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AINS 103 Exam Questions and
Answers Latest 2026
The Crime coverage form that covers losses occurring
during the policy period and discovered no later than 1
year after the policy expiration is
a. Discovery Form
b. Loss Sustained Form Ans: b. Loss Sustained Form
In property insurance, the term "property in transit"
refers to which one of the following?
A. Mobile equipment while moving under its own power
from one work location to another
B. Property while being transported by trucks, cars,
buses, trains, airplanes, and ships
C. Property while being moved from one building to
another at the insured location only
D. Owned property while located anywhere other than the
insured location Ans: B. Property while being transported
by trucks, cars, buses, trains, airplanes, and ships
In business income insurance, the expenses that an
organization would not have incurred if the business
interruption had not occurred are called
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A. Extra expenses.
B. Excludable expenses.
C. Continuing expenses.
D. Contingent expenses. Ans: A. Extra expenses.
These are expenses that would not have incurred if the
business interruption had not occurred.
XYZ contractor, covered under an unendorsed
Commercial General Liability (CGL) Coverage Form, is
installing kitchen cabinets in a customer's home. The
contractor manufactured the cabinets. While the
contractor is fastening a cabinet, it falls and injures the
customer. Which one of the following best explains how
coverage under the contractor's CGL Coverage Form
applies in this case?
A. Premises and operations liability applies because the
contractor was in the process of installing the cabinets.
B. Products and completed operations liability applies
because the contractor was installing cabinets it
manufactured.
C. Products and completed operations liability applies
because the contractor was completing the work.
D. Premises and operations liability applies because the
contractor was working at the customer's premises. Ans:
© 2025 All rights reserved
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A. Premises and operations liability applies because the
contractor was in the process of installing the cabinets.
A vehicle owner had a tire store install four new wheels
and tires on the vehicle. On the way home from the 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
A. Automobile liability.
B. Completed operations liability.
C. Employers liability.
D. Products liability. Ans: B. Completed operations
liability.
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
A. The cost of disposing of undeliverable goods.
B. A penalty the carrier pays the shipper for nondelivery.
C. The compensation the carrier receives for transporting
cargo.
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D. The liability for loss or damage to the cargo entrusted
to it. Ans: C. The compensation the carrier receives for
transporting cargo.
Joe signs a contract with Home Builders to install the
electrical wiring for a new home. He uses his own tools
and follows the specifications in the contract. Joe is
burned while installing the wiring. Does Home Builders'
workers compensation policy cover Joe's injury?
A. Yes, because the injury arose out of and in the course
of employment
B. Yes, because Home Builders must provide no-fault
protection for employees
C. No, because Joe is not an employee of Home Builders
D. No, because Joe probably contributed to the injury
Ans: C. No, because Joe is not an employee of Home
Builders
Workers Comp is not applicable to:
Independent contactors and their employees
Leased employees
Temporary employees
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
© 2025 All rights reserved
AINS 103 Exam Questions and
Answers Latest 2026
The Crime coverage form that covers losses occurring
during the policy period and discovered no later than 1
year after the policy expiration is
a. Discovery Form
b. Loss Sustained Form Ans: b. Loss Sustained Form
In property insurance, the term "property in transit"
refers to which one of the following?
A. Mobile equipment while moving under its own power
from one work location to another
B. Property while being transported by trucks, cars,
buses, trains, airplanes, and ships
C. Property while being moved from one building to
another at the insured location only
D. Owned property while located anywhere other than the
insured location Ans: B. Property while being transported
by trucks, cars, buses, trains, airplanes, and ships
In business income insurance, the expenses that an
organization would not have incurred if the business
interruption had not occurred are called
© 2025 All rights reserved
, 2 | Page
A. Extra expenses.
B. Excludable expenses.
C. Continuing expenses.
D. Contingent expenses. Ans: A. Extra expenses.
These are expenses that would not have incurred if the
business interruption had not occurred.
XYZ contractor, covered under an unendorsed
Commercial General Liability (CGL) Coverage Form, is
installing kitchen cabinets in a customer's home. The
contractor manufactured the cabinets. While the
contractor is fastening a cabinet, it falls and injures the
customer. Which one of the following best explains how
coverage under the contractor's CGL Coverage Form
applies in this case?
A. Premises and operations liability applies because the
contractor was in the process of installing the cabinets.
B. Products and completed operations liability applies
because the contractor was installing cabinets it
manufactured.
C. Products and completed operations liability applies
because the contractor was completing the work.
D. Premises and operations liability applies because the
contractor was working at the customer's premises. Ans:
© 2025 All rights reserved
, 3 | Page
A. Premises and operations liability applies because the
contractor was in the process of installing the cabinets.
A vehicle owner had a tire store install four new wheels
and tires on the vehicle. On the way home from the 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
A. Automobile liability.
B. Completed operations liability.
C. Employers liability.
D. Products liability. Ans: B. Completed operations
liability.
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
A. The cost of disposing of undeliverable goods.
B. A penalty the carrier pays the shipper for nondelivery.
C. The compensation the carrier receives for transporting
cargo.
© 2025 All rights reserved
, 4 | Page
D. The liability for loss or damage to the cargo entrusted
to it. Ans: C. The compensation the carrier receives for
transporting cargo.
Joe signs a contract with Home Builders to install the
electrical wiring for a new home. He uses his own tools
and follows the specifications in the contract. Joe is
burned while installing the wiring. Does Home Builders'
workers compensation policy cover Joe's injury?
A. Yes, because the injury arose out of and in the course
of employment
B. Yes, because Home Builders must provide no-fault
protection for employees
C. No, because Joe is not an employee of Home Builders
D. No, because Joe probably contributed to the injury
Ans: C. No, because Joe is not an employee of Home
Builders
Workers Comp is not applicable to:
Independent contactors and their employees
Leased employees
Temporary employees
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
© 2025 All rights reserved
