Page 1 of 131
AINS 103 EXAM PREP|| ACTUAL EXAM WITH
ALL QUESTIONS AND 100% CORRECT
ANSWERS GRADED A+|| LATEST AND
COMPLETE UPDATE 2025 WITH VERIFIED
SOLUTIONS|| GUARANTEED PASS!!!
JG Painting is insured under a monoline commercial auto policy. The business is
located in Pennsylvania, but also does work in New Jersey and Delaware. Which
one of the following would be used to add PIP insurance coverage to an auto
policy?
A. Coverage Forms
B. Endorsements
C. Declarations
D. Classifications
B. Endorsements
The insurance agent advised the owners of Perfect Dry Cleaning that bailees'
customers polices cover
A. Both legal liability exposure and goodwill exposure.
B. Legal liability exposure but not goodwill exposure.
C. Goodwill exposure but not legal liability exposure.
D. Neither legal liability exposure nor goodwill exposure.
A. Both legal liability exposure and goodwill exposure.
,Page 2 of 131
If the insured expands operations into a new state, which one of the following
statements is true?
A. The insured must immediately request the insurer to add other states insurance
to the policy by endorsement.
B. Coverage under the WC&EL Policy is suspended due to nondisclosure of a
material fact.
C. The insured must notify the insurer within thirty days or else no coverage will
apply for that state.
D. Insurance automatically extends coverage to those operations.
C. The insured must notify the insurer within thirty days or else no coverage will
apply for that state.
Which one of the following risk categories is generally eligible for coverage under
a businessowners policy (BOP)?
A. Automobile dealers
B. Bars and pubs
C. Office buildings
D. Financial institutions
C. Office buildings
Jenn is a producer for Goshen Mutual. She is trying to determine if a new prospect,
Mr. Cooper's Café is eligible for the businessowners policy (BOP). Mr. Cooper's
Café is a small restaurant located on the first floor of an office building, serving
,Page 3 of 131
only breakfast and lunch. Cooking on the premises is limited to coffee makers, a
grill, and microwave appliances. It has seating for 10-15 people, and large
refrigerated cases with food, beer and wine to-go. Which one of the following
factors about Mr. Cooper's Café would make it ineligible for BOP coverage?
A. It does some cooking on premises.
B. It has seating for 15 people.
C. It is located in an office building.
D. It sells beer and wine.
D. It sells beer and wine.
The businessowners policy (BOP) packages basic coverages and uses simplified
rating procedures, allowing insurers to do which one of the following?
A. Meet all of a business owner's insurance needs with one policy
B. Streamline the underwriting process
C. Collect more premium
D. Eliminate the need for endorsements
B. Streamline the underwriting process
Brick Bakery is insured under a businessowners policy (BOP) with a $300,000
limit for Building and a $150,000 limit for Personal Property. A fire loss at the
bakery resulted in damage to both the building and personal property. Which one
of the following would be considered personal property under Brick Bakery's
BOP?
, Page 4 of 131
A. The furniture used for outdoor seating
B. The lights on the front of the building
C. The heating unit in the basement
D. The covered deck attached to the building
A. The furniture used for outdoor seating
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?
A. $77,000
B. $87,000
C. $88,000
D. $88,500
B. $87,000
The store merchandise, shelving units, and computer would all be covered under
the personal property limit of the BOP. The cash is not covered. The total of the
covered property is $88,000. The deductible of $1,000 is subtracted, and the BOP
insured will pay $87,000.
AINS 103 EXAM PREP|| ACTUAL EXAM WITH
ALL QUESTIONS AND 100% CORRECT
ANSWERS GRADED A+|| LATEST AND
COMPLETE UPDATE 2025 WITH VERIFIED
SOLUTIONS|| GUARANTEED PASS!!!
JG Painting is insured under a monoline commercial auto policy. The business is
located in Pennsylvania, but also does work in New Jersey and Delaware. Which
one of the following would be used to add PIP insurance coverage to an auto
policy?
A. Coverage Forms
B. Endorsements
C. Declarations
D. Classifications
B. Endorsements
The insurance agent advised the owners of Perfect Dry Cleaning that bailees'
customers polices cover
A. Both legal liability exposure and goodwill exposure.
B. Legal liability exposure but not goodwill exposure.
C. Goodwill exposure but not legal liability exposure.
D. Neither legal liability exposure nor goodwill exposure.
A. Both legal liability exposure and goodwill exposure.
,Page 2 of 131
If the insured expands operations into a new state, which one of the following
statements is true?
A. The insured must immediately request the insurer to add other states insurance
to the policy by endorsement.
B. Coverage under the WC&EL Policy is suspended due to nondisclosure of a
material fact.
C. The insured must notify the insurer within thirty days or else no coverage will
apply for that state.
D. Insurance automatically extends coverage to those operations.
C. The insured must notify the insurer within thirty days or else no coverage will
apply for that state.
Which one of the following risk categories is generally eligible for coverage under
a businessowners policy (BOP)?
A. Automobile dealers
B. Bars and pubs
C. Office buildings
D. Financial institutions
C. Office buildings
Jenn is a producer for Goshen Mutual. She is trying to determine if a new prospect,
Mr. Cooper's Café is eligible for the businessowners policy (BOP). Mr. Cooper's
Café is a small restaurant located on the first floor of an office building, serving
,Page 3 of 131
only breakfast and lunch. Cooking on the premises is limited to coffee makers, a
grill, and microwave appliances. It has seating for 10-15 people, and large
refrigerated cases with food, beer and wine to-go. Which one of the following
factors about Mr. Cooper's Café would make it ineligible for BOP coverage?
A. It does some cooking on premises.
B. It has seating for 15 people.
C. It is located in an office building.
D. It sells beer and wine.
D. It sells beer and wine.
The businessowners policy (BOP) packages basic coverages and uses simplified
rating procedures, allowing insurers to do which one of the following?
A. Meet all of a business owner's insurance needs with one policy
B. Streamline the underwriting process
C. Collect more premium
D. Eliminate the need for endorsements
B. Streamline the underwriting process
Brick Bakery is insured under a businessowners policy (BOP) with a $300,000
limit for Building and a $150,000 limit for Personal Property. A fire loss at the
bakery resulted in damage to both the building and personal property. Which one
of the following would be considered personal property under Brick Bakery's
BOP?
, Page 4 of 131
A. The furniture used for outdoor seating
B. The lights on the front of the building
C. The heating unit in the basement
D. The covered deck attached to the building
A. The furniture used for outdoor seating
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?
A. $77,000
B. $87,000
C. $88,000
D. $88,500
B. $87,000
The store merchandise, shelving units, and computer would all be covered under
the personal property limit of the BOP. The cash is not covered. The total of the
covered property is $88,000. The deductible of $1,000 is subtracted, and the BOP
insured will pay $87,000.
