AINS 103 Exploring Commercial
Insurance questions well answered to
pass
Worker's compensation benefits include which one of the following?
Rehabilitation benefits
3 multiple choice options
Meat Products Company (MPC) runs packing plants in three Midwest states. The company was in the
news recently because of its labor practices. The Department of Labor (DOL) investigated complaints
from five female employees that MPC discriminated against them. The DOL found the claim was true.
The Immigration and Naturalization Service (INS) found that the company employed illegal immigrants
and paid them less than the minimum wage. When this news became public, MPC's reputation was
severely harmed. This scenario illustrates which source of reputation risk?
Regulatory and legal compliance
3 multiple choice options
Which of the following supply chain exposures can a business mitigate by carefully wording contracts
and diversifying suppliers?
Loss of supply due to external events
3 multiple choice options
Which one of the following perils would be covered under the commercial property policy broad form
but not covered under the basic form?
Damage due to weight of snow
3 multiple choice options
, Which of the following is a covered cause of loss under the Causes of Loss - Basic Form?
Sprinkler leakage
3 multiple choice options
Hager Incorporated insures its building and business personal property under the Building and Personal
Property Coverage Form (BPP). The company suffered a fire loss that destroyed a significant portion of
the building and damaged the fence surrounding the building. Assuming that the building is insured for
at least 80 percent of its value, coverage extensions under the BPP would provide coverage for which
one of the following?
Damage to the fence surrounding the building
3 multiple choice options
The coinsurance basis for business income coverage is
Net income plus all operating expenses that would have been incurred in the absence of a loss
3 multiple choice options
Leslie suffered a severe burn to her hand when her microwave oven manufactured by LH Appliances
caught fire. The fire also caused damage to her kitchen cabinets. Two years later, Leslie decided to file a
suit against the manufacturer when she learned that microwaves manufactured by LH Appliances had
been found responsible for several other fires. LH Appliances was insured by an occurrence version of
the commercial general liability (CGL) coverage form with no deductible or endorsements. Which one of
the following correctly describes how LH Appliances' CGL will apply to the claim?
The CGL will defend the insured and pay for both the bodily injury and damages to the cabinets if found
liable
3 multiple choice options
Which one of these offenses would NOT be considered a personal and advertising injury under Coverage
B of the Commercial General Liability Coverage Form?
Insurance questions well answered to
pass
Worker's compensation benefits include which one of the following?
Rehabilitation benefits
3 multiple choice options
Meat Products Company (MPC) runs packing plants in three Midwest states. The company was in the
news recently because of its labor practices. The Department of Labor (DOL) investigated complaints
from five female employees that MPC discriminated against them. The DOL found the claim was true.
The Immigration and Naturalization Service (INS) found that the company employed illegal immigrants
and paid them less than the minimum wage. When this news became public, MPC's reputation was
severely harmed. This scenario illustrates which source of reputation risk?
Regulatory and legal compliance
3 multiple choice options
Which of the following supply chain exposures can a business mitigate by carefully wording contracts
and diversifying suppliers?
Loss of supply due to external events
3 multiple choice options
Which one of the following perils would be covered under the commercial property policy broad form
but not covered under the basic form?
Damage due to weight of snow
3 multiple choice options
, Which of the following is a covered cause of loss under the Causes of Loss - Basic Form?
Sprinkler leakage
3 multiple choice options
Hager Incorporated insures its building and business personal property under the Building and Personal
Property Coverage Form (BPP). The company suffered a fire loss that destroyed a significant portion of
the building and damaged the fence surrounding the building. Assuming that the building is insured for
at least 80 percent of its value, coverage extensions under the BPP would provide coverage for which
one of the following?
Damage to the fence surrounding the building
3 multiple choice options
The coinsurance basis for business income coverage is
Net income plus all operating expenses that would have been incurred in the absence of a loss
3 multiple choice options
Leslie suffered a severe burn to her hand when her microwave oven manufactured by LH Appliances
caught fire. The fire also caused damage to her kitchen cabinets. Two years later, Leslie decided to file a
suit against the manufacturer when she learned that microwaves manufactured by LH Appliances had
been found responsible for several other fires. LH Appliances was insured by an occurrence version of
the commercial general liability (CGL) coverage form with no deductible or endorsements. Which one of
the following correctly describes how LH Appliances' CGL will apply to the claim?
The CGL will defend the insured and pay for both the bodily injury and damages to the cabinets if found
liable
3 multiple choice options
Which one of these offenses would NOT be considered a personal and advertising injury under Coverage
B of the Commercial General Liability Coverage Form?
