (MDC) is insured under a Business Income (and Extra Expense) Coverage
Form with a $1 million Business Income limit of insurance for the dry cleaners location, subject
to option (2) Business Income Other Than "Rental Value". None of the optional coverages of the
Business Income (and Extra Expense) are in effect and no endorsements apply to MDC's
Business Income (and Extra Expense) Coverage Form. The one year policy period shown in the
Page 2/23
, EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER, 2024
declarations began on July 1, 20X1. On October 1, 20X1, access was denied to MDC for five
weeks by civil authorities because of fire damage to a shop right next door to MDC. The
resulting loss of business income that MDC sustained was $70,000, including a $5,000 loss for
the first 72 hours following the time of action by civil authority. After the first 72 hours, MDC
sustained $11,000 business income loss in week 1, $12,000 business income loss in week 2,
$13,000 bu - Answer✔✔-$50,000 of Martins dry cleaners business income would be covered
under the Business Income (and Extra Expense) Coverage Form. Coverage applies up to a
maximum of four consecutive weeks after the time of the action.
Which one of these is an example of a loss that would be covered under the Commercial Crime
Coverage Form? - Answer✔✔-Compensatory damages arising directly from a loss covered by
the policy would be covered under the Commercial Crime Coverage Form.
ABC, Inc., is a large, national retailer that sells a variety of consumer goods. ABC carries a
Commercial Package Policy that includes Insurance Service Office's Commercial Crime Coverage
Form (Loss Sustained) with the following insuring agreements: Employee Theft; Forgery or
Alteration; Inside the Premises—Theft of Money and Securities; and Inside the Premises—
Robbery or Safe Burglary of Other Property. The limit of insurance for each one of these insuring
agreements is $100,000 and the deductible per occurrence for each one of these insuring
agreements is $1,000. The policy year is 20X1.
During 20X1, two employees, Beth and Jim, in collusion, stole money and merchandise from
ABC. Beth and Jim stole money on May 1, 20X1 and August 13, 20X1. They also stole
Page 3/23
AINS 23 Exam Study Guide with
Complete Solutions
Agreed Value optional coverage is often elected by risk averse firms in order to - Answer✔✔-
Alleviate the risk of not complying with the Coinsurance condition.
Which one of the following statements is correct with respect to the Building and Personal
Property (BPP) Coverage Form? - Answer✔✔-The BPP lists several types of classes of property
that do not qualify as covered property.
Which one of the following is correct with respect to the Increased Cost of Construction
additional coverage of the Building and Personal Property Coverage Form (BPP)? - Answer✔✔-It
provides a small amount of insurance to cover the increased cost to comply with ordinances or
laws regulating the repair, rebuilding, or replacement of covered buildings.
Which one of the following is one of the covered causes of loss in the commercial property
policy Causes of Loss—Basic form? - Answer✔✔-Vandalism
Which one of the following is correct with respect to the Inspections and Surveys common
condition of the Insurance Services Office (ISO) Commercial Package Policy? - Answer✔✔-The
insurer does not make safety inspections, and does not guarantee that conditions are safe or
healthful.
Page 1/23
,EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER, 2024
Although buildings can be classified in many ways, the system used to classify buildings for
purposes of rating commercial property insurance is based on their - Answer✔✔-Ability to resist
fire.
Which one of the following is true about the Business Income Agreed Value coverage option in a
business income form? - Answer✔✔-The coinsurance condition is suspended as long as the
insured carries the amount of insurance that is agreed upon with the insurer.
Rachel's salon is insured under a commercial package policy that includes the Business Income
(and Extra Expense) Coverage Form. Rachel's salon sustained an actual loss of business income
at the described premises as a result of a fire damage and access to Rachel's salon was
prohibited by civil authority. Rachel decided to rent a temporary location and rent substitute
equipment while her shop was being repaired. However, while at the temporary location,
Rachel's regular customers attended other salons and Rachel' income was below normal levels.
Rachel returned to her salon once it was repaired and her business income returned to normal.
Which one of the following insuring agreements would best apply to Rachel's claim under the
Business Income (and Extra Expense) Coverage Form? - Answer✔✔-Business Income and Extra
Expense insuring agreements
Martin's Dry Cleaners (MDC) is insured under a Business Income (and Extra Expense) Coverage
Form with a $1 million Business Income limit of insurance for the dry cleaners location, subject
to option (2) Business Income Other Than "Rental Value". None of the optional coverages of the
Business Income (and Extra Expense) are in effect and no endorsements apply to MDC's
Business Income (and Extra Expense) Coverage Form. The one year policy period shown in the
Page 2/23
, EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER, 2024
declarations began on July 1, 20X1. On October 1, 20X1, access was denied to MDC for five
weeks by civil authorities because of fire damage to a shop right next door to MDC. The
resulting loss of business income that MDC sustained was $70,000, including a $5,000 loss for
the first 72 hours following the time of action by civil authority. After the first 72 hours, MDC
sustained $11,000 business income loss in week 1, $12,000 business income loss in week 2,
$13,000 bu - Answer✔✔-$50,000 of Martins dry cleaners business income would be covered
under the Business Income (and Extra Expense) Coverage Form. Coverage applies up to a
maximum of four consecutive weeks after the time of the action.
Which one of these is an example of a loss that would be covered under the Commercial Crime
Coverage Form? - Answer✔✔-Compensatory damages arising directly from a loss covered by
the policy would be covered under the Commercial Crime Coverage Form.
ABC, Inc., is a large, national retailer that sells a variety of consumer goods. ABC carries a
Commercial Package Policy that includes Insurance Service Office's Commercial Crime Coverage
Form (Loss Sustained) with the following insuring agreements: Employee Theft; Forgery or
Alteration; Inside the Premises—Theft of Money and Securities; and Inside the Premises—
Robbery or Safe Burglary of Other Property. The limit of insurance for each one of these insuring
agreements is $100,000 and the deductible per occurrence for each one of these insuring
agreements is $1,000. The policy year is 20X1.
During 20X1, two employees, Beth and Jim, in collusion, stole money and merchandise from
ABC. Beth and Jim stole money on May 1, 20X1 and August 13, 20X1. They also stole
Page 3/23
