AINS 103 EXAM REVIEW QUESTIONS AND
ANSWERS GRADED A+ 100% VERIFIED.
In property insurance, the term "property in transit" refers to which one
of the following? ANS >>> C. Property while being transported by trucks,
cars, buses, trains, airplanes, and ships
Extra expenses are expenses, in addition to ordinary expenses, that an
organization incurs to mitigate the effects of a business interruption.
Which one of the following is an example of an extra expense? ANS >>>
B. Cost to rent temporary office space
Radley Contracting Company is installing new signage on the front of a
building. George, a passerby walking near the building is injured when a
Radley employee accidentally drops a tool from a crane. George likely
has the ability to assert which one the following types of claims? ANS >>>
B. Premises and operations liability
Which one of the following entities would likely have the greatest
completed operations loss exposure? ANS >>> A. Paul the plumber
,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 ANS
>>> B. The compensation the carrier receives for transporting cargo.
To be covered under a workers compensation statute, an injury or
disease (in most states) must meet which one of the following
requirements? ANS >>> A. Arise out of employees' job-related injuries
and diseases
The unauthorized intrusion into a company's computer network
resulting in damage to intellectual property is best classified as which
one of the following types of cyber liability exposures? ANS >>> D.
Intangible property
An email was sent to a company's employees containing a harmful
attachment. Several employees opened the attachment which allowed
hackers to obtain customer contact information. This cyber risk loss is
ANS >>> D. Damage to intangible property.
NH Manufacturing insures its building and personal property under the
commercial property coverage part of a commercial package policy
(CPP). During a blizzard, a portion of the building's roof collapsed from
the weight of snow. The risk manager pulled out the CPP to make sure
that the building was covered for this type of loss. Which one of the
following components of the commercial property coverage part would
, provide the risk manager with information on the covered perils? ANS
>>> A. Causes of loss form
Which one of the following is one of the covered causes of loss in the
commercial property policy Causes of Loss—Basic form? ANS >>>
Vandalism
Billy owns a baseball souvenir store in Cooperstown, NY. He insured his
store under a Building and Personal Property Coverage Form (BPP) with
a $275,000 limit and a $1,500 deductible. A large fire in the store
caused significant damage amounting to $310,000 in covered damages.
How much would Billy's insurer pay under his BPP? ANS >>> $275K
Which one of the following statements about Inflation Guard optional
coverage of the Building and Personal Property Coverage Form (BPP) is
true? ANS >>> C. It automatically increases the limit of insurance by the
percentage of annual increase shown in the declarations.
Which one of the following would be covered under the Extra Expense
insuring agreement of the Business Income (and Extra Expense)
Coverage Form? ANS >>> D. Costs to move to a temporary location
Which one of the following would be considered an extra expense
under the Business Income (and Extra Expense) Coverage Form of the
commercial package policy? ANS >>> C. The increased cost of rent at a
temporary location
ANSWERS GRADED A+ 100% VERIFIED.
In property insurance, the term "property in transit" refers to which one
of the following? ANS >>> C. Property while being transported by trucks,
cars, buses, trains, airplanes, and ships
Extra expenses are expenses, in addition to ordinary expenses, that an
organization incurs to mitigate the effects of a business interruption.
Which one of the following is an example of an extra expense? ANS >>>
B. Cost to rent temporary office space
Radley Contracting Company is installing new signage on the front of a
building. George, a passerby walking near the building is injured when a
Radley employee accidentally drops a tool from a crane. George likely
has the ability to assert which one the following types of claims? ANS >>>
B. Premises and operations liability
Which one of the following entities would likely have the greatest
completed operations loss exposure? ANS >>> A. Paul the plumber
,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 ANS
>>> B. The compensation the carrier receives for transporting cargo.
To be covered under a workers compensation statute, an injury or
disease (in most states) must meet which one of the following
requirements? ANS >>> A. Arise out of employees' job-related injuries
and diseases
The unauthorized intrusion into a company's computer network
resulting in damage to intellectual property is best classified as which
one of the following types of cyber liability exposures? ANS >>> D.
Intangible property
An email was sent to a company's employees containing a harmful
attachment. Several employees opened the attachment which allowed
hackers to obtain customer contact information. This cyber risk loss is
ANS >>> D. Damage to intangible property.
NH Manufacturing insures its building and personal property under the
commercial property coverage part of a commercial package policy
(CPP). During a blizzard, a portion of the building's roof collapsed from
the weight of snow. The risk manager pulled out the CPP to make sure
that the building was covered for this type of loss. Which one of the
following components of the commercial property coverage part would
, provide the risk manager with information on the covered perils? ANS
>>> A. Causes of loss form
Which one of the following is one of the covered causes of loss in the
commercial property policy Causes of Loss—Basic form? ANS >>>
Vandalism
Billy owns a baseball souvenir store in Cooperstown, NY. He insured his
store under a Building and Personal Property Coverage Form (BPP) with
a $275,000 limit and a $1,500 deductible. A large fire in the store
caused significant damage amounting to $310,000 in covered damages.
How much would Billy's insurer pay under his BPP? ANS >>> $275K
Which one of the following statements about Inflation Guard optional
coverage of the Building and Personal Property Coverage Form (BPP) is
true? ANS >>> C. It automatically increases the limit of insurance by the
percentage of annual increase shown in the declarations.
Which one of the following would be covered under the Extra Expense
insuring agreement of the Business Income (and Extra Expense)
Coverage Form? ANS >>> D. Costs to move to a temporary location
Which one of the following would be considered an extra expense
under the Business Income (and Extra Expense) Coverage Form of the
commercial package policy? ANS >>> C. The increased cost of rent at a
temporary location
