AINS 103 Test
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1. Workers compensation benefits include which one of Rehabilitation benefits
the following?
2. When a clothing manufacturer decides to expand the Loss or damage caused by
sale of its clothing line by offering internet purchases, computer viruses.
it creates new exposures not otherwise covered, or
not fully covered, by a traditional policy. These include
3. Which one of the following supply chain exposures Loss of supply due to ex-
can a business mitigate by carefully wording contracts ternal events
and diversifying suppliers?
4. The commercial property coverage part of a commer- A range of covered peril
cial package policy contains one or more commercial
property coverage forms. Each coverage form typical-
ly includes all of the following, EXCEPT:
5. Which one of the following statements best describes The Special Form provides
the Causes of Loss—Special Form? coverage for direct physi-
cal losses other than those
that are specifically ex-
cluded.
6. Which one of the following best describes real proper- Tangible property that in-
ty? cludes land, structures
permanently attached to
the land, and whatever is
growing on the land.
7. During a business interruption, some of the organiza- Payroll of key employees
tion's expenses, called continuing expenses, will con-
tinue, and other expenses, called noncontinuing ex-
, AINS 103 Test
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penses, will not continue. Which one of the following
is an example of a continuing expense?
8. A vehicle owner had a tire store install four new wheels Completed operations lia-
and tires on the vehicle. On the way home from the bility.
store, one of the wheels came off, causing the vehicle
to accidentally run off the road and strike a tree. The
vehicle owner sued the tire store for failing to properly
tighten the lug nuts on the vehicle. The loss exposure
faced by the tire store in this case is known as
9. Which one of the following entities would likely have Paul the plumber
the greatest completed operations loss exposure?
10. A carrier that is prevented by an accident from deliv- The compensation the
ering the cargo aboard its ship may face an exposure carrier receives for trans-
called loss of freight, which is porting cargo.
11. Which one of the following statements is correct with If an occurrence involves a
respect to the Building and Personal Property Cover- loss that affects more than
age Form (BPP) deductible? one category of covered
property and a separate
limit of insurance applies
to each category, losses to
all categories are totaled
and the deductible ap-
plied to that total amount.
12. Which one of the following statements is correct with Due to coverage exten-
respect to the Building and Personal Property Cover- sions, it is possible for the
age Form (BPP)? total payment for one loss
to exceed the policy limit.
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13. Which one of the following would be considered an The increased cost of rent
extra expense under the Business Income (and Extra at a temporary location
Expense) Coverage Form of the commercial package
policy?
14. Dooley's Restaurant is insured under a commercial The policy's covered caus-
package policy (CPP) with the Business Income (with es of loss did not include
Extra Expense) Coverage Form. The business suffered flood.
a $400,000 loss of business income when it was forced
to suspend operations after flood waters damaged
the basement and first floor of the restaurant. Which
one of the following is an acceptable reason for the
CPP insurer to deny the business income claim?
15. Lucy's Bakery is insured under a commercial package The salary of the assistant
policy with the Business Income (and Extra Expense) baker and cake decorator
Coverage Form. A fire loss caused significant damage
to the building. When Lucy learned that it would take
9 months to repair the building, she decided to tem-
porarily relocate to a nearby rental location. All of the
following would be considered covered extra expens-
es under the Business Income (and Extra Expense)
Coverage Form, EXCEPT:
16. Richard's Clothing Store has a $500,000 Business In- $100,000
come (and Extra Expense) Coverage Form on which
there is an 80 percent coinsurance clause. A fire swept
through the store. Richard's Clothing Store estimates
that its net income plus all operating expenses for the
policy period would have been $1,875,000. The esti-
mated business income loss is $300,000. How much
will the insurer pay?
Study online at https://quizlet.com/_bjkg86
1. Workers compensation benefits include which one of Rehabilitation benefits
the following?
2. When a clothing manufacturer decides to expand the Loss or damage caused by
sale of its clothing line by offering internet purchases, computer viruses.
it creates new exposures not otherwise covered, or
not fully covered, by a traditional policy. These include
3. Which one of the following supply chain exposures Loss of supply due to ex-
can a business mitigate by carefully wording contracts ternal events
and diversifying suppliers?
4. The commercial property coverage part of a commer- A range of covered peril
cial package policy contains one or more commercial
property coverage forms. Each coverage form typical-
ly includes all of the following, EXCEPT:
5. Which one of the following statements best describes The Special Form provides
the Causes of Loss—Special Form? coverage for direct physi-
cal losses other than those
that are specifically ex-
cluded.
6. Which one of the following best describes real proper- Tangible property that in-
ty? cludes land, structures
permanently attached to
the land, and whatever is
growing on the land.
7. During a business interruption, some of the organiza- Payroll of key employees
tion's expenses, called continuing expenses, will con-
tinue, and other expenses, called noncontinuing ex-
, AINS 103 Test
Study online at https://quizlet.com/_bjkg86
penses, will not continue. Which one of the following
is an example of a continuing expense?
8. A vehicle owner had a tire store install four new wheels Completed operations lia-
and tires on the vehicle. On the way home from the bility.
store, one of the wheels came off, causing the vehicle
to accidentally run off the road and strike a tree. The
vehicle owner sued the tire store for failing to properly
tighten the lug nuts on the vehicle. The loss exposure
faced by the tire store in this case is known as
9. Which one of the following entities would likely have Paul the plumber
the greatest completed operations loss exposure?
10. A carrier that is prevented by an accident from deliv- The compensation the
ering the cargo aboard its ship may face an exposure carrier receives for trans-
called loss of freight, which is porting cargo.
11. Which one of the following statements is correct with If an occurrence involves a
respect to the Building and Personal Property Cover- loss that affects more than
age Form (BPP) deductible? one category of covered
property and a separate
limit of insurance applies
to each category, losses to
all categories are totaled
and the deductible ap-
plied to that total amount.
12. Which one of the following statements is correct with Due to coverage exten-
respect to the Building and Personal Property Cover- sions, it is possible for the
age Form (BPP)? total payment for one loss
to exceed the policy limit.
, AINS 103 Test
Study online at https://quizlet.com/_bjkg86
13. Which one of the following would be considered an The increased cost of rent
extra expense under the Business Income (and Extra at a temporary location
Expense) Coverage Form of the commercial package
policy?
14. Dooley's Restaurant is insured under a commercial The policy's covered caus-
package policy (CPP) with the Business Income (with es of loss did not include
Extra Expense) Coverage Form. The business suffered flood.
a $400,000 loss of business income when it was forced
to suspend operations after flood waters damaged
the basement and first floor of the restaurant. Which
one of the following is an acceptable reason for the
CPP insurer to deny the business income claim?
15. Lucy's Bakery is insured under a commercial package The salary of the assistant
policy with the Business Income (and Extra Expense) baker and cake decorator
Coverage Form. A fire loss caused significant damage
to the building. When Lucy learned that it would take
9 months to repair the building, she decided to tem-
porarily relocate to a nearby rental location. All of the
following would be considered covered extra expens-
es under the Business Income (and Extra Expense)
Coverage Form, EXCEPT:
16. Richard's Clothing Store has a $500,000 Business In- $100,000
come (and Extra Expense) Coverage Form on which
there is an 80 percent coinsurance clause. A fire swept
through the store. Richard's Clothing Store estimates
that its net income plus all operating expenses for the
policy period would have been $1,875,000. The esti-
mated business income loss is $300,000. How much
will the insurer pay?
