AINS103 Practice Questions, AINS 103 With Complete
Solutions
A building contractor uses lower grade materials than called for
in the specifications for an office building. A year after the
building was completed, a balcony collapses, injuring several
employees and customers and causing damage to the building
and contents. For the building construction company, this is an
example of
Select one:
A. A completed operations liability exposure.
B. An operations liability exposure.
C. A premises liability exposure.
D. A products liability exposure. Correct Answers A. A
completed operations liability exposure.
A building contractor uses lower grade materials than called for
in the specifications for an office building. A year after the
building was completed, a balcony collapses, injuring several
employees and customers and causing damage to the building
and contents. For the building construction company, this is an
example of Correct Answers A completed operations liability
exposure.
A carrier is prevented from delivering cargo aboard its ship due
to an accident that occurred while at sea. One of the losses the
carrier may face is loss of freight. Loss of freight refers to which
one of the following? Correct Answers The compensation the
carrier received for transporting cargo.
,A carrier that is prevented by an accident from delivering the
cargo aboard its ship may face an exposure called loss of freight,
which is
Select one:
A. The compensation the carrier receives for transporting cargo.
B. A penalty the carrier pays the shipper for nondelivery.
C. The liability for loss or damage to the cargo entrusted to it.
D. The cost of disposing of undeliverable goods. Correct
Answers A. The compensation the carrier receives for
transporting cargo.
A carrier that is prevented by an accident from delivering the
cargo aboard its ship may face an exposure called loss of freight,
which is Correct Answers The compensation the carrier
receives for transporting cargo.
A commercial building may contain furniture, machinery and
equipment and finished products. Which one of the following is
the term generally used in property insurance policies to refer to
all these types of property?
Select one:
A. Business personal property
B. Stock
C. Inventory
D. Commercial property Correct Answers A. Business personal
property
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 Correct Answers Does not
cover the directors injuries sustained because they happened
during an athletic event.
A contractor is hired to install a new concrete sidewalk in front
of a store. Several weeks after the sidewalk was installed, the
concrete buckles and a passerby trips and falls on the buckled
sidewalk. The passerby sues the contractor to recover medical
expenses incurred due to the fall. This commercial liability is
categorized as Correct Answers Completed operations liability.
A contractor is hired to install a new concrete sidewalk in front
of a store. Several weeks after the sidewalk was installed, the
concrete buckles and a passerby trips and falls on the buckled
sidewalk. The passerby sues the contractor to recover medical
expenses incurred due to the fall. This commercial liability loss
is categorized as
Select one:
A. Products liability.
B. Environmental liability.
C. Professional liability.
D. Completed operations liability. Correct Answers D.
Completed operations liability.
A customer filed a suit against Patsy's Market, claiming that she
was injured when she slipped and fell in the produce section.
The customer claimed that she broke her elbow, had to have
surgery, and missed a week of work. The owner of Patsy's
, Market told its commercial general liability (CGL) insurer that
the produce area was always clean and that the claim was
suspicious. After reviewing the medical bills and video footage
from the market, the insurer concluded that Patsy's Market was
probably liable for the customer's injury. The CGL insurer will
most likely attempt to do which one of the following?
Select one:
A. Defend Patsy's Market in court
B. Refuse to defend Patsy's Market based on an exclusion
C. Negotiate an out of court settlement
D. Deny the claim based on the owner's suspicion Correct
Answers C. Negotiate an out of court settlement
A customer filed a suit against Patsy's Market, claiming that she
was injured when she slipped and fell in the produce section.
The customer claims that she broke her elbow, had to have
surgery, and missed a week of work. The owner of Patsy's
Market told its commercial general liability (CGL) insurer that
the produce area was always clean and that the claim was
suspicious. After reviewing the medical bills and video footage
from the market, the insurer concluded that Patsy's Market was
probably liable for the customers injury. The CGL insurer will
most likely attempt to do which of the following? Correct
Answers Negotiate an out of court settlement.
A customer shopping at Clark's Food Market dropped a bottle of
wine at the checkout counter. The bottle broke and cut the
customer's leg. The customer required some minor medical
attention and a few stitches. Which one of the following
coverages under Clark's Commercial General Liability (CGL)
coverage form would pay for the customer's expenses?
Solutions
A building contractor uses lower grade materials than called for
in the specifications for an office building. A year after the
building was completed, a balcony collapses, injuring several
employees and customers and causing damage to the building
and contents. For the building construction company, this is an
example of
Select one:
A. A completed operations liability exposure.
B. An operations liability exposure.
C. A premises liability exposure.
D. A products liability exposure. Correct Answers A. A
completed operations liability exposure.
A building contractor uses lower grade materials than called for
in the specifications for an office building. A year after the
building was completed, a balcony collapses, injuring several
employees and customers and causing damage to the building
and contents. For the building construction company, this is an
example of Correct Answers A completed operations liability
exposure.
A carrier is prevented from delivering cargo aboard its ship due
to an accident that occurred while at sea. One of the losses the
carrier may face is loss of freight. Loss of freight refers to which
one of the following? Correct Answers The compensation the
carrier received for transporting cargo.
,A carrier that is prevented by an accident from delivering the
cargo aboard its ship may face an exposure called loss of freight,
which is
Select one:
A. The compensation the carrier receives for transporting cargo.
B. A penalty the carrier pays the shipper for nondelivery.
C. The liability for loss or damage to the cargo entrusted to it.
D. The cost of disposing of undeliverable goods. Correct
Answers A. The compensation the carrier receives for
transporting cargo.
A carrier that is prevented by an accident from delivering the
cargo aboard its ship may face an exposure called loss of freight,
which is Correct Answers The compensation the carrier
receives for transporting cargo.
A commercial building may contain furniture, machinery and
equipment and finished products. Which one of the following is
the term generally used in property insurance policies to refer to
all these types of property?
Select one:
A. Business personal property
B. Stock
C. Inventory
D. Commercial property Correct Answers A. Business personal
property
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 Correct Answers Does not
cover the directors injuries sustained because they happened
during an athletic event.
A contractor is hired to install a new concrete sidewalk in front
of a store. Several weeks after the sidewalk was installed, the
concrete buckles and a passerby trips and falls on the buckled
sidewalk. The passerby sues the contractor to recover medical
expenses incurred due to the fall. This commercial liability is
categorized as Correct Answers Completed operations liability.
A contractor is hired to install a new concrete sidewalk in front
of a store. Several weeks after the sidewalk was installed, the
concrete buckles and a passerby trips and falls on the buckled
sidewalk. The passerby sues the contractor to recover medical
expenses incurred due to the fall. This commercial liability loss
is categorized as
Select one:
A. Products liability.
B. Environmental liability.
C. Professional liability.
D. Completed operations liability. Correct Answers D.
Completed operations liability.
A customer filed a suit against Patsy's Market, claiming that she
was injured when she slipped and fell in the produce section.
The customer claimed that she broke her elbow, had to have
surgery, and missed a week of work. The owner of Patsy's
, Market told its commercial general liability (CGL) insurer that
the produce area was always clean and that the claim was
suspicious. After reviewing the medical bills and video footage
from the market, the insurer concluded that Patsy's Market was
probably liable for the customer's injury. The CGL insurer will
most likely attempt to do which one of the following?
Select one:
A. Defend Patsy's Market in court
B. Refuse to defend Patsy's Market based on an exclusion
C. Negotiate an out of court settlement
D. Deny the claim based on the owner's suspicion Correct
Answers C. Negotiate an out of court settlement
A customer filed a suit against Patsy's Market, claiming that she
was injured when she slipped and fell in the produce section.
The customer claims that she broke her elbow, had to have
surgery, and missed a week of work. The owner of Patsy's
Market told its commercial general liability (CGL) insurer that
the produce area was always clean and that the claim was
suspicious. After reviewing the medical bills and video footage
from the market, the insurer concluded that Patsy's Market was
probably liable for the customers injury. The CGL insurer will
most likely attempt to do which of the following? Correct
Answers Negotiate an out of court settlement.
A customer shopping at Clark's Food Market dropped a bottle of
wine at the checkout counter. The bottle broke and cut the
customer's leg. The customer required some minor medical
attention and a few stitches. Which one of the following
coverages under Clark's Commercial General Liability (CGL)
coverage form would pay for the customer's expenses?
