Page 1 of 112
AINS 103 EXAM 1 2024-2025|| ACTUAL EXAM ALL
QUESTIONS AND CORRECT ANSWERS WITH
CLEAR EXPLANATIONS ALREADY GRADED A+||
RECENT UPDATE WITH VERIFIED SOLUTIONS||
BRAND NEW!!!
Which one of the following explains why an employer needs employer's liability
insurance in addition to workers compensation insurance and a commercial general
liability (CGL) insurance policy?
Select one:
A. To provide additional amounts of coverage
B. To cover claims not covered by workers compensation statute
C. To meet monetary requirements
D. To meet statutory requirements for payments to workers injured on the job -
ANSWER: B. To cover claims not covered by workers compensation statute
In equipment breakdown insurance, a fired pressure vessel constructed of cast iron
or steel in which water is heated to produce steam or hot water is a
Select one:
A. Boiler.
B. Compressor.
C. Gear set.
D. Turbine. - ANSWER: A. Boiler.
Which one of the following is an example of a loss covered by Employers Liability
Insurance?
Select one:
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A. An employee sues an employer for damages arising out of demotion,
evaluation, harassment, discrimination, or termination
B. An injured employee sues a third party who, in turn, sues the injured person's
employer for negligence that resulted in the injury
C. An employee files a claim due to injuries from a product manufactured by their
employer in a state that rejects the dual capacity doctrine
D. An employee is injured in an employment-related accident that occurs outside
of the United States, its territories and possessions, or Canada - ANSWER: B. An
injured employee sues a third party who, in turn, sues the injured person's
employer for negligence that resulted in the injury
Ella is a producer for Westfork Mutual. She recently met with the owners of The
White Canary Motel and is trying to determine if it is eligible for the ISO
businessowners policy (BOP). Which one of the following facts about The White
Canary Motel would prevent it from being eligible for the BOP?
Select one:
A. The White Canary Motel is a three-story structure.
B. The White Canary Motel has a small restaurant with 25 seats and limited
cooking.
C. The White Canary Motel has a total floor area of 40,000 square feet.
D. The White Canary Motel closes from January 1 to March 1 every year. -
ANSWER: D. The White Canary Motel closes from January 1 to March 1 every
year.
Hank is a new commercial insurance producer. He is walking down the main street
of Springfield trying to determine which businesses might be eligible for the
businessowners policy (BOP) and which would not be eligible. Which one of the
following main street businesses would be ineligible for BOP coverage?
Select one:
A. Kelly Plumbing
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B. Springfield Bank
C. Rose's Dress Shop
D. Ted's Coffee Shop - ANSWER: B. Springfield Bank
Which one of the following statements about the BOP is true?
Select one:
A. It provides liability coverage only.
B. It provides property coverage only.
C. It is designed for large businesses.
D. It is designed for small to mid-sized business. - ANSWER: D. It is designed
for small to mid-sized business.
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:
Description
Amount
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?
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Select one:
A. $49,000
B. $49,900
C. $54,000
D. $54,400 - ANSWER: D. $54,400
Glorious Gifts is a retail store located in a shopping center along with four other
retail tenants. It is insured under a businessowners policy (BOP) with a $300,000
limit for Personal Property and a $1,000 deductible. One day during business
hours, a fire started in the pizza shop next door and spread to Glorious Gifts.
Everyone was able to escape safely, but Glorious Gifts suffered the following
damages: $75,000 in store merchandise, $10,000 in shelving units that had been
installed, a $3,000 computer, and $1,500 in cash. How much will the BOP insurer
pay?
Select one:
A. $77,000
B. $87,000
C. $88,000
D. $88,500 - ANSWER: B. $87,000
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?
Select one:
A. The land that the building sits on
B. The outdoor lighting fixtures
C. Permanently installed fixtures and improvements paid for by tenants
D. The security fence that surrounds the building - ANSWER: B. The outdoor
lighting fixtures
AINS 103 EXAM 1 2024-2025|| ACTUAL EXAM ALL
QUESTIONS AND CORRECT ANSWERS WITH
CLEAR EXPLANATIONS ALREADY GRADED A+||
RECENT UPDATE WITH VERIFIED SOLUTIONS||
BRAND NEW!!!
Which one of the following explains why an employer needs employer's liability
insurance in addition to workers compensation insurance and a commercial general
liability (CGL) insurance policy?
Select one:
A. To provide additional amounts of coverage
B. To cover claims not covered by workers compensation statute
C. To meet monetary requirements
D. To meet statutory requirements for payments to workers injured on the job -
ANSWER: B. To cover claims not covered by workers compensation statute
In equipment breakdown insurance, a fired pressure vessel constructed of cast iron
or steel in which water is heated to produce steam or hot water is a
Select one:
A. Boiler.
B. Compressor.
C. Gear set.
D. Turbine. - ANSWER: A. Boiler.
Which one of the following is an example of a loss covered by Employers Liability
Insurance?
Select one:
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A. An employee sues an employer for damages arising out of demotion,
evaluation, harassment, discrimination, or termination
B. An injured employee sues a third party who, in turn, sues the injured person's
employer for negligence that resulted in the injury
C. An employee files a claim due to injuries from a product manufactured by their
employer in a state that rejects the dual capacity doctrine
D. An employee is injured in an employment-related accident that occurs outside
of the United States, its territories and possessions, or Canada - ANSWER: B. An
injured employee sues a third party who, in turn, sues the injured person's
employer for negligence that resulted in the injury
Ella is a producer for Westfork Mutual. She recently met with the owners of The
White Canary Motel and is trying to determine if it is eligible for the ISO
businessowners policy (BOP). Which one of the following facts about The White
Canary Motel would prevent it from being eligible for the BOP?
Select one:
A. The White Canary Motel is a three-story structure.
B. The White Canary Motel has a small restaurant with 25 seats and limited
cooking.
C. The White Canary Motel has a total floor area of 40,000 square feet.
D. The White Canary Motel closes from January 1 to March 1 every year. -
ANSWER: D. The White Canary Motel closes from January 1 to March 1 every
year.
Hank is a new commercial insurance producer. He is walking down the main street
of Springfield trying to determine which businesses might be eligible for the
businessowners policy (BOP) and which would not be eligible. Which one of the
following main street businesses would be ineligible for BOP coverage?
Select one:
A. Kelly Plumbing
,Page 3 of 112
B. Springfield Bank
C. Rose's Dress Shop
D. Ted's Coffee Shop - ANSWER: B. Springfield Bank
Which one of the following statements about the BOP is true?
Select one:
A. It provides liability coverage only.
B. It provides property coverage only.
C. It is designed for large businesses.
D. It is designed for small to mid-sized business. - ANSWER: D. It is designed
for small to mid-sized business.
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:
Description
Amount
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?
, Page 4 of 112
Select one:
A. $49,000
B. $49,900
C. $54,000
D. $54,400 - ANSWER: D. $54,400
Glorious Gifts is a retail store located in a shopping center along with four other
retail tenants. It is insured under a businessowners policy (BOP) with a $300,000
limit for Personal Property and a $1,000 deductible. One day during business
hours, a fire started in the pizza shop next door and spread to Glorious Gifts.
Everyone was able to escape safely, but Glorious Gifts suffered the following
damages: $75,000 in store merchandise, $10,000 in shelving units that had been
installed, a $3,000 computer, and $1,500 in cash. How much will the BOP insurer
pay?
Select one:
A. $77,000
B. $87,000
C. $88,000
D. $88,500 - ANSWER: B. $87,000
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?
Select one:
A. The land that the building sits on
B. The outdoor lighting fixtures
C. Permanently installed fixtures and improvements paid for by tenants
D. The security fence that surrounds the building - ANSWER: B. The outdoor
lighting fixtures
