AINS 103 COMPREHENSIVE 2026 EXAM QUESTIONS
AND ANSWERS RATED A+
✔✔Adverse selection - ✔✔The tendency of those most likely to experience loss to be
the most likely to purchase insurance.
✔✔Nonowned auto - ✔✔An auto defined by the Business Auto Coverage Form as not
owned, leased, hired, rented, or borrowed by the named insured.
✔✔Businessowners policy (BOP) - ✔✔A package policy that combines most of the
property and liability coverages needed by small and medium-size businesses.
✔✔Instrumentalities of transportation and communication - ✔✔Equipment and
structures used to transmit communications and transport property, such as bridges,
tunnels, piers, wharves, pipelines, cranes and other equipment for loading and
unloading, transmission lines, and radio and television equipment.
✔✔Dealers policy - ✔✔A policy that covers the inventory and other property of any of
the types of dealers that qualify for inland marine coverage (such as jewelers,
equipment dealers, fine arts dealers, and furriers).
✔✔Bailee - ✔✔The party temporarily possessing the personal property in a bailment.
✔✔Contractors equipment floater - ✔✔A policy that covers mobile equipment or tools
while located anywhere in the coverage territory.
✔✔Motor truck cargo liability policy - ✔✔Policy that covers a trucker's liability for
damage to cargo of others being transported by the trucker.
✔✔Trip transit policy - ✔✔Policy that covers a particular shipment of goods specified in
the policy.
, ✔✔Annual transit policy - ✔✔Policy that covers all shipments made or received by the
insured throughout a one-year policy period.
✔✔Inland marine insurance - ✔✔Insurance that covers many different classes of
property that typically involve an element of transportation.
✔✔Loss-Sustained Form - ✔✔Form that covers losses actually sustained during the
policy period and discovered no later than one year after policy expiration.
✔✔Discovery Form - ✔✔Form that covers losses discovered during the policy period
even though they may have occurred before the policy period.
✔✔Fired pressure vessel - ✔✔A closed container that is heated by the direct fire of
burning fuel and can withstand internal pressure.
✔✔Boiler - ✔✔A fired pressure vessel constructed of cast iron or steel in which water is
heated to produce steam or hot water.
✔✔Excess liability policy - ✔✔A policy that covers liability claims in excess of the limits
of an underlying policy or a stated retention amount.
✔✔Umbrella policy - ✔✔A liability policy that provides excess coverage above
underlying policies and may also provide coverage not available in the underlying
policies, subject to a self-insured retention.
✔✔Aggregate limit - ✔✔The maximum amount an insurer will pay for all covered losses
during the covered policy period.
✔✔Occurrence coverage trigger - ✔✔The event that triggers coverage under an
occurrence coverage form: injury or damage that occurs during the policy period.
✔✔Dual capacity - ✔✔A legal doctrine giving the employee the right to sue the
employer when the employer acts in a capacity other than that of employer.
✔✔Workers Compensation and Employers Liability Insurance Policy (WCEL policy) -
✔✔The policy used in most states to provide workers compensation and employers
liability insurance.
✔✔Workers compensation insurance - ✔✔Insurance that provides coverage for benefits
an employer is obligated to pay under workers compensation laws.
✔✔Employers liability insurance - ✔✔Insurance that protects an employer against
employee injury claims that are not covered by workers compensation laws.
AND ANSWERS RATED A+
✔✔Adverse selection - ✔✔The tendency of those most likely to experience loss to be
the most likely to purchase insurance.
✔✔Nonowned auto - ✔✔An auto defined by the Business Auto Coverage Form as not
owned, leased, hired, rented, or borrowed by the named insured.
✔✔Businessowners policy (BOP) - ✔✔A package policy that combines most of the
property and liability coverages needed by small and medium-size businesses.
✔✔Instrumentalities of transportation and communication - ✔✔Equipment and
structures used to transmit communications and transport property, such as bridges,
tunnels, piers, wharves, pipelines, cranes and other equipment for loading and
unloading, transmission lines, and radio and television equipment.
✔✔Dealers policy - ✔✔A policy that covers the inventory and other property of any of
the types of dealers that qualify for inland marine coverage (such as jewelers,
equipment dealers, fine arts dealers, and furriers).
✔✔Bailee - ✔✔The party temporarily possessing the personal property in a bailment.
✔✔Contractors equipment floater - ✔✔A policy that covers mobile equipment or tools
while located anywhere in the coverage territory.
✔✔Motor truck cargo liability policy - ✔✔Policy that covers a trucker's liability for
damage to cargo of others being transported by the trucker.
✔✔Trip transit policy - ✔✔Policy that covers a particular shipment of goods specified in
the policy.
, ✔✔Annual transit policy - ✔✔Policy that covers all shipments made or received by the
insured throughout a one-year policy period.
✔✔Inland marine insurance - ✔✔Insurance that covers many different classes of
property that typically involve an element of transportation.
✔✔Loss-Sustained Form - ✔✔Form that covers losses actually sustained during the
policy period and discovered no later than one year after policy expiration.
✔✔Discovery Form - ✔✔Form that covers losses discovered during the policy period
even though they may have occurred before the policy period.
✔✔Fired pressure vessel - ✔✔A closed container that is heated by the direct fire of
burning fuel and can withstand internal pressure.
✔✔Boiler - ✔✔A fired pressure vessel constructed of cast iron or steel in which water is
heated to produce steam or hot water.
✔✔Excess liability policy - ✔✔A policy that covers liability claims in excess of the limits
of an underlying policy or a stated retention amount.
✔✔Umbrella policy - ✔✔A liability policy that provides excess coverage above
underlying policies and may also provide coverage not available in the underlying
policies, subject to a self-insured retention.
✔✔Aggregate limit - ✔✔The maximum amount an insurer will pay for all covered losses
during the covered policy period.
✔✔Occurrence coverage trigger - ✔✔The event that triggers coverage under an
occurrence coverage form: injury or damage that occurs during the policy period.
✔✔Dual capacity - ✔✔A legal doctrine giving the employee the right to sue the
employer when the employer acts in a capacity other than that of employer.
✔✔Workers Compensation and Employers Liability Insurance Policy (WCEL policy) -
✔✔The policy used in most states to provide workers compensation and employers
liability insurance.
✔✔Workers compensation insurance - ✔✔Insurance that provides coverage for benefits
an employer is obligated to pay under workers compensation laws.
✔✔Employers liability insurance - ✔✔Insurance that protects an employer against
employee injury claims that are not covered by workers compensation laws.
