AINS103 PRACTICE QUESTIONS,
AINS 103 EXAM WITH COMPLETE
SOLUTIONS 2025|| LATEST UPDATED
|| 100% PASS.
,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 scenario illustrates which source of reputation risk
- ANSWERRegulatory and legal compliance.
Perils are an important aspect of property insurance. Which one of the following
statements is correct with respect to perils? - ANSWERA 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? -
ANSWERPayroll 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? -
ANSWERCompleted operations liability.
Which one of the following entities would likely have the greatest completed operations
loss exposure? - ANSWERPaul the plumber.
Inland marine insurance is insurance that covers - ANSWERMany 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? - ANSWERNo, because Joe is not an employee of Home Builders.
Cyber risk intellectual property loss exposures include - ANSWERCyber extortion of
trade secrets.
In property insurance, the term "Property in Transit" refers to which one of the
following? - ANSWERProperty 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? - ANSWERCost 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? - ANSWERPremises 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 - ANSWERCompleted
operations liability.
A carrier that is prevented by an accident from delivering the cargo aboard its ship may
face an exposure called loss of freight, which is - ANSWERThe 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? - ANSWERMany 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 - ANSWERLoss or damage caused by
computer virsuses.
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? - ANSWERThe computer system is hacked
and data including credit card numbers are stolen.
Property insurance policies use the term "personal property" to refer to the -
ANSWERContents in and around a building.
In business income insurance, the expenses that an organization would not have
incurred if the business interruption have not occurred are called - ANSWERExtra
expenses.
Radley Contracting Company is installing new signage on the front of a building.
George, a passerby walking near the building is injured when a Radley employee
accidentally drops a tool from a crane. George likely has the ability to assert which one
the following types of claim? - ANSWERPremises and operations liability.
, John purchased a new lawnmower two years ago. After significant use, the lawnmower
needed servicing. A repairman sharpened the blade but he failed to reattach it properly
to the lawnmower. When John was using the lawnmower, the blade flew off and
seriously injured John's daughter. From the standpoint of a commercial liability loss for
the repair shop, this is an example of - ANSWERCompleted operations liability.
Automobile liability exposures can result from - ANSWERHiring or borrowing an
automobile.
Workers compensation benefits include which one of the following? -
ANSWERRehabilitation Benefits.
The unauthorized intrusion into a company's computer network resulting in damage to
intellectual property is best classified as which one of the following types of cyber
liability exposures? - ANSWERIntangible property.
An email was sent to a company's employee containing a harmful attachment. Several
employees opened the attachment which allowed hackers to obtain customer contact
information. This cyber risk loss is - ANSWERDamage to intangible property.
Which one of the following best describes real property? - ANSWERTangible property
that include land, structures permanently attached to the land, and whatever is growing
on the land.
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? - ANSWERA
defective gas range manufactured by the insured explodes causing injury.
A building contractor uses lower grade materials than called for in the specifications for
an office building. A year after the building was completed, a balcony collapses, injuring
several employees and customers and causing damage to the building and contents.
For the building construction company, this is an example of - ANSWERA completed
operations liability exposure.
To be covered under a workers compensation statute, an injury or disease (in most
states) must meet which one of the following requirements? - ANSWERArise out of
employees job-related injuries and diseases.
Which one of the following supply chain exposures can a business mitigate by carefully
wording contracts and diversifying suppliers? - ANSWERLoss of supply due to external
events.
Bio-Pharma was a highly regarded pharmaceutical company. That changed last year
when it was revealed that Bio-Pharma researchers had fabricated test results of the
company's new hypertension drug, a company official bribed a key regulator to get the
AINS 103 EXAM WITH COMPLETE
SOLUTIONS 2025|| LATEST UPDATED
|| 100% PASS.
,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 scenario illustrates which source of reputation risk
- ANSWERRegulatory and legal compliance.
Perils are an important aspect of property insurance. Which one of the following
statements is correct with respect to perils? - ANSWERA 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? -
ANSWERPayroll 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? -
ANSWERCompleted operations liability.
Which one of the following entities would likely have the greatest completed operations
loss exposure? - ANSWERPaul the plumber.
Inland marine insurance is insurance that covers - ANSWERMany 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? - ANSWERNo, because Joe is not an employee of Home Builders.
Cyber risk intellectual property loss exposures include - ANSWERCyber extortion of
trade secrets.
In property insurance, the term "Property in Transit" refers to which one of the
following? - ANSWERProperty 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? - ANSWERCost 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? - ANSWERPremises 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 - ANSWERCompleted
operations liability.
A carrier that is prevented by an accident from delivering the cargo aboard its ship may
face an exposure called loss of freight, which is - ANSWERThe 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? - ANSWERMany 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 - ANSWERLoss or damage caused by
computer virsuses.
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? - ANSWERThe computer system is hacked
and data including credit card numbers are stolen.
Property insurance policies use the term "personal property" to refer to the -
ANSWERContents in and around a building.
In business income insurance, the expenses that an organization would not have
incurred if the business interruption have not occurred are called - ANSWERExtra
expenses.
Radley Contracting Company is installing new signage on the front of a building.
George, a passerby walking near the building is injured when a Radley employee
accidentally drops a tool from a crane. George likely has the ability to assert which one
the following types of claim? - ANSWERPremises and operations liability.
, John purchased a new lawnmower two years ago. After significant use, the lawnmower
needed servicing. A repairman sharpened the blade but he failed to reattach it properly
to the lawnmower. When John was using the lawnmower, the blade flew off and
seriously injured John's daughter. From the standpoint of a commercial liability loss for
the repair shop, this is an example of - ANSWERCompleted operations liability.
Automobile liability exposures can result from - ANSWERHiring or borrowing an
automobile.
Workers compensation benefits include which one of the following? -
ANSWERRehabilitation Benefits.
The unauthorized intrusion into a company's computer network resulting in damage to
intellectual property is best classified as which one of the following types of cyber
liability exposures? - ANSWERIntangible property.
An email was sent to a company's employee containing a harmful attachment. Several
employees opened the attachment which allowed hackers to obtain customer contact
information. This cyber risk loss is - ANSWERDamage to intangible property.
Which one of the following best describes real property? - ANSWERTangible property
that include land, structures permanently attached to the land, and whatever is growing
on the land.
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? - ANSWERA
defective gas range manufactured by the insured explodes causing injury.
A building contractor uses lower grade materials than called for in the specifications for
an office building. A year after the building was completed, a balcony collapses, injuring
several employees and customers and causing damage to the building and contents.
For the building construction company, this is an example of - ANSWERA completed
operations liability exposure.
To be covered under a workers compensation statute, an injury or disease (in most
states) must meet which one of the following requirements? - ANSWERArise out of
employees job-related injuries and diseases.
Which one of the following supply chain exposures can a business mitigate by carefully
wording contracts and diversifying suppliers? - ANSWERLoss of supply due to external
events.
Bio-Pharma was a highly regarded pharmaceutical company. That changed last year
when it was revealed that Bio-Pharma researchers had fabricated test results of the
company's new hypertension drug, a company official bribed a key regulator to get the
