AINS 103 UPDATED EXAM SCRIPT QUESTIONS AND
ANSWERS GUARANTEE A+
✔✔Under Coverage A of the commercial general liability coverage form (CGL), property
damage would include all of the following, EXCEPT: - ✔✔A. Infringement of copyright
✔✔Chuckie's chicken distributor researches the benefits of consuming chicken versus
consuming beef. In November 2011, Chuckie's publishes a brochure outlining the
potential health hazards of consuming beef and explaining why chicken is a healthier
alternative. Chuckie continues to publish and distribute the same brochure for six
months. In March 2012, several beef distributors file a suit against Chuckie's for
personal and advertising injury. Which one of the following exclusions would apply to
this claim under Coverage B of Chuckie's Commercial General Liability Coverage Form
(CGL) with a policy period of January 2012 - January 2013? - ✔✔C. Material published
prior to the policy period
✔✔The Commercial General Liability (CGL) Coverage B—Personal and Advertising
Injury Liability provides coverage for which one of the following? - ✔✔B. False arrest
✔✔The Coverage B—Personal and Advertising Injury Liability of the Commercial
General Liability (CGL) Coverage Form parallels the Coverage A insuring agreement,
but personal and advertising injury applies to an - ✔✔A. Offense arising out of the
named insured's business.
✔✔Austin cut his finger while working at a jobsite for Walsh Builders. He had to go to a
hospital, where he received 5 stitches and a tetanus vaccine. When he received the
hospital bill for $990, Austin made a claim under Coverage C—Medical Payments of
Walsh Builders' CGL policy. Which one of the following reasons would the CGL insurer
use for denying Austin's claim? - ✔✔A. He is entitled to workers compensation benefits.
✔✔Lucy, the owner of Lucy's Flower Shop, was delivering a vase of flowers to a
customer, Mrs. White. When Mrs. White opened her front door, her dog ran outside,
knocking the flowers from Lucy's hands, and causing the vase to shatter and injure Mrs.
White. Although the customer insisted that she would be fine, Lucy received a medical
bill for injuries to Mrs. White two years later. The medical treatment had been received
one week before Lucy received the bill. Lucy explains the situation to her insurer and
requests coverage under her Commercial General Liability Coverage Form (CGL).
Which one of the following is correct regarding whether the medical expenses will be
covered under Coverage C—Medical Payments of the CGL? - ✔✔B. No, because the
medical expenses must be incurred and reported to the insurer within one year after the
date of the accident.
✔✔An insured keeps his truck in a garage. A deer gets trapped in the garage and, in an
attempt to escape, climbs on top of the truck, breaking the windshield and causing
, several dents in the hood. The insured's Business Auto Coverage Form (BACF)
provides physical damage coverage for specified causes of loss with a $100 deductible
and collision with a $250 deductible. It will cost the insured $750 to replace the broken
windshield and $1,200 to repair the dents. How much, if anything, will the business auto
insurer pay for this loss? - ✔✔$0
✔✔JG Painting is insured under a monoline commercial auto policy. The business is
located in Pennsylvania, but also does work in New Jersey and Delaware. Which one of
the following would be used to add PIP insurance coverage to an auto policy? - ✔✔A.
Endorsements
✔✔Robert, a single father of two, owns a painting business. While driving his insured
van on the job, Robert is involved in a serious accident and spends several days in the
hospital. Robert incurs the following expenses.
$4,000 Lost wages$6,000 Payment for a nanny to watch his two children$5,000 Cost to
replace the painting equipment he was hauling$30,000 Medical bills
Assuming Robert has adequate limits and a typical personal injury protection (PIP)
endorsement to his Business Auto Coverage Form, how much of the above will be paid
by Robert's auto insurer? - ✔✔$40K PIP will pay all the expenses except for the loss of
equipment, which is a property damage claim.
✔✔Employers liability insurance covers an employer against which one of the
following? - ✔✔B. Its liability for an employee's occupational injury or disease that is not
covered by a workers compensation statute
✔✔Umbrella liability insurance - ✔✔C. May cover some claims that are not covered by
underlying liability insurance.
✔✔Which one of the following statements about excess liability insurance coverage and
umbrella liability insurance coverage is most accurate? - ✔✔C. Umbrella liability policies
typically provide primary coverage for certain types of losses not covered by underlying
insurance, while excess liability policies typically do not.
✔✔Shelton Industries is insured under a commercial property policy and an equipment
breakdown policy. The company has two claims while both policies are in force. The
first claim is for a furnace explosion and the second claim is for an explosion of unfired
pressure vessels. Which one of the following explains how these losses would be
covered under the policies? - ✔✔B. Each loss would be covered under the commercial
property policy only.
✔✔Which one of the following is a policy that covers the crime loss exposures of
financial institutions such as banks, savings and loan institutions, and insurance
companies? - ✔✔B. Financial institution bond
ANSWERS GUARANTEE A+
✔✔Under Coverage A of the commercial general liability coverage form (CGL), property
damage would include all of the following, EXCEPT: - ✔✔A. Infringement of copyright
✔✔Chuckie's chicken distributor researches the benefits of consuming chicken versus
consuming beef. In November 2011, Chuckie's publishes a brochure outlining the
potential health hazards of consuming beef and explaining why chicken is a healthier
alternative. Chuckie continues to publish and distribute the same brochure for six
months. In March 2012, several beef distributors file a suit against Chuckie's for
personal and advertising injury. Which one of the following exclusions would apply to
this claim under Coverage B of Chuckie's Commercial General Liability Coverage Form
(CGL) with a policy period of January 2012 - January 2013? - ✔✔C. Material published
prior to the policy period
✔✔The Commercial General Liability (CGL) Coverage B—Personal and Advertising
Injury Liability provides coverage for which one of the following? - ✔✔B. False arrest
✔✔The Coverage B—Personal and Advertising Injury Liability of the Commercial
General Liability (CGL) Coverage Form parallels the Coverage A insuring agreement,
but personal and advertising injury applies to an - ✔✔A. Offense arising out of the
named insured's business.
✔✔Austin cut his finger while working at a jobsite for Walsh Builders. He had to go to a
hospital, where he received 5 stitches and a tetanus vaccine. When he received the
hospital bill for $990, Austin made a claim under Coverage C—Medical Payments of
Walsh Builders' CGL policy. Which one of the following reasons would the CGL insurer
use for denying Austin's claim? - ✔✔A. He is entitled to workers compensation benefits.
✔✔Lucy, the owner of Lucy's Flower Shop, was delivering a vase of flowers to a
customer, Mrs. White. When Mrs. White opened her front door, her dog ran outside,
knocking the flowers from Lucy's hands, and causing the vase to shatter and injure Mrs.
White. Although the customer insisted that she would be fine, Lucy received a medical
bill for injuries to Mrs. White two years later. The medical treatment had been received
one week before Lucy received the bill. Lucy explains the situation to her insurer and
requests coverage under her Commercial General Liability Coverage Form (CGL).
Which one of the following is correct regarding whether the medical expenses will be
covered under Coverage C—Medical Payments of the CGL? - ✔✔B. No, because the
medical expenses must be incurred and reported to the insurer within one year after the
date of the accident.
✔✔An insured keeps his truck in a garage. A deer gets trapped in the garage and, in an
attempt to escape, climbs on top of the truck, breaking the windshield and causing
, several dents in the hood. The insured's Business Auto Coverage Form (BACF)
provides physical damage coverage for specified causes of loss with a $100 deductible
and collision with a $250 deductible. It will cost the insured $750 to replace the broken
windshield and $1,200 to repair the dents. How much, if anything, will the business auto
insurer pay for this loss? - ✔✔$0
✔✔JG Painting is insured under a monoline commercial auto policy. The business is
located in Pennsylvania, but also does work in New Jersey and Delaware. Which one of
the following would be used to add PIP insurance coverage to an auto policy? - ✔✔A.
Endorsements
✔✔Robert, a single father of two, owns a painting business. While driving his insured
van on the job, Robert is involved in a serious accident and spends several days in the
hospital. Robert incurs the following expenses.
$4,000 Lost wages$6,000 Payment for a nanny to watch his two children$5,000 Cost to
replace the painting equipment he was hauling$30,000 Medical bills
Assuming Robert has adequate limits and a typical personal injury protection (PIP)
endorsement to his Business Auto Coverage Form, how much of the above will be paid
by Robert's auto insurer? - ✔✔$40K PIP will pay all the expenses except for the loss of
equipment, which is a property damage claim.
✔✔Employers liability insurance covers an employer against which one of the
following? - ✔✔B. Its liability for an employee's occupational injury or disease that is not
covered by a workers compensation statute
✔✔Umbrella liability insurance - ✔✔C. May cover some claims that are not covered by
underlying liability insurance.
✔✔Which one of the following statements about excess liability insurance coverage and
umbrella liability insurance coverage is most accurate? - ✔✔C. Umbrella liability policies
typically provide primary coverage for certain types of losses not covered by underlying
insurance, while excess liability policies typically do not.
✔✔Shelton Industries is insured under a commercial property policy and an equipment
breakdown policy. The company has two claims while both policies are in force. The
first claim is for a furnace explosion and the second claim is for an explosion of unfired
pressure vessels. Which one of the following explains how these losses would be
covered under the policies? - ✔✔B. Each loss would be covered under the commercial
property policy only.
✔✔Which one of the following is a policy that covers the crime loss exposures of
financial institutions such as banks, savings and loan institutions, and insurance
companies? - ✔✔B. Financial institution bond
