AINS 103 (ASSOCIATE IN GENERAL INSURANCE) -
EXAMINATION COMPLETE QUESTIONS AND DETAILED
SOLUTIONS LATEST UPDATE THIS YEAR JUST RELEASED
Question 1: Julian is the owner of The Clock Shop, a retail store
selling a wide variety of clocks for the home and office. He leases
the space in a shopping center that contains three other retail
stores. The Clock Shop is covered under a businessowners policy
(BOP) with a $200,000 limit of insurance for its business personal
property and a $1,000 deductible. Julian did not purchase any
optional coverages. One evening a fire broke out in one of the
neighboring stores, and spread to The Clock Shop. The Clock Shop
claimed the following damages: Damage to merchandise on display
and in storage: $50,000 Damage to a computer and printer in the
office area: $4,500 Damage to a personalized sign attached to the
building: $900 How much will the BOP insurer pay for this loss?
A. $49,000
B. $49,900
C. $54,000
D. $54,400
Answer:
D. $54,400
Question 2: = $50,000 +4,500 + 900 - 1,000 = $54,400 The Neopolitan
is insured under a businessowners policy (BOP) for both building
and business personal property. Which one of the following would
be covered under the definition of a building under The
Neopolitan's BOP?
A. The security fence that surrounds the building
B. Permanently installed fixtures and improvements paid for by
tenants
, C. The land that the building sits on
D. The outdoor lighting fixtures
Answer:
D. The outdoor lighting fixtures
Question 3: Hope Hardware is insured under a businessowners
policy (BOP) with a $250,000 limit for Business Liability Coverage.
A customer tripped over a box in one of the aisles, and struck her
head on a shelf. The customer filed a suit against Hope Hardware
for medical expenses, pain and suffering, and lost wages. The BOP
insurer spent $25,000 defending Hope Hardware in court, but the
customer ended up being awarded $230,000. The court also
assigned $2,500 in prejudgment interest. What is the total amount
that Hope Hardware's BOP insurer will pay for this claim?
A. $230,000
B. $250,000
C. $255,000
D. $257,500
Answer:
D. $257,500
Question 4: = $230,000 + $25,000 + $2,500 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:
A. Employees
B. Stockholders
C. Spouses of the partners
D. Partners
Answer:
B. Stockholders
,Question 5: The medical expense coverage under Business Section
II-Liability Coverage of the ISO businessowners policy (BOP) would
cover small and reasonable medical claims for which one of the
following?
A. The insured's spouse
B. Employees of the insured organization
C. Injured customers requiring hospitalization.
D. Volunteer workers at the insured organization
Answer:
D. Volunteer workers at the insured organization
Question 6: The insured's spouse is a NI The employee is excluded
due to workers comp Customers If requiring hospitalization, the
medical expenses may be too high to be covered under Med Pau
One way in which producers can help clients identify supply chain
risk is through Select one:A. Outsourcing.
B. Single-source vendors.
C. Market globalization.
D. The use of flowcharts.
Answer:
D. The use of flowcharts.
Question 7: Which one of the following is the main source of the
data used in the process mining of the claims process?
A. Social media networks
B. Financial reports
C. Claim activity logs
D. Claims audits
Answer:
C. Claim activity logs
, Question 8: Which one of the following statements regarding
process mining is true?
A. Process mining is the same as typical data mining in that both
apply results to a specific area.
B. Process mining differs from typical data mining in that process
mining applies results to an entire process.
C. Process mining cannot usually be applied effectively to the claims
handling process.
D. Process mining is applied to claims to verify whether the
settlement amount was correct.
Answer:
B. Process mining differs from typical data mining in that process mining applies results to
an entire process.
Question 9: Finsihed attempt 2 need to do 3-5 incorrect math notes
Answer:
For most businesses, which one of the following is the peril that poses the greatest risk of
a large or total property loss?
A. Windstorm
B. Earthquake
C. Fire
D. Flood
Question 11: 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?
A. Payroll of key employees
B. Cost of overnight air shipment of needed repair parts
C. Cost to rent temporary office space
D. Overtime wages to employees
EXAMINATION COMPLETE QUESTIONS AND DETAILED
SOLUTIONS LATEST UPDATE THIS YEAR JUST RELEASED
Question 1: Julian is the owner of The Clock Shop, a retail store
selling a wide variety of clocks for the home and office. He leases
the space in a shopping center that contains three other retail
stores. The Clock Shop is covered under a businessowners policy
(BOP) with a $200,000 limit of insurance for its business personal
property and a $1,000 deductible. Julian did not purchase any
optional coverages. One evening a fire broke out in one of the
neighboring stores, and spread to The Clock Shop. The Clock Shop
claimed the following damages: Damage to merchandise on display
and in storage: $50,000 Damage to a computer and printer in the
office area: $4,500 Damage to a personalized sign attached to the
building: $900 How much will the BOP insurer pay for this loss?
A. $49,000
B. $49,900
C. $54,000
D. $54,400
Answer:
D. $54,400
Question 2: = $50,000 +4,500 + 900 - 1,000 = $54,400 The Neopolitan
is insured under a businessowners policy (BOP) for both building
and business personal property. Which one of the following would
be covered under the definition of a building under The
Neopolitan's BOP?
A. The security fence that surrounds the building
B. Permanently installed fixtures and improvements paid for by
tenants
, C. The land that the building sits on
D. The outdoor lighting fixtures
Answer:
D. The outdoor lighting fixtures
Question 3: Hope Hardware is insured under a businessowners
policy (BOP) with a $250,000 limit for Business Liability Coverage.
A customer tripped over a box in one of the aisles, and struck her
head on a shelf. The customer filed a suit against Hope Hardware
for medical expenses, pain and suffering, and lost wages. The BOP
insurer spent $25,000 defending Hope Hardware in court, but the
customer ended up being awarded $230,000. The court also
assigned $2,500 in prejudgment interest. What is the total amount
that Hope Hardware's BOP insurer will pay for this claim?
A. $230,000
B. $250,000
C. $255,000
D. $257,500
Answer:
D. $257,500
Question 4: = $230,000 + $25,000 + $2,500 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:
A. Employees
B. Stockholders
C. Spouses of the partners
D. Partners
Answer:
B. Stockholders
,Question 5: The medical expense coverage under Business Section
II-Liability Coverage of the ISO businessowners policy (BOP) would
cover small and reasonable medical claims for which one of the
following?
A. The insured's spouse
B. Employees of the insured organization
C. Injured customers requiring hospitalization.
D. Volunteer workers at the insured organization
Answer:
D. Volunteer workers at the insured organization
Question 6: The insured's spouse is a NI The employee is excluded
due to workers comp Customers If requiring hospitalization, the
medical expenses may be too high to be covered under Med Pau
One way in which producers can help clients identify supply chain
risk is through Select one:A. Outsourcing.
B. Single-source vendors.
C. Market globalization.
D. The use of flowcharts.
Answer:
D. The use of flowcharts.
Question 7: Which one of the following is the main source of the
data used in the process mining of the claims process?
A. Social media networks
B. Financial reports
C. Claim activity logs
D. Claims audits
Answer:
C. Claim activity logs
, Question 8: Which one of the following statements regarding
process mining is true?
A. Process mining is the same as typical data mining in that both
apply results to a specific area.
B. Process mining differs from typical data mining in that process
mining applies results to an entire process.
C. Process mining cannot usually be applied effectively to the claims
handling process.
D. Process mining is applied to claims to verify whether the
settlement amount was correct.
Answer:
B. Process mining differs from typical data mining in that process mining applies results to
an entire process.
Question 9: Finsihed attempt 2 need to do 3-5 incorrect math notes
Answer:
For most businesses, which one of the following is the peril that poses the greatest risk of
a large or total property loss?
A. Windstorm
B. Earthquake
C. Fire
D. Flood
Question 11: 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?
A. Payroll of key employees
B. Cost of overnight air shipment of needed repair parts
C. Cost to rent temporary office space
D. Overtime wages to employees
