AINS103 Practice Exam Questions and
Answers
In property insurance, the term "Property in Transit" refers to
which one of the following? - Correct Answers ✅Property
while being transported by trucks, cars, buses, trains,
airplanes, and ships.
Extra expenses are expenses, in addition to ordinary
expenses, that an organization incurs to mitigate the effects
of a business interruption. Which one of the following is an
example of an extra expense? - Correct Answers ✅Cost to
rent temporary office space.
Upon entering a restaurant, a customer grasped a handrail
the broke off, causing the customer to fall and break his wrist.
This is an example of which one of the following types of
commercial general liability loss? - Correct Answers
✅Premises and operations liability.
A contractor is hired to install a new concrete sidewalk in
front of a store. Several weeks after the sidewalk was
installed, the concrete buckles and a passerby trips and falls
on the buckled sidewalk. The passerby sues the contractor to
recover medical expenses incurred due to the fall. This
commercial liability is categorized as - Correct Answers
✅Completed operations liability.
A carrier that is prevented by an accident from delivering the
cargo aboard its ship may face an exposure called loss of
,AINS103 Practice Exam Questions and
Answers
freight, which is - Correct Answers ✅The compensation the
carrier receives for transporting cargo.
The management of Maryland Marine Co. (MMC) must ensure
that proper coverage is obtained for work- related injuries.
The employee population of MMC is a mixture of full-time and
part-time employees as well as some casual employees for
one-time tasks. Much of MMC's work is done by independent
contractors and temporary employees during peak seasons.
Which one of the following statements about these persons is
true? - Correct Answers ✅Many states workers
compensation statutes exclude casual labor (temporary
employees).
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 - Correct Answers ✅Loss
or damage caused by computer virsuses.
Meat Products Company (MPC) runs packing plants in three
Midwest states. The company was in the news recently
because of its labor practices. The Department of Labor
(DOL) investigated complaints from five female employees
that MPC discriminated against them. The DOL found the
claim was true. The Immigration and Naturalization Service
(INS) found that the company employed illegal immigrants
and paid them less than the minimum wage. When this news
became public, MPC's reputation was severely harmed. This
,AINS103 Practice Exam Questions and
Answers
scenario illustrates which source of reputation risk - Correct
Answers ✅Regulatory and legal compliance.
Perils are an important aspect of property insurance. Which
one of the following statements is correct with respect to
perils? - Correct Answers ✅A peril is the actual means by
which property is damaged or destroyed such as fire,
lightning, windstorm, hail or theft.
During a business interruption, some of the organizations
expenses, called continuing expenses, will continue, and
other expenses, called non-continuing expenses, will not
continue. Which one of the following is an example of a
continuing expense? - Correct Answers ✅Payroll of key
employees.
Which one of the following loss exposure exist when a
business can be held legally liable for bodily injury or
property damaged caused by their repair or contracting
work? - Correct Answers ✅Completed operations liability.
Which one of the following entities would likely have the
greatest completed operations loss exposure? - Correct
Answers ✅Paul the plumber.
, AINS103 Practice Exam Questions and
Answers
Inland marine insurance is insurance that covers - Correct
Answers ✅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? - Correct Answers
✅No, because Joe is not an employee of Home Builders.
Cyber risk intellectual property loss exposures include -
Correct Answers ✅Cyber extortion of trade secrets.
As part of its assessment of its cyber risk, an organization
should consider whether there are any intangible property
exposures. Which one of the following would best be
classified as an intangible property loss? - Correct Answers
✅The computer system is hacked and data including credit
card numbers are stolen.
Property insurance policies use the term "personal property"
to refer to the - Correct Answers ✅Contents in and around
a building.
In business income insurance, the expenses that an
organization would not have incurred if the business
Answers
In property insurance, the term "Property in Transit" refers to
which one of the following? - Correct Answers ✅Property
while being transported by trucks, cars, buses, trains,
airplanes, and ships.
Extra expenses are expenses, in addition to ordinary
expenses, that an organization incurs to mitigate the effects
of a business interruption. Which one of the following is an
example of an extra expense? - Correct Answers ✅Cost to
rent temporary office space.
Upon entering a restaurant, a customer grasped a handrail
the broke off, causing the customer to fall and break his wrist.
This is an example of which one of the following types of
commercial general liability loss? - Correct Answers
✅Premises and operations liability.
A contractor is hired to install a new concrete sidewalk in
front of a store. Several weeks after the sidewalk was
installed, the concrete buckles and a passerby trips and falls
on the buckled sidewalk. The passerby sues the contractor to
recover medical expenses incurred due to the fall. This
commercial liability is categorized as - Correct Answers
✅Completed operations liability.
A carrier that is prevented by an accident from delivering the
cargo aboard its ship may face an exposure called loss of
,AINS103 Practice Exam Questions and
Answers
freight, which is - Correct Answers ✅The compensation the
carrier receives for transporting cargo.
The management of Maryland Marine Co. (MMC) must ensure
that proper coverage is obtained for work- related injuries.
The employee population of MMC is a mixture of full-time and
part-time employees as well as some casual employees for
one-time tasks. Much of MMC's work is done by independent
contractors and temporary employees during peak seasons.
Which one of the following statements about these persons is
true? - Correct Answers ✅Many states workers
compensation statutes exclude casual labor (temporary
employees).
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 - Correct Answers ✅Loss
or damage caused by computer virsuses.
Meat Products Company (MPC) runs packing plants in three
Midwest states. The company was in the news recently
because of its labor practices. The Department of Labor
(DOL) investigated complaints from five female employees
that MPC discriminated against them. The DOL found the
claim was true. The Immigration and Naturalization Service
(INS) found that the company employed illegal immigrants
and paid them less than the minimum wage. When this news
became public, MPC's reputation was severely harmed. This
,AINS103 Practice Exam Questions and
Answers
scenario illustrates which source of reputation risk - Correct
Answers ✅Regulatory and legal compliance.
Perils are an important aspect of property insurance. Which
one of the following statements is correct with respect to
perils? - Correct Answers ✅A peril is the actual means by
which property is damaged or destroyed such as fire,
lightning, windstorm, hail or theft.
During a business interruption, some of the organizations
expenses, called continuing expenses, will continue, and
other expenses, called non-continuing expenses, will not
continue. Which one of the following is an example of a
continuing expense? - Correct Answers ✅Payroll of key
employees.
Which one of the following loss exposure exist when a
business can be held legally liable for bodily injury or
property damaged caused by their repair or contracting
work? - Correct Answers ✅Completed operations liability.
Which one of the following entities would likely have the
greatest completed operations loss exposure? - Correct
Answers ✅Paul the plumber.
, AINS103 Practice Exam Questions and
Answers
Inland marine insurance is insurance that covers - Correct
Answers ✅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? - Correct Answers
✅No, because Joe is not an employee of Home Builders.
Cyber risk intellectual property loss exposures include -
Correct Answers ✅Cyber extortion of trade secrets.
As part of its assessment of its cyber risk, an organization
should consider whether there are any intangible property
exposures. Which one of the following would best be
classified as an intangible property loss? - Correct Answers
✅The computer system is hacked and data including credit
card numbers are stolen.
Property insurance policies use the term "personal property"
to refer to the - Correct Answers ✅Contents in and around
a building.
In business income insurance, the expenses that an
organization would not have incurred if the business
