AINS 103 Test Questions with
Correct Answers |2025/2026
Joe Motors, which services automobiles, wants to maintain the goodwill of its
customers. This is best accomplished by
Select one:
A. Purchasing garage liability insurance.
B. Purchasing garagekeepers insurance.
C. Lowering the physical damage deductible under its business auto insurance.
D. Raising liability limits under its business auto insurance. - ANSWER -B.
Purchasing garagekeepers insurance.
To be covered under a workers compensation statute, an injury or disease (in most
states) must meet which one of the following requirements?
Select one:
A. Result from the employer's negligence
B. Occur away from the regular work premises
C. Arise out of employees' job-related injuries and diseases
D. Result in total disability - ANSWER -C. Arise out of employees' job-related
injuries and diseases
Cyber risk intellectual property loss exposures include
Select one:
A. Cyber extortion of trade secrets.
B. Personal and advertising injury liability.
C. Loss to tangible property.
,D. Property damage liability. - ANSWER -A. Cyber extortion of trade secrets.
As part of its assessment of its cyber risk, an organization should consider whether
there are any intangible property exposures. Which one of the following would
best be classified as an intangible property loss?
Select one:
A. Two disgruntled employees use the computer system to transfer office funds
into their own personal bank accounts.
B. The computer system is hacked and data including credit card numbers are
stolen.
C. Thieves break into the main office and steal several desktop computers.
D. There is a fire in the storage area which destroys the backup copy of the office
computer system. - ANSWER -B. The computer system is hacked and data
including credit card numbers are stolen.
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 - ANSWER -A. Business personal property
A family recently purchased a new home constructed by a residential home
builder. Two months after taking possession, several of the family members were
injured when the roof suddenly collapsed. The family sued the construction
company and was awarded monetary damages for their injuries. This is an example
of which one of the following types of commercial liability loss exposure for the
construction company?
Select one:
,A. Products liability
B. Premises and operations liability
C. Completed operations liability
D. Employers liability - ANSWER -C. Completed operations liability
Which one of the following is an example of injury or damage arising from an
occurrence that would be covered by the products and completed operations
liability portion of the Commercial General Liability (CGL) Coverage Form?
Select one:
A. A defective gas range manufactured by the insured explodes causing injury.
B. A customer's house is set on fire while the insured is doing plumbing work.
C. A dissatisfied customer sues an insured for slander.
D. A customer is injured when she slips on a wet floor in a store. - ANSWER -A.
A defective gas range manufactured by the insured explodes causing injury
Workers compensation benefits include which one of the following?
Select one:
A. Death benefits of 100 percent of wage loss
B. Pain and suffering benefits
C. Rehabilitation benefits
D. Property damage benefits - ANSWER -C. Rehabilitation benefits
The liability loss exposure that exists when an organization is legally responsible
for bodily injury or property damage caused by an accident that occurs on an
organization's owned, leased, or rented property is
Select one:
A. Professional liability.
B. Property liability.
C. Operations liability.
D. Premises and operations liability. - ANSWER -D. Premises and operations
liability.
, Automobile liability exposures can result from
Select one:
A. Damage to or destruction of an owned vehicle.
B. Loss of use of an owned automobile.
C. Workers compensation laws.
D. Hiring or borrowing an automobile. - ANSWER -D. Hiring or borrowing an
automobile.
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
Select one:
A. Damage to intangible property.
B. Damage to personal property.
C. Damage to tangible property.
D. Errors and omissions liability. - ANSWER -A. Damage to intangible property.
An individual owns a web-based business. All sales records and contact data are
maintained on the same network server as the website. Someone hacks into the
server and deletes all of the saved data. Which one of the following types of loss is
this?
Select one:
A. Tangible property
B. Personal injury
C. Intangible property
D. Contingent business income - ANSWER -C. Intangible property
Property insurance policies use the term "personal property" to refer to the
Select one:
A. Property in transit.
B. Contents in and around a building.
Correct Answers |2025/2026
Joe Motors, which services automobiles, wants to maintain the goodwill of its
customers. This is best accomplished by
Select one:
A. Purchasing garage liability insurance.
B. Purchasing garagekeepers insurance.
C. Lowering the physical damage deductible under its business auto insurance.
D. Raising liability limits under its business auto insurance. - ANSWER -B.
Purchasing garagekeepers insurance.
To be covered under a workers compensation statute, an injury or disease (in most
states) must meet which one of the following requirements?
Select one:
A. Result from the employer's negligence
B. Occur away from the regular work premises
C. Arise out of employees' job-related injuries and diseases
D. Result in total disability - ANSWER -C. Arise out of employees' job-related
injuries and diseases
Cyber risk intellectual property loss exposures include
Select one:
A. Cyber extortion of trade secrets.
B. Personal and advertising injury liability.
C. Loss to tangible property.
,D. Property damage liability. - ANSWER -A. Cyber extortion of trade secrets.
As part of its assessment of its cyber risk, an organization should consider whether
there are any intangible property exposures. Which one of the following would
best be classified as an intangible property loss?
Select one:
A. Two disgruntled employees use the computer system to transfer office funds
into their own personal bank accounts.
B. The computer system is hacked and data including credit card numbers are
stolen.
C. Thieves break into the main office and steal several desktop computers.
D. There is a fire in the storage area which destroys the backup copy of the office
computer system. - ANSWER -B. The computer system is hacked and data
including credit card numbers are stolen.
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 - ANSWER -A. Business personal property
A family recently purchased a new home constructed by a residential home
builder. Two months after taking possession, several of the family members were
injured when the roof suddenly collapsed. The family sued the construction
company and was awarded monetary damages for their injuries. This is an example
of which one of the following types of commercial liability loss exposure for the
construction company?
Select one:
,A. Products liability
B. Premises and operations liability
C. Completed operations liability
D. Employers liability - ANSWER -C. Completed operations liability
Which one of the following is an example of injury or damage arising from an
occurrence that would be covered by the products and completed operations
liability portion of the Commercial General Liability (CGL) Coverage Form?
Select one:
A. A defective gas range manufactured by the insured explodes causing injury.
B. A customer's house is set on fire while the insured is doing plumbing work.
C. A dissatisfied customer sues an insured for slander.
D. A customer is injured when she slips on a wet floor in a store. - ANSWER -A.
A defective gas range manufactured by the insured explodes causing injury
Workers compensation benefits include which one of the following?
Select one:
A. Death benefits of 100 percent of wage loss
B. Pain and suffering benefits
C. Rehabilitation benefits
D. Property damage benefits - ANSWER -C. Rehabilitation benefits
The liability loss exposure that exists when an organization is legally responsible
for bodily injury or property damage caused by an accident that occurs on an
organization's owned, leased, or rented property is
Select one:
A. Professional liability.
B. Property liability.
C. Operations liability.
D. Premises and operations liability. - ANSWER -D. Premises and operations
liability.
, Automobile liability exposures can result from
Select one:
A. Damage to or destruction of an owned vehicle.
B. Loss of use of an owned automobile.
C. Workers compensation laws.
D. Hiring or borrowing an automobile. - ANSWER -D. Hiring or borrowing an
automobile.
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
Select one:
A. Damage to intangible property.
B. Damage to personal property.
C. Damage to tangible property.
D. Errors and omissions liability. - ANSWER -A. Damage to intangible property.
An individual owns a web-based business. All sales records and contact data are
maintained on the same network server as the website. Someone hacks into the
server and deletes all of the saved data. Which one of the following types of loss is
this?
Select one:
A. Tangible property
B. Personal injury
C. Intangible property
D. Contingent business income - ANSWER -C. Intangible property
Property insurance policies use the term "personal property" to refer to the
Select one:
A. Property in transit.
B. Contents in and around a building.
