AINS 103 ACTUAL FINAL EXAM BANK| WITH COMPLETE
QUESTIONS AND ANSWERS | 2025/206 LATEST UPDATED | 100 %
RATED AND VERIFIED SOLUTIONS | GET AN A+
The Crime coverage form that covers losses occurring during the policy period and discovered
no later than 1 year after the policy expiration is
a. Discovery Form
b. Loss Sustained Form - (ANSWER)b. Loss Sustained Form
In property insurance, the term "property in transit" refers to which one of the following?
A. Mobile equipment while moving under its own power from one work location to another
B. Property while being transported by trucks, cars, buses, trains, airplanes, and ships
C. Property while being moved from one building to another at the insured location only
D. Owned property while located anywhere other than the insured location - (ANSWER)B.
Property while being transported by trucks, cars, buses, trains, airplanes, and ships
In business income insurance, the expenses that an organization would not have incurred if the
business interruption had not occurred are called
,A. Extra expenses.
B. Excludable expenses.
C. Continuing expenses.
D. Contingent expenses. - (ANSWER)A. Extra expenses.
These are expenses that would not have incurred if the business interruption had not occurred.
XYZ contractor, covered under an unendorsed Commercial General Liability (CGL) Coverage
Form, is installing kitchen cabinets in a customer's home. The contractor manufactured the
cabinets. While the contractor is fastening a cabinet, it falls and injures the customer. Which one
of the following best explains how coverage under the contractor's CGL Coverage Form applies
in this case?
A. Premises and operations liability applies because the contractor was in the process of
installing the cabinets.
B. Products and completed operations liability applies because the contractor was installing
cabinets it manufactured.
C. Products and completed operations liability applies because the contractor was completing the
work.
,D. Premises and operations liability applies because the contractor was working at the customer's
premises. - (ANSWER)A. Premises and operations liability applies because the contractor was
in the process of installing the cabinets.
A vehicle owner had a tire store install four new wheels and tires on the vehicle. On the way
home from the store, one of the wheels came off, causing the vehicle to accidentally run off the
road and strike a tree. The vehicle owner sued the tire store for failing to properly tighten the lug
nuts on the vehicle. The loss exposure faced by the tire store in this case is known as
A. Automobile liability.
B. Completed operations liability.
C. Employers liability.
D. Products liability. - (ANSWER)B. 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 freight, which is
A. The cost of disposing of undeliverable goods.
B. A penalty the carrier pays the shipper for nondelivery.
C. The compensation the carrier receives for transporting cargo.
, D. The liability for loss or damage to the cargo entrusted to it. - (ANSWER)C. The
compensation the carrier receives for transporting cargo.
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?
A. Yes, because the injury arose out of and in the course of employment
B. Yes, because Home Builders must provide no-fault protection for employees
C. No, because Joe is not an employee of Home Builders
D. No, because Joe probably contributed to the injury - (ANSWER)C. No, because Joe is not an
employee of Home Builders
Workers Comp is not applicable to:
Independent contactors and their employees
Leased employees
Temporary employees
QUESTIONS AND ANSWERS | 2025/206 LATEST UPDATED | 100 %
RATED AND VERIFIED SOLUTIONS | GET AN A+
The Crime coverage form that covers losses occurring during the policy period and discovered
no later than 1 year after the policy expiration is
a. Discovery Form
b. Loss Sustained Form - (ANSWER)b. Loss Sustained Form
In property insurance, the term "property in transit" refers to which one of the following?
A. Mobile equipment while moving under its own power from one work location to another
B. Property while being transported by trucks, cars, buses, trains, airplanes, and ships
C. Property while being moved from one building to another at the insured location only
D. Owned property while located anywhere other than the insured location - (ANSWER)B.
Property while being transported by trucks, cars, buses, trains, airplanes, and ships
In business income insurance, the expenses that an organization would not have incurred if the
business interruption had not occurred are called
,A. Extra expenses.
B. Excludable expenses.
C. Continuing expenses.
D. Contingent expenses. - (ANSWER)A. Extra expenses.
These are expenses that would not have incurred if the business interruption had not occurred.
XYZ contractor, covered under an unendorsed Commercial General Liability (CGL) Coverage
Form, is installing kitchen cabinets in a customer's home. The contractor manufactured the
cabinets. While the contractor is fastening a cabinet, it falls and injures the customer. Which one
of the following best explains how coverage under the contractor's CGL Coverage Form applies
in this case?
A. Premises and operations liability applies because the contractor was in the process of
installing the cabinets.
B. Products and completed operations liability applies because the contractor was installing
cabinets it manufactured.
C. Products and completed operations liability applies because the contractor was completing the
work.
,D. Premises and operations liability applies because the contractor was working at the customer's
premises. - (ANSWER)A. Premises and operations liability applies because the contractor was
in the process of installing the cabinets.
A vehicle owner had a tire store install four new wheels and tires on the vehicle. On the way
home from the store, one of the wheels came off, causing the vehicle to accidentally run off the
road and strike a tree. The vehicle owner sued the tire store for failing to properly tighten the lug
nuts on the vehicle. The loss exposure faced by the tire store in this case is known as
A. Automobile liability.
B. Completed operations liability.
C. Employers liability.
D. Products liability. - (ANSWER)B. 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 freight, which is
A. The cost of disposing of undeliverable goods.
B. A penalty the carrier pays the shipper for nondelivery.
C. The compensation the carrier receives for transporting cargo.
, D. The liability for loss or damage to the cargo entrusted to it. - (ANSWER)C. The
compensation the carrier receives for transporting cargo.
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?
A. Yes, because the injury arose out of and in the course of employment
B. Yes, because Home Builders must provide no-fault protection for employees
C. No, because Joe is not an employee of Home Builders
D. No, because Joe probably contributed to the injury - (ANSWER)C. No, because Joe is not an
employee of Home Builders
Workers Comp is not applicable to:
Independent contactors and their employees
Leased employees
Temporary employees
