AINS 23 - Segment B
In 1933, the National Association of Insurance Commissioners adopted a Nationwide Marine Definition
to:
a. Restrict the underwriting powers of marine insurers to specified types of property.
b. Differentiate between the coverages offered under ocean marine policies and inland marine policies.
c. Standardize marine insurance policy forms and rating across all states.
d. Serve as a glossary of nautical terminology for the general reference of marine underwriters. -
Answer-a. Restrict the underwriting powers of marine insurers to specified types of property.
Judgement rating is used to rate:
a. All marine insurance.
b. One-of-a-kind risks.
c. Filed inland marine risks.
d. Commercial property insurance. - Answer-b. One-of-a-kind risks.
There are many kinds of inland marine policies covering many classes of business. The reason some
classes are referred to as filed classes is because these are the classes for which the rates and/or policy
forms are filed with:
a. The state insurance department.
,b. The insured's agent or broker.
c. The Insurance Services Office, Inc.
d. The National Association of Insurance Commissioners. - Answer-a. The state insurance department.
Rating methods for the filled ISO commercial inland marine forms are based on procedures established
by which one of the following?
a. State insurance regulators
b. The National Marine Definition
c. The ISO Commercial Lines Manual (CLM)
d. Other standard commercial property coverages - Answer-c. The ISO Commercial Lines Manual (CLM)
The Nationwide Marine Definition was no longer needed following the enactment of legislation in the
1950s that:
a. Strictly tightened the rate and form regulation to which commercial inland and ocean marine
insurance is subject.
b. Permitted a single insurer to offer fire, casualty, and marine coverages.
c. Restricted domestic insurers' underwriting of marine classes of insurance.
d. Clearly defined the distinction between property insurance and marine insurance. - Answer-b.
Permitted a single insurer to offer fire, casualty, and marine coverages.
Which one of the following best describes non-filed inland marine builders risk insurance?
a. It covers a contractor's interest in building supplies or fixtures that the contractor has been hired to
install but does not cover the building itself.
b. It covers the structure under construction, temporary structures at the building site, and building
materials that have not yet become part of the building.
c. It can be added to an ISO Builders Risk Coverage form to add coverage for incidental expenses that
might result from a physical loss to a building project, such as additional interest, advertising expenses,
or real estate taxes.
,d. It covers liability that arises from the property owner's use of subcontractors. - Answer-b. It covers
the structure under construction, temporary structures at the building site, and building materials that
have not yet become part of the building.
Which one of the following is a common example of a bailee's coverage form that covers loss to
customers' goods only if the insured bailee is legally liable for the loss?
a. Bailee's special risks coverage form
b. Motor truck cargo liability policy
c. Bailees customers' policy
d. Warehouse operator's legal liability policy - Answer-d. Warehouse operator's legal liability policy
Which one of the following statements is correct with respect to contractor's equipment floaters?
a. Coverage applies only to self-propelled equipment, such as cranes and bulldozers.
b. A large contractor may obtain blanket coverage applying to all equipment, whether owned, rented, or
borrowed by the contractor.
c. Coverage includes the cost of renting additional equipment if required during peak periods.
d. The covered causes of loss are limited to fire, lightning, explosion, windstorm, hail, collision, overturn,
and collapse of bridges and culverts. - Answer-b. A large contractor may obtain blanket coverage
applying to all equipment, whether owned, rented, or borrowed by the contractor.
Which one of the following best describes the bailees' customers policy?
a. It is purchased by bailees to cover damage to customers' goods while in the possession of the bailee,
regardless of whether the bailee is legally liable for the damage.
b. It is purchased by property owners to cover their liability for damage to a bailee's premises caused by
the property they have entrusted to the bailee.
c. It is purchased by bailees to cover their legal liability for damage to the property of others while in the
bailee's possession.
d. It is purchased by property owners to cover damage to their property while in the care, custody, and
control of a bailee and for which the bailee is not liable. - Answer-a. It is purchased by bailees to cover
, damage to customers' goods while in the possession of the bailee, regardless of whether the bailee is
legally liable for the damage.
Which one of the following statements is correct with respect to electronic data processing equipment
floaters?
a. Coverage is limited to equipment, data, and media owned by the insured; the form does not cover
similar property of others in the insured's care, custody, or control.
b. They are required because such equipment is specifically excluded by the Building and Personal
Property (BPP) Coverage Form and other commercial property forms.
c. The policy definition of "equipment" is usually limited to mainframe computers, servers, printers, disk
drives and laptops.
d. Many cover special perils such as mechanical or electrical breakdown, and they may also insure
covered property while it is in transit or at unlisted locations. - Answer-d. Many cover special perils such
as mechanical or electrical breakdown, and they may also insure covered property while it is in transit or
at unlisted locations.
Which one of the following can be added to a builders risk policy to cover various incidental expenses
that might result from a physical loss to a building project, such as additional interest, advertising
expenses, or real estate taxes?
a. Extra expense coverage
b. Contingent loss coverage
c. Incidental expenses coverage
d. Soft costs coverage - Answer-d. Soft costs coverage
Lumber Company owns several large pieces of mobile equipment used in its lumbering operations. What
type of inland marine coverage form would best be used to insure Lumber's equipment?
a. Builders risk
b. Transit (transportation)
c. Contractors equipment
d. Motor truck cargo - Answer-c. Contractors equipment
In 1933, the National Association of Insurance Commissioners adopted a Nationwide Marine Definition
to:
a. Restrict the underwriting powers of marine insurers to specified types of property.
b. Differentiate between the coverages offered under ocean marine policies and inland marine policies.
c. Standardize marine insurance policy forms and rating across all states.
d. Serve as a glossary of nautical terminology for the general reference of marine underwriters. -
Answer-a. Restrict the underwriting powers of marine insurers to specified types of property.
Judgement rating is used to rate:
a. All marine insurance.
b. One-of-a-kind risks.
c. Filed inland marine risks.
d. Commercial property insurance. - Answer-b. One-of-a-kind risks.
There are many kinds of inland marine policies covering many classes of business. The reason some
classes are referred to as filed classes is because these are the classes for which the rates and/or policy
forms are filed with:
a. The state insurance department.
,b. The insured's agent or broker.
c. The Insurance Services Office, Inc.
d. The National Association of Insurance Commissioners. - Answer-a. The state insurance department.
Rating methods for the filled ISO commercial inland marine forms are based on procedures established
by which one of the following?
a. State insurance regulators
b. The National Marine Definition
c. The ISO Commercial Lines Manual (CLM)
d. Other standard commercial property coverages - Answer-c. The ISO Commercial Lines Manual (CLM)
The Nationwide Marine Definition was no longer needed following the enactment of legislation in the
1950s that:
a. Strictly tightened the rate and form regulation to which commercial inland and ocean marine
insurance is subject.
b. Permitted a single insurer to offer fire, casualty, and marine coverages.
c. Restricted domestic insurers' underwriting of marine classes of insurance.
d. Clearly defined the distinction between property insurance and marine insurance. - Answer-b.
Permitted a single insurer to offer fire, casualty, and marine coverages.
Which one of the following best describes non-filed inland marine builders risk insurance?
a. It covers a contractor's interest in building supplies or fixtures that the contractor has been hired to
install but does not cover the building itself.
b. It covers the structure under construction, temporary structures at the building site, and building
materials that have not yet become part of the building.
c. It can be added to an ISO Builders Risk Coverage form to add coverage for incidental expenses that
might result from a physical loss to a building project, such as additional interest, advertising expenses,
or real estate taxes.
,d. It covers liability that arises from the property owner's use of subcontractors. - Answer-b. It covers
the structure under construction, temporary structures at the building site, and building materials that
have not yet become part of the building.
Which one of the following is a common example of a bailee's coverage form that covers loss to
customers' goods only if the insured bailee is legally liable for the loss?
a. Bailee's special risks coverage form
b. Motor truck cargo liability policy
c. Bailees customers' policy
d. Warehouse operator's legal liability policy - Answer-d. Warehouse operator's legal liability policy
Which one of the following statements is correct with respect to contractor's equipment floaters?
a. Coverage applies only to self-propelled equipment, such as cranes and bulldozers.
b. A large contractor may obtain blanket coverage applying to all equipment, whether owned, rented, or
borrowed by the contractor.
c. Coverage includes the cost of renting additional equipment if required during peak periods.
d. The covered causes of loss are limited to fire, lightning, explosion, windstorm, hail, collision, overturn,
and collapse of bridges and culverts. - Answer-b. A large contractor may obtain blanket coverage
applying to all equipment, whether owned, rented, or borrowed by the contractor.
Which one of the following best describes the bailees' customers policy?
a. It is purchased by bailees to cover damage to customers' goods while in the possession of the bailee,
regardless of whether the bailee is legally liable for the damage.
b. It is purchased by property owners to cover their liability for damage to a bailee's premises caused by
the property they have entrusted to the bailee.
c. It is purchased by bailees to cover their legal liability for damage to the property of others while in the
bailee's possession.
d. It is purchased by property owners to cover damage to their property while in the care, custody, and
control of a bailee and for which the bailee is not liable. - Answer-a. It is purchased by bailees to cover
, damage to customers' goods while in the possession of the bailee, regardless of whether the bailee is
legally liable for the damage.
Which one of the following statements is correct with respect to electronic data processing equipment
floaters?
a. Coverage is limited to equipment, data, and media owned by the insured; the form does not cover
similar property of others in the insured's care, custody, or control.
b. They are required because such equipment is specifically excluded by the Building and Personal
Property (BPP) Coverage Form and other commercial property forms.
c. The policy definition of "equipment" is usually limited to mainframe computers, servers, printers, disk
drives and laptops.
d. Many cover special perils such as mechanical or electrical breakdown, and they may also insure
covered property while it is in transit or at unlisted locations. - Answer-d. Many cover special perils such
as mechanical or electrical breakdown, and they may also insure covered property while it is in transit or
at unlisted locations.
Which one of the following can be added to a builders risk policy to cover various incidental expenses
that might result from a physical loss to a building project, such as additional interest, advertising
expenses, or real estate taxes?
a. Extra expense coverage
b. Contingent loss coverage
c. Incidental expenses coverage
d. Soft costs coverage - Answer-d. Soft costs coverage
Lumber Company owns several large pieces of mobile equipment used in its lumbering operations. What
type of inland marine coverage form would best be used to insure Lumber's equipment?
a. Builders risk
b. Transit (transportation)
c. Contractors equipment
d. Motor truck cargo - Answer-c. Contractors equipment
