AINS 103 UPDATED EXAMS SET QUESTIONS AND
ANSWERS RATED A+
✔✔The Workers Compensation and Employers Liability Insurance Policy provides that
the insured is responsible to reimburse the insurer in which one of the following
situations? - ✔✔D. Penalties levied under a workers compensation law against the
insured for noncompliance with health and safety laws and regulations.
✔✔Entities eligible for financial institution bonds are - ✔✔D. Not eligible for the ISO
Commercial Crime Program.
✔✔Which one of the following policies would respond to a furnace explosion? - ✔✔B.
Commercial property policy
✔✔With advancements in technology, underwriting data is becoming increasingly
abundant and more reliable. Which one of the following is an example of how
technological advancements are changing underwriting? - ✔✔D. Olivia has been asked
to spend the next week analyzing unique risks presented by specialized accounts.
✔✔Considering the claims process, which one of the following data analysis methods
begins with data analysis of claims activity logs to identify steps taken for claims and the
timing of them? - ✔✔A. Process mining
✔✔ In property insurance, the term "property in transit" refers to which one of the
following? - ✔✔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? - ✔✔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 claim? - ✔✔B. Premises and operations liability
✔✔Which one of the following entities would likely have the greatest completed
operations loss exposure? - ✔✔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 - ✔✔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? - ✔✔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? - ✔✔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 - ✔✔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? - ✔✔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? - ✔✔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? -
✔✔$275K
✔✔Which one of the following statements about Inflation Guard optional coverage of
the Building and Personal Property Coverage Form (BPP) is true? - ✔✔C. It is
ANSWERS RATED A+
✔✔The Workers Compensation and Employers Liability Insurance Policy provides that
the insured is responsible to reimburse the insurer in which one of the following
situations? - ✔✔D. Penalties levied under a workers compensation law against the
insured for noncompliance with health and safety laws and regulations.
✔✔Entities eligible for financial institution bonds are - ✔✔D. Not eligible for the ISO
Commercial Crime Program.
✔✔Which one of the following policies would respond to a furnace explosion? - ✔✔B.
Commercial property policy
✔✔With advancements in technology, underwriting data is becoming increasingly
abundant and more reliable. Which one of the following is an example of how
technological advancements are changing underwriting? - ✔✔D. Olivia has been asked
to spend the next week analyzing unique risks presented by specialized accounts.
✔✔Considering the claims process, which one of the following data analysis methods
begins with data analysis of claims activity logs to identify steps taken for claims and the
timing of them? - ✔✔A. Process mining
✔✔ In property insurance, the term "property in transit" refers to which one of the
following? - ✔✔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? - ✔✔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 claim? - ✔✔B. Premises and operations liability
✔✔Which one of the following entities would likely have the greatest completed
operations loss exposure? - ✔✔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 - ✔✔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? - ✔✔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? - ✔✔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 - ✔✔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? - ✔✔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? - ✔✔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? -
✔✔$275K
✔✔Which one of the following statements about Inflation Guard optional coverage of
the Building and Personal Property Coverage Form (BPP) is true? - ✔✔C. It is
