AINS 103 EXAM| COMPLETE QUESTIONS WITH 100% RATED
EXPERT SOLUTIONS |2026 LATEST UPDATED
While performing duties for the business, all of the following would be an insured under
Business Liability Coverage of a partnership's businessowners policy (BOP), EXCEPT: -
(answer)All executive officers of an LLC.
Which one of the following would be covered under the Extra Expense insuring agreement of the
Business Income (and Extra Expense) Coverage Form? - (answer)Costs to move office
equipment to a substitute location.
An intangible asset resulting from a collection of perceptions and opinions, past and present,
about an organization that resides in the consciousness of its stakeholders is known as an
organization's: - (answer)Reputation.
Ivan is a commercial insurance producer looking to expand his book of business. He is
researching local businesses trying to determine which businesses might be eligible for the
businessowners policy (BOP) and which would not be eligible. Which one of the following
businesses would be ineligible for BOP coverage? - (answer)Amusement parks are generally not
eligible for BOP coverage. Retail stores, small restaurants with limited cooking, and trade
contractors are generally eligible for BOP coverage.
Marlene is a producer for East Goshen Mutual. She recently met with the owners of Sugartown
Farms to try and determine if they are eligible for the ISO businessowners policy (BOP). Which
one of the following facts about Sugartown Farms would prevent it from being eligible for the
BOP? - (answer)Sugartown Farms has a restaurant with a bar for local patrons.
Sugartown Industries insures its building and personal property under the commercial property
coverage part of a commercial package policy (CPP). Following a lightning storm, a portion of
the building was damaged from a small fire. The operations 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 operations manager with
information on the covered perils? - (answer)The causes of loss form. The three types of cause of
,loss forms - Basic, Broad, and Special - allow the insured to select, or the underwriter to offer, a
range of covered perils.
Under the Commercial General Liability (CGL) Coverage Form, medical payments coverage
applies to which one of the following situations? - (answer)Sara is a volunteer helping the named
insured clean up their grounds.
Which one of the following causes of loss is covered by the commercial property policy Causes
of Loss—Broad Form but not the Basic Form? - (answer)Falling objects.
The Property Custody Company (PCC) stores customer property for a fee. PCC is insured under
a bailees' customers policy. One day, due to the negligence of an unrelated party and not due to
any negligence of PCC, property owned by one of PCC's customers is destroyed while in PCC's
custody. Which one of the following describes how PCC's insurer will handle the claim for the
damage to PCC's customer's property under PCC's bailees' customers policy? - (answer)It will
pay the claim because PCC's policy covers damage to customers' goods in its possession
regardless of negligence.
A private company posted a video on the internet introducing a new product. The music used in
the video was from a copyrighted song. When the company sought coverage under Part B of
their Commercial General Liability (CGL) Coverage Form after a claim was filed against them
for damages, coverage will most likely be excluded based on which one of the following
exclusions? - (answer)Coverage for infringement of copyright, patent, trademarks, or trade secret
are excluded unless it occurs in an advertisement exclusion.
Devon Distributing purchased smart watches for all their long haul drivers. The devices were
monitored from the headquarters so the location of the driver was always known to Devon
management. The watches could also send text messages and accept phone calls, so there was
constant communication. This allowed Devon management to respond immediately in the event
of an emergency or failure of a vehicle. This network is an example of: - (answer)The Internet of
Things.
Business income insurance covers which one of the following types of losses that could result
from a fire? - (answer)The extra expenses for renting a temporary office.
, Smith Stores had net income of $5,000 per month in the 12 months before a covered business
income loss. The store is unable to reopen for three months. During that time, continuing
expenses totaled $6,000. What is the amount of Smith Stores' business income loss? -
(answer)$21,000. The business was interrupted for three months, for a business income loss of
$15,000, plus continuing expenses of $6,000, equals $21,000.
The Paoli Power Shop has its building and business personal property insured under a
businessowners policy (BOP). Torrential rainstorms caused a nearby river to overflow its banks
and flood the area. The flood caused significant water damage to both the building and personal
property. Which one of the following would be true under the BOP? - (answer)The water damage
would not be covered.
Like all policies, the BOP property policy specifies causes of loss that limit or exclude coverage
to include flooding.
Which one of the following is an example of intangible property exposed to theft resulting from
a cyber attack? - (answer)Trade secrets.
Lawn Chemical Company applies fertilizer and weed killer to lawns and shrubs. Which one of
the following is a liability loss exposure to which Lawn Chemical Company likely has a
significant exposure? - (answer)Completed operations liability.
Which one of the following exposures would be best suited for businessowners policy (BOP)? -
(answer)An insured is considering upgrades to the furniture in the lobby of his business and
making computers with wi-fi available to customers while they wait.
Danforth Grocery Store specializes in fresh produce and is open 24 hours year-round. The store
has contracts with suppliers to deliver produce and foods by 5:00 a.m. daily, so the parking area
at the rear of the store is congested from 4:30 a.m. to 5:30 a.m. Customer traffic is heaviest from
7:00 a.m. to 9:00 a.m. and again from 3:00 p.m. to 6:00 p.m. The store has had six slip-and-fall
claims from customers in the past year. Danforth Grocery Store is most exposed to which one of
the following types of liability loss? - (answer)Premises liability.
EXPERT SOLUTIONS |2026 LATEST UPDATED
While performing duties for the business, all of the following would be an insured under
Business Liability Coverage of a partnership's businessowners policy (BOP), EXCEPT: -
(answer)All executive officers of an LLC.
Which one of the following would be covered under the Extra Expense insuring agreement of the
Business Income (and Extra Expense) Coverage Form? - (answer)Costs to move office
equipment to a substitute location.
An intangible asset resulting from a collection of perceptions and opinions, past and present,
about an organization that resides in the consciousness of its stakeholders is known as an
organization's: - (answer)Reputation.
Ivan is a commercial insurance producer looking to expand his book of business. He is
researching local businesses trying to determine which businesses might be eligible for the
businessowners policy (BOP) and which would not be eligible. Which one of the following
businesses would be ineligible for BOP coverage? - (answer)Amusement parks are generally not
eligible for BOP coverage. Retail stores, small restaurants with limited cooking, and trade
contractors are generally eligible for BOP coverage.
Marlene is a producer for East Goshen Mutual. She recently met with the owners of Sugartown
Farms to try and determine if they are eligible for the ISO businessowners policy (BOP). Which
one of the following facts about Sugartown Farms would prevent it from being eligible for the
BOP? - (answer)Sugartown Farms has a restaurant with a bar for local patrons.
Sugartown Industries insures its building and personal property under the commercial property
coverage part of a commercial package policy (CPP). Following a lightning storm, a portion of
the building was damaged from a small fire. The operations 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 operations manager with
information on the covered perils? - (answer)The causes of loss form. The three types of cause of
,loss forms - Basic, Broad, and Special - allow the insured to select, or the underwriter to offer, a
range of covered perils.
Under the Commercial General Liability (CGL) Coverage Form, medical payments coverage
applies to which one of the following situations? - (answer)Sara is a volunteer helping the named
insured clean up their grounds.
Which one of the following causes of loss is covered by the commercial property policy Causes
of Loss—Broad Form but not the Basic Form? - (answer)Falling objects.
The Property Custody Company (PCC) stores customer property for a fee. PCC is insured under
a bailees' customers policy. One day, due to the negligence of an unrelated party and not due to
any negligence of PCC, property owned by one of PCC's customers is destroyed while in PCC's
custody. Which one of the following describes how PCC's insurer will handle the claim for the
damage to PCC's customer's property under PCC's bailees' customers policy? - (answer)It will
pay the claim because PCC's policy covers damage to customers' goods in its possession
regardless of negligence.
A private company posted a video on the internet introducing a new product. The music used in
the video was from a copyrighted song. When the company sought coverage under Part B of
their Commercial General Liability (CGL) Coverage Form after a claim was filed against them
for damages, coverage will most likely be excluded based on which one of the following
exclusions? - (answer)Coverage for infringement of copyright, patent, trademarks, or trade secret
are excluded unless it occurs in an advertisement exclusion.
Devon Distributing purchased smart watches for all their long haul drivers. The devices were
monitored from the headquarters so the location of the driver was always known to Devon
management. The watches could also send text messages and accept phone calls, so there was
constant communication. This allowed Devon management to respond immediately in the event
of an emergency or failure of a vehicle. This network is an example of: - (answer)The Internet of
Things.
Business income insurance covers which one of the following types of losses that could result
from a fire? - (answer)The extra expenses for renting a temporary office.
, Smith Stores had net income of $5,000 per month in the 12 months before a covered business
income loss. The store is unable to reopen for three months. During that time, continuing
expenses totaled $6,000. What is the amount of Smith Stores' business income loss? -
(answer)$21,000. The business was interrupted for three months, for a business income loss of
$15,000, plus continuing expenses of $6,000, equals $21,000.
The Paoli Power Shop has its building and business personal property insured under a
businessowners policy (BOP). Torrential rainstorms caused a nearby river to overflow its banks
and flood the area. The flood caused significant water damage to both the building and personal
property. Which one of the following would be true under the BOP? - (answer)The water damage
would not be covered.
Like all policies, the BOP property policy specifies causes of loss that limit or exclude coverage
to include flooding.
Which one of the following is an example of intangible property exposed to theft resulting from
a cyber attack? - (answer)Trade secrets.
Lawn Chemical Company applies fertilizer and weed killer to lawns and shrubs. Which one of
the following is a liability loss exposure to which Lawn Chemical Company likely has a
significant exposure? - (answer)Completed operations liability.
Which one of the following exposures would be best suited for businessowners policy (BOP)? -
(answer)An insured is considering upgrades to the furniture in the lobby of his business and
making computers with wi-fi available to customers while they wait.
Danforth Grocery Store specializes in fresh produce and is open 24 hours year-round. The store
has contracts with suppliers to deliver produce and foods by 5:00 a.m. daily, so the parking area
at the rear of the store is congested from 4:30 a.m. to 5:30 a.m. Customer traffic is heaviest from
7:00 a.m. to 9:00 a.m. and again from 3:00 p.m. to 6:00 p.m. The store has had six slip-and-fall
claims from customers in the past year. Danforth Grocery Store is most exposed to which one of
the following types of liability loss? - (answer)Premises liability.
