AINS 103 FINAL PRACTICE EXAM| COMPLETE QUESTIONS WITH 100% RATED
EXPERT SOLUTIONS |2026 LATEST UPDATED
1. Workers compensation benefits include which one of the following?: Rehabilitation benefits
2. When a clothing manufacturer decides to expand the sale of its clothing line by offering internet purchases, it
creates new exposures not otherwise covered, or not fully covered, by a traditional policy. These include: Loss or
damage caused by computer viruses.
3. Which one of the following supply chain exposures can a business mitigate by carefully wording contracts and
diversifying suppliers?: Loss of supply due to external events
4. The commercial property coverage part of a commercial package policy
contains one or more commercial property coverage forms. Each coverage form typically includes all of the following,
EXCEPT:: A range of covered peril
5. Which one of the following statements best describes the Causes of
Loss—Special Form?: The Special Form provides coverage for direct physical losses other than those that are specifically
excluded.
6. Which one of the following best describes real property?: Tangible property that includes land, structures
permanently attached to the land, and whatever is growing on the land.
7. During a business interruption, some of the organization's expenses, called continuing expenses, will continue,
and other expenses, called noncontinuing expenses, will not continue. Which one of the following is an example of a
continuing expense?: Payroll of key employees
8. A vehicle owner had a tire store install four new wheels and tires on the vehicle. On the way home from the store,
one of the wheels came off, causing the vehicle to accidentally run off the road and strike a tree. The vehicle owner
, sued the tire store for failing to properly tighten the lug nuts on the vehicle. The loss exposure faced by the tire store
in this case is known as: Completed operations liability.
9. Which one of the following entities would likely have the greatest completed operations loss exposure?: Paul the
plumber
10. 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: The compensation the carrier receives for transporting cargo.
11. Which one of the following statements is correct with respect to the Building and Personal Property Coverage
Form (BPP) deductible?: If an occurrence involves
a loss that affects more than one category of covered property and a separate limit of insurance applies to each category,
losses to all categories are totaled and the deductible applied to that total amount.
12. Which one of the following statements is correct with respect to the Building and Personal Property Coverage
Form (BPP)?: Due to coverage extensions, it is possible for the total payment for one loss to exceed the policy limit.
13. Which one of the following would be considered an extra expense under
the Business Income (and Extra Expense) Coverage Form of the commercial package policy?: The increased cost of rent
at a temporary location
14. Dooley's Restaurant is insured under a commercial package policy (CPP) with the Business Income (with Extra
Expense) Coverage Form. The business suffered a $400,000 loss of business income when it was forced to suspend
operations after flood waters damaged the basement and first floor of the restaurant. Which one of the following is
an acceptable reason for the CPP
insurer to deny the business income claim?: The policy's covered causes of loss did not include flood.
15. Lucy's Bakery is insured under a commercial package policy with the Business Income (and Extra Expense)
Coverage Form. A fire loss caused significant damage to the building. When Lucy learned that it would take 9 months
to repair the building, she decided to temporarily relocate to a nearby rental location. All of the following would be
, considered covered extra expenses under the Business Income (and Extra Expense) Coverage Form, EXCEPT:: The
salary of the assistant baker and cake decorator
16. Richard's Clothing Store has a $500,000 Business Income (and Extra Expense) Coverage Form on which there
is an 80 percent coinsurance clause. A fire swept through the store. Richard's Clothing Store estimates that its net
income plus all operating expenses for the policy period would have been $1,875,000. The estimated business income
loss is $300,000. How much will the insurer pay?: $100,000
17 Suzanne is a commercial lines underwriter. Which one of the following components of the general liability coverage
forms would she use to tailor the form to meet the specialized needs of an insured?: Endorsements
18. Under Coverage A of the commercial general liability coverage form (CGL), property damage would include all
of the following, EXCEPT:: Infringement of copyright
19. Leslie suffered a severe burn to her hand when her microwave oven manufactured by LH Appliances caught fire.
The fire also caused damage to her kitchen cabinets. Two years later, Leslie decided to file a suit against the
manufacturer when she learned that microwaves manufactured by LH Appliances had been found responsible for
several other fires. LH Appliances was insured by an occurrence version of the commercial general liability (CGL)
coverage form with no deductible or endorsements. Which one of the following correctly describes how LH
Appliances' CGL will apply to the claim?: The CGL will defend the insured, and pay both for both the bodily injury
and damages to the cabinets if found liable.
20. 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?: Material published prior to the policy period
EXPERT SOLUTIONS |2026 LATEST UPDATED
1. Workers compensation benefits include which one of the following?: Rehabilitation benefits
2. When a clothing manufacturer decides to expand the sale of its clothing line by offering internet purchases, it
creates new exposures not otherwise covered, or not fully covered, by a traditional policy. These include: Loss or
damage caused by computer viruses.
3. Which one of the following supply chain exposures can a business mitigate by carefully wording contracts and
diversifying suppliers?: Loss of supply due to external events
4. The commercial property coverage part of a commercial package policy
contains one or more commercial property coverage forms. Each coverage form typically includes all of the following,
EXCEPT:: A range of covered peril
5. Which one of the following statements best describes the Causes of
Loss—Special Form?: The Special Form provides coverage for direct physical losses other than those that are specifically
excluded.
6. Which one of the following best describes real property?: Tangible property that includes land, structures
permanently attached to the land, and whatever is growing on the land.
7. During a business interruption, some of the organization's expenses, called continuing expenses, will continue,
and other expenses, called noncontinuing expenses, will not continue. Which one of the following is an example of a
continuing expense?: Payroll of key employees
8. A vehicle owner had a tire store install four new wheels and tires on the vehicle. On the way home from the store,
one of the wheels came off, causing the vehicle to accidentally run off the road and strike a tree. The vehicle owner
, sued the tire store for failing to properly tighten the lug nuts on the vehicle. The loss exposure faced by the tire store
in this case is known as: Completed operations liability.
9. Which one of the following entities would likely have the greatest completed operations loss exposure?: Paul the
plumber
10. 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: The compensation the carrier receives for transporting cargo.
11. Which one of the following statements is correct with respect to the Building and Personal Property Coverage
Form (BPP) deductible?: If an occurrence involves
a loss that affects more than one category of covered property and a separate limit of insurance applies to each category,
losses to all categories are totaled and the deductible applied to that total amount.
12. Which one of the following statements is correct with respect to the Building and Personal Property Coverage
Form (BPP)?: Due to coverage extensions, it is possible for the total payment for one loss to exceed the policy limit.
13. Which one of the following would be considered an extra expense under
the Business Income (and Extra Expense) Coverage Form of the commercial package policy?: The increased cost of rent
at a temporary location
14. Dooley's Restaurant is insured under a commercial package policy (CPP) with the Business Income (with Extra
Expense) Coverage Form. The business suffered a $400,000 loss of business income when it was forced to suspend
operations after flood waters damaged the basement and first floor of the restaurant. Which one of the following is
an acceptable reason for the CPP
insurer to deny the business income claim?: The policy's covered causes of loss did not include flood.
15. Lucy's Bakery is insured under a commercial package policy with the Business Income (and Extra Expense)
Coverage Form. A fire loss caused significant damage to the building. When Lucy learned that it would take 9 months
to repair the building, she decided to temporarily relocate to a nearby rental location. All of the following would be
, considered covered extra expenses under the Business Income (and Extra Expense) Coverage Form, EXCEPT:: The
salary of the assistant baker and cake decorator
16. Richard's Clothing Store has a $500,000 Business Income (and Extra Expense) Coverage Form on which there
is an 80 percent coinsurance clause. A fire swept through the store. Richard's Clothing Store estimates that its net
income plus all operating expenses for the policy period would have been $1,875,000. The estimated business income
loss is $300,000. How much will the insurer pay?: $100,000
17 Suzanne is a commercial lines underwriter. Which one of the following components of the general liability coverage
forms would she use to tailor the form to meet the specialized needs of an insured?: Endorsements
18. Under Coverage A of the commercial general liability coverage form (CGL), property damage would include all
of the following, EXCEPT:: Infringement of copyright
19. Leslie suffered a severe burn to her hand when her microwave oven manufactured by LH Appliances caught fire.
The fire also caused damage to her kitchen cabinets. Two years later, Leslie decided to file a suit against the
manufacturer when she learned that microwaves manufactured by LH Appliances had been found responsible for
several other fires. LH Appliances was insured by an occurrence version of the commercial general liability (CGL)
coverage form with no deductible or endorsements. Which one of the following correctly describes how LH
Appliances' CGL will apply to the claim?: The CGL will defend the insured, and pay both for both the bodily injury
and damages to the cabinets if found liable.
20. 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?: Material published prior to the policy period
