AINS 103 Study Guide 2026/2027 | Latest
Exam Questions and Verified Answers
A commercial building may contain furniture, machinery and equipment and
finished products. Which one of the following is the term generally used in
property insurance policies to refer to all these types of property?
A. Stock
B. Inventory
C. Business personal property
D. Commercial property - correct answer-C. Business personal property
In business income insurance, the expenses that an organization would not have
incurred if the business interruption had not occurred are called
A. Continuing expenses.
B. Contingent expenses.
C. Extra expenses
D. Excludable expenses. - correct answer-C. Extra expenses
XYZ contractor, covered under an unendorsed Commercial General Liability (CGL)
Coverage Form, is installing kitchen cabinets in a customer's home. The contractor
,manufactured the cabinets. While the contractor is fastening a cabinet, it falls and
injures the customer. Which one of the following best explains how coverage
under the contractor's CGL Coverage Form applies in this case?
A. Premises and operations liability applies because the contractor was in the
process of installing the cabinets.
B. Products and completed operations liability applies because the contractor was
completing the work.
C. Products and completed operations liability applies because the contractor was
installing cabinets it manufactured.
D. Premises and operations liability applies because the contractor was working at
the customer's premises. - correct answer-A. Premises and operations liability
applies because the contractor was in the process of installing the cabinets.
Which one of the following is an example of injury or damage arising from an
occurrence that would be covered by the products and completed operations
liability portion of the Commercial General Liability (CGL) Coverage Form?
A. A defective gas range manufactured by the insured explodes causing injury.
B. A customer is injured when she slips on a wet floor in a store.
C. A dissatisfied customer sues an insured for slander.
D. A customer's house is set on fire while the insured is doing plumbing work. -
correct answer-B. A customer is injured when she slips on a wet floor in a store.
Inland marine insurance is insurance that covers
A. Miscellaneous lines such as burglary, glass, and steam boilers.
B. Many different classes of property that typically involve an element of
transportation on land.
, C. Businesses that own or operate watercraft, or import or export goods.
D. Companies that ship goods by commercial vessel on inland waterways. -
correct answer-B. Many different classes of property that typically involve an
element of transportation on land.
Joe signs a contract with Home Builders to install the electrical wiring for a new
home. He uses his own tools and follows the specifications in the contract. Joe is
burned while installing the wiring. Does Home Builders' workers compensation
policy cover Joe's injury?
A. No, because Joe probably contributed to the injury
B. No, because Joe is not an employee of Home Builders
C. Yes, because Home Builders must provide no-fault protection for employees
D. Yes, because the injury arose out of and in the course of employment - correct
answer-B. No, because Joe is not an employee of Home Builders
Which one of the following supply chain exposures can a business mitigate by
carefully wording contracts and diversifying suppliers?
A. Changes in demand
B. Loss of supply due to external events
C. Strikes or other employment issues
D. Production bottlenecks - correct answer-B. Loss of supply due to external
events
Exam Questions and Verified Answers
A commercial building may contain furniture, machinery and equipment and
finished products. Which one of the following is the term generally used in
property insurance policies to refer to all these types of property?
A. Stock
B. Inventory
C. Business personal property
D. Commercial property - correct answer-C. Business personal property
In business income insurance, the expenses that an organization would not have
incurred if the business interruption had not occurred are called
A. Continuing expenses.
B. Contingent expenses.
C. Extra expenses
D. Excludable expenses. - correct answer-C. Extra expenses
XYZ contractor, covered under an unendorsed Commercial General Liability (CGL)
Coverage Form, is installing kitchen cabinets in a customer's home. The contractor
,manufactured the cabinets. While the contractor is fastening a cabinet, it falls and
injures the customer. Which one of the following best explains how coverage
under the contractor's CGL Coverage Form applies in this case?
A. Premises and operations liability applies because the contractor was in the
process of installing the cabinets.
B. Products and completed operations liability applies because the contractor was
completing the work.
C. Products and completed operations liability applies because the contractor was
installing cabinets it manufactured.
D. Premises and operations liability applies because the contractor was working at
the customer's premises. - correct answer-A. Premises and operations liability
applies because the contractor was in the process of installing the cabinets.
Which one of the following is an example of injury or damage arising from an
occurrence that would be covered by the products and completed operations
liability portion of the Commercial General Liability (CGL) Coverage Form?
A. A defective gas range manufactured by the insured explodes causing injury.
B. A customer is injured when she slips on a wet floor in a store.
C. A dissatisfied customer sues an insured for slander.
D. A customer's house is set on fire while the insured is doing plumbing work. -
correct answer-B. A customer is injured when she slips on a wet floor in a store.
Inland marine insurance is insurance that covers
A. Miscellaneous lines such as burglary, glass, and steam boilers.
B. Many different classes of property that typically involve an element of
transportation on land.
, C. Businesses that own or operate watercraft, or import or export goods.
D. Companies that ship goods by commercial vessel on inland waterways. -
correct answer-B. Many different classes of property that typically involve an
element of transportation on land.
Joe signs a contract with Home Builders to install the electrical wiring for a new
home. He uses his own tools and follows the specifications in the contract. Joe is
burned while installing the wiring. Does Home Builders' workers compensation
policy cover Joe's injury?
A. No, because Joe probably contributed to the injury
B. No, because Joe is not an employee of Home Builders
C. Yes, because Home Builders must provide no-fault protection for employees
D. Yes, because the injury arose out of and in the course of employment - correct
answer-B. No, because Joe is not an employee of Home Builders
Which one of the following supply chain exposures can a business mitigate by
carefully wording contracts and diversifying suppliers?
A. Changes in demand
B. Loss of supply due to external events
C. Strikes or other employment issues
D. Production bottlenecks - correct answer-B. Loss of supply due to external
events
