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AINS 103 Exam | Verified Questions
with 100% Correct Answers | Updated
Test Bank 2025/2026 | Graded A+
Lucy, the owner of Lucy's Flower Shop, was delivering a vase of flowers to a
customer, Mrs. White. When Mrs. White opened her front door, her dog ran
outside, knocking the flowers from Lucy's hands, and causing the vase to shatter
and injure Mrs. White. Although the customer insisted that she would be fine, Lucy
received a medical bill for injuries to Mrs. White two years later. The medical
treatment had been received one week before Lucy received the bill. Lucy explains
the situation to her insurer and requests coverage under her Commercial General
Liability Coverage Form (CGL). Which one of the following is correct regarding
whether the medical expenses will be covered under Coverage C—Medical
Payments of the CGL?
Select one:
A. No, because the coverage does not apply to accidents that occur away from the
insured's premises and adjacent ways.
B. No, because the medical expenses must be incurred and reported to the -
ANSWER- B. No, because the medical expenses must be incurred and reported to
the insurer within one year after the date of the accident.
Which one of the following statements is true regarding Coverage C—Medical
Payments of the Commercial General Liability policy?
Select one:
A. Medical payments coverage provides high limits of insurance for bodily injury
losses.
B. Medical payments coverage is liability insurance because it pays only if the
insured is legally liable.
C. Medical payments coverage is a means of making prompt settlements.
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D. Medical payments coverage applies to bodily injury to any insured. -
ANSWER- C. Medical payments coverage is a means of making prompt
settlements.
Monica and her girlfriend were shopping at Allen Leather Shop. When they were
leaving, the store's security guard stopped Monica and wrongly accused her of
shoplifting. Which one of the following coverages under Allen Leather Shop's
commercial general liability coverage form would provide coverage if Monica
filed a suit against the store?
Select one:
A. Coverage A
B. Coverage B
C. Coverage C
D. Coverage D - ANSWER- B. Coverage B
Dollar Donut Shop (DDS) is located in a shopping center with a number of other
retail businesses. One day a grease fire started at DDS, and spread to Tony's
Restaurant next door. Both locations were damaged and a number of individuals
were injured during the evacuation process. Assuming that DDS is found to be
liable for the fire, which one of the following would be covered under Coverage A
of DDS' commercial general liability (CGL) policy?
Select one:
A. The burns suffered by a DDS employee
B. The property damage to Tony's Restaurant
C. The property damage to DDS
D. The slander suit for falsely accusing Tony of starting the fire - ANSWER- B.
The property damage to Tony's Restaurant
A customer filed a suit against Patsy's Market, claiming that she was injured when
she slipped and fell in the produce section. The customer claimed that she broke
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her elbow, had to have surgery, and missed a week of work. The owner of Patsy's
Market told its commercial general liability (CGL) insurer that the produce area
was always clean and that the claim was suspicious. After reviewing the medical
bills and video footage from the market, the insurer concluded that Patsy's Market
was probably liable for the customer's injury. The CGL insurer will most likely
attempt to do which one of the following?
Select one:
A. Defend Patsy's Market in court
B. Refuse to defend Patsy's Market based on an exclusion
C. Negotiate an out of court settlement
D. Deny the claim based on the owner's suspicion - ANSWER- C. Negotiate an
out of court settlement
Which one of the following claims would be covered under Coverage B—Personal
and Advertising Injury Liability of the Commercial General Liability Coverage
Form (CGL)?
Select one:
A. A store manager accuses a young man of shoplifting, apprehends him, and locks
him in a storage room until the police arrive. When it is discovered that the young
man is innocent, he files a claim against the store.
B. An insured is sued for slashing the tires of a competitor's trucks and causing the
competitor to lose business. The competitor submits a claim for his loss of business.
C. A landlord of a commercial building argues with a tenant, enters the tenant's
store after hours and damages the tenant's merchandise. The tenant files a claim for
his damaged merchandise.
D. When a new restaurant opens down the street, the insured submits a false story to
the newspaper stating that the restaurant is infested by rats. The insured is sued fo -
ANSWER- A. A store manager accuses a young man of shoplifting,
apprehends him, and locks him in a storage room until the police arrive. When it is
discovered that the young man is innocent, he files a claim against the store.
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A not-for-profit public interest group posted a newspaper editorial on its electronic
chatroom that falsely accused a local politician of criminal activity. The public
interest group is insured under an unendorsed Commercial General Liability (CGL)
policy. The politician who was falsely accused filed suit against the public interest
group for libel. Which one of these statements best describes the probable response
the public interest group will receive from its insurer after the insurer reviews these
facts?
Select one:
A. The claim will be covered because the territory of Coverage B of the CGL
policy is worldwide for personal and advertising injury offenses that take place
through the Internet.
B. The claim will be denied because Coverage B of the CGL policy excludes
criminal acts arising out of a criminal act committed by or at the direction of the
insured.
C. The claim will be denied because Coverage B of the CGL - ANSWER- C. The
claim will be denied because Coverage B of the CGL policy excludes any injury
arising out of an electronic chatroom or electronic bulletin board.
The Commercial General Liability (CGL) Coverage B—Personal and Advertising
Injury Liability provides coverage for which one of the following?
Select one:
A. False arrest
B. Knowing violation of rights of another
C. Contractual liability
D. Criminal acts - ANSWER- A. False arrest
Under the Commercial General Liability (CGL) Coverage Form, medical
payments coverage applies to which one of the following?
Select one:
AINS 103 Exam | Verified Questions
with 100% Correct Answers | Updated
Test Bank 2025/2026 | Graded A+
Lucy, the owner of Lucy's Flower Shop, was delivering a vase of flowers to a
customer, Mrs. White. When Mrs. White opened her front door, her dog ran
outside, knocking the flowers from Lucy's hands, and causing the vase to shatter
and injure Mrs. White. Although the customer insisted that she would be fine, Lucy
received a medical bill for injuries to Mrs. White two years later. The medical
treatment had been received one week before Lucy received the bill. Lucy explains
the situation to her insurer and requests coverage under her Commercial General
Liability Coverage Form (CGL). Which one of the following is correct regarding
whether the medical expenses will be covered under Coverage C—Medical
Payments of the CGL?
Select one:
A. No, because the coverage does not apply to accidents that occur away from the
insured's premises and adjacent ways.
B. No, because the medical expenses must be incurred and reported to the -
ANSWER- B. No, because the medical expenses must be incurred and reported to
the insurer within one year after the date of the accident.
Which one of the following statements is true regarding Coverage C—Medical
Payments of the Commercial General Liability policy?
Select one:
A. Medical payments coverage provides high limits of insurance for bodily injury
losses.
B. Medical payments coverage is liability insurance because it pays only if the
insured is legally liable.
C. Medical payments coverage is a means of making prompt settlements.
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D. Medical payments coverage applies to bodily injury to any insured. -
ANSWER- C. Medical payments coverage is a means of making prompt
settlements.
Monica and her girlfriend were shopping at Allen Leather Shop. When they were
leaving, the store's security guard stopped Monica and wrongly accused her of
shoplifting. Which one of the following coverages under Allen Leather Shop's
commercial general liability coverage form would provide coverage if Monica
filed a suit against the store?
Select one:
A. Coverage A
B. Coverage B
C. Coverage C
D. Coverage D - ANSWER- B. Coverage B
Dollar Donut Shop (DDS) is located in a shopping center with a number of other
retail businesses. One day a grease fire started at DDS, and spread to Tony's
Restaurant next door. Both locations were damaged and a number of individuals
were injured during the evacuation process. Assuming that DDS is found to be
liable for the fire, which one of the following would be covered under Coverage A
of DDS' commercial general liability (CGL) policy?
Select one:
A. The burns suffered by a DDS employee
B. The property damage to Tony's Restaurant
C. The property damage to DDS
D. The slander suit for falsely accusing Tony of starting the fire - ANSWER- B.
The property damage to Tony's Restaurant
A customer filed a suit against Patsy's Market, claiming that she was injured when
she slipped and fell in the produce section. The customer claimed that she broke
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her elbow, had to have surgery, and missed a week of work. The owner of Patsy's
Market told its commercial general liability (CGL) insurer that the produce area
was always clean and that the claim was suspicious. After reviewing the medical
bills and video footage from the market, the insurer concluded that Patsy's Market
was probably liable for the customer's injury. The CGL insurer will most likely
attempt to do which one of the following?
Select one:
A. Defend Patsy's Market in court
B. Refuse to defend Patsy's Market based on an exclusion
C. Negotiate an out of court settlement
D. Deny the claim based on the owner's suspicion - ANSWER- C. Negotiate an
out of court settlement
Which one of the following claims would be covered under Coverage B—Personal
and Advertising Injury Liability of the Commercial General Liability Coverage
Form (CGL)?
Select one:
A. A store manager accuses a young man of shoplifting, apprehends him, and locks
him in a storage room until the police arrive. When it is discovered that the young
man is innocent, he files a claim against the store.
B. An insured is sued for slashing the tires of a competitor's trucks and causing the
competitor to lose business. The competitor submits a claim for his loss of business.
C. A landlord of a commercial building argues with a tenant, enters the tenant's
store after hours and damages the tenant's merchandise. The tenant files a claim for
his damaged merchandise.
D. When a new restaurant opens down the street, the insured submits a false story to
the newspaper stating that the restaurant is infested by rats. The insured is sued fo -
ANSWER- A. A store manager accuses a young man of shoplifting,
apprehends him, and locks him in a storage room until the police arrive. When it is
discovered that the young man is innocent, he files a claim against the store.
, Page 4 of 92
A not-for-profit public interest group posted a newspaper editorial on its electronic
chatroom that falsely accused a local politician of criminal activity. The public
interest group is insured under an unendorsed Commercial General Liability (CGL)
policy. The politician who was falsely accused filed suit against the public interest
group for libel. Which one of these statements best describes the probable response
the public interest group will receive from its insurer after the insurer reviews these
facts?
Select one:
A. The claim will be covered because the territory of Coverage B of the CGL
policy is worldwide for personal and advertising injury offenses that take place
through the Internet.
B. The claim will be denied because Coverage B of the CGL policy excludes
criminal acts arising out of a criminal act committed by or at the direction of the
insured.
C. The claim will be denied because Coverage B of the CGL - ANSWER- C. The
claim will be denied because Coverage B of the CGL policy excludes any injury
arising out of an electronic chatroom or electronic bulletin board.
The Commercial General Liability (CGL) Coverage B—Personal and Advertising
Injury Liability provides coverage for which one of the following?
Select one:
A. False arrest
B. Knowing violation of rights of another
C. Contractual liability
D. Criminal acts - ANSWER- A. False arrest
Under the Commercial General Liability (CGL) Coverage Form, medical
payments coverage applies to which one of the following?
Select one:
