AINS 103 ACTUAL EXAM BANK| WITH COMPLETE QUESTIONS AND
ANSWERS | 2025/206 LATEST UPDATED | 100 % RATED AND VERIFIED
SOLUTIONS | GET AN A+
1. The typical workers compensation statute provides payment for which one of the following?: The typical workers
compensation statute provides payment for medical bills for an injury sustained by an employee while working.
2. A business owner wants to know if a business income loss caused by machine breakdown can be greater than the
physical damage loss itself. How would you
answer the business owner?: Yes, a business income loss caused by machine breakdown can be greater than the physical
damage loss itself.
3. A carrier is prevented from delivering cargo aboard its ship due to an accident that occurred while at sea. One of the
losses the carrier may face is loss of freight. Loss of freight refers to which one of the following?: Freight is the
compensation the carrier receives for transporting cargo.
4. 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: The compensation the carrier receives for transporting cargo.
5. A commercial building may contain furniture, machinery and equipment and finished products. Which one of the
following is the term generally used in
property insurance policies to refer to all these types of property?: Property insurance
policies generally refer to the contents of a commercial building as "business personal property."
6. A company owns land that is used as a softball diamond and recreational park for hosting employee picnics. Once a
year the company also allows a non-profit organization to hold a softball game on these premises. During this year's
, softball game, the director of the non-profit was injured when a softball hit him in the head. He asked the company
that owns the land to pay for his trip to the emergency room. The company's unendorsed Commercial General
Liability policy: The company's unendorsed Commercial General Liability policy does not cover the director's injuries
sustained because they happened during an athletic event.
7. 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 loss is categorized as: This commercial
liability loss is categorized as completed operations liability.
8. 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 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?: If the insurer's investigation revealed that Patsy's Market was liable and that the damages were
covered by the policy, it would likely try to negotiate an out of court settlement.
9. A customer shopping at Clark's Food Market dropped a bottle of wine at the checkout counter. The bottle broke and
cut the customer's leg. The customer required some minor medical attention and a few stitches. Which one of the
following coverages under Clark's Commercial General Liability (CGL) coverage form would pay for the customer's
expenses?: Medical payments coverage would provide
coverage for the customer's medical expenses. Its role is to pay small bodily injury claims without having to establish
liability, perhaps reducing that likelihood that an accident victim will sue the insured.
10. A family recently purchased a new home constructed by a residential home builder. Two months after taking
possession, several of the family members were injured when the roof suddenly collapsed. The family sued the
, construction company and was awarded monetary damages for their injuries. This is an example of which one of the
following types of commercial liability loss exposure for the construction company?: Completed operations liability
11. A motor truck cargo liability policy: A motor truck cargo liability policy covers a trucking company's liability for
damage to goods of others while being transported by the trucker.
12. 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?: 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.
13. A policy that covers damage to customer's goods while in the possession of
the insured, regardless of liability is It would be: a bailee customer policy that covers damage to a customer's goods while
in the possession of the insured, regardless of liability.
14. A private company posted a video on the internet introducing a new product. The music used in the video was from
a copyrighted song. When the company sought coverage under Part B of their Commercial General Liability (CGL)
Coverage Form after a claim was filed against them for damages, coverage will most likely be excluded based on
which one of the following exclusions?: Coverage
for infringement of copyright, patent, trademarks, or trade secret are excluded unless it occurs in an advertisement
exclusion
15. 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: The loss exposure faced by the tire store in this case is known as completed operations liability.
, 16. Adam, the risk manager for Carmichael Health Care, has determined that the company needs liability insurance of
$100 million. However, he cannot find any one insurer that will write a policy of $100 million.
The final insurance arrangement that Adam submitted to the officers at Carmichael Health Care is as follows:
Insurer A: $10 million Insurer B: $20 million
Insurer C: $30 million
Insurer D: $40 million
This insurance arrangement is referred to as: This insurance arrangement is referred to as layering.
17. Adverse selection: The tendency of those most likely to experience loss to be the most likely to purchase insurance
18. Aggregate limit: The maximum amount an insurer will pay for all covered losses during the covered policy period
19. Alice has the use of a company car insured with a Business Auto Coverage Form with one endorsement for
uninsured motorists (UM) coverage. Alice was in an accident while driving the car and sustained the following losses:
$ 200 - housekeeper for one day
$ 300 - physical therapy and rehabilitation
$ 400 - lost wages
$1,000 - hospital bills $2,000 - doctor's bill
The other driver was at fault but had no insurance. Assuming that no other insurance applies, how much can Alice collect
under her employer's UM coverage?: $3,900. All of the losses are covered under uninsured motorist coverage.
20. Allen, a sole proprietor, is crossing the street when he is struck by a passing uninsured auto. He sustains $2,500 in
medical bills and $1,000 in lost wages. Allen's business auto policy has $100,000 liability limit and $5,000 medical
payments limit. Assuming there is no other coverage, how much will his business auto policy pay?: $2,500. The
medical payments coverage will pay for Allen's medical bills but he would need uninsured motorist insurance for his
lost wages.
ANSWERS | 2025/206 LATEST UPDATED | 100 % RATED AND VERIFIED
SOLUTIONS | GET AN A+
1. The typical workers compensation statute provides payment for which one of the following?: The typical workers
compensation statute provides payment for medical bills for an injury sustained by an employee while working.
2. A business owner wants to know if a business income loss caused by machine breakdown can be greater than the
physical damage loss itself. How would you
answer the business owner?: Yes, a business income loss caused by machine breakdown can be greater than the physical
damage loss itself.
3. A carrier is prevented from delivering cargo aboard its ship due to an accident that occurred while at sea. One of the
losses the carrier may face is loss of freight. Loss of freight refers to which one of the following?: Freight is the
compensation the carrier receives for transporting cargo.
4. 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: The compensation the carrier receives for transporting cargo.
5. A commercial building may contain furniture, machinery and equipment and finished products. Which one of the
following is the term generally used in
property insurance policies to refer to all these types of property?: Property insurance
policies generally refer to the contents of a commercial building as "business personal property."
6. A company owns land that is used as a softball diamond and recreational park for hosting employee picnics. Once a
year the company also allows a non-profit organization to hold a softball game on these premises. During this year's
, softball game, the director of the non-profit was injured when a softball hit him in the head. He asked the company
that owns the land to pay for his trip to the emergency room. The company's unendorsed Commercial General
Liability policy: The company's unendorsed Commercial General Liability policy does not cover the director's injuries
sustained because they happened during an athletic event.
7. 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 loss is categorized as: This commercial
liability loss is categorized as completed operations liability.
8. 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 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?: If the insurer's investigation revealed that Patsy's Market was liable and that the damages were
covered by the policy, it would likely try to negotiate an out of court settlement.
9. A customer shopping at Clark's Food Market dropped a bottle of wine at the checkout counter. The bottle broke and
cut the customer's leg. The customer required some minor medical attention and a few stitches. Which one of the
following coverages under Clark's Commercial General Liability (CGL) coverage form would pay for the customer's
expenses?: Medical payments coverage would provide
coverage for the customer's medical expenses. Its role is to pay small bodily injury claims without having to establish
liability, perhaps reducing that likelihood that an accident victim will sue the insured.
10. A family recently purchased a new home constructed by a residential home builder. Two months after taking
possession, several of the family members were injured when the roof suddenly collapsed. The family sued the
, construction company and was awarded monetary damages for their injuries. This is an example of which one of the
following types of commercial liability loss exposure for the construction company?: Completed operations liability
11. A motor truck cargo liability policy: A motor truck cargo liability policy covers a trucking company's liability for
damage to goods of others while being transported by the trucker.
12. 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?: 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.
13. A policy that covers damage to customer's goods while in the possession of
the insured, regardless of liability is It would be: a bailee customer policy that covers damage to a customer's goods while
in the possession of the insured, regardless of liability.
14. A private company posted a video on the internet introducing a new product. The music used in the video was from
a copyrighted song. When the company sought coverage under Part B of their Commercial General Liability (CGL)
Coverage Form after a claim was filed against them for damages, coverage will most likely be excluded based on
which one of the following exclusions?: Coverage
for infringement of copyright, patent, trademarks, or trade secret are excluded unless it occurs in an advertisement
exclusion
15. 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: The loss exposure faced by the tire store in this case is known as completed operations liability.
, 16. Adam, the risk manager for Carmichael Health Care, has determined that the company needs liability insurance of
$100 million. However, he cannot find any one insurer that will write a policy of $100 million.
The final insurance arrangement that Adam submitted to the officers at Carmichael Health Care is as follows:
Insurer A: $10 million Insurer B: $20 million
Insurer C: $30 million
Insurer D: $40 million
This insurance arrangement is referred to as: This insurance arrangement is referred to as layering.
17. Adverse selection: The tendency of those most likely to experience loss to be the most likely to purchase insurance
18. Aggregate limit: The maximum amount an insurer will pay for all covered losses during the covered policy period
19. Alice has the use of a company car insured with a Business Auto Coverage Form with one endorsement for
uninsured motorists (UM) coverage. Alice was in an accident while driving the car and sustained the following losses:
$ 200 - housekeeper for one day
$ 300 - physical therapy and rehabilitation
$ 400 - lost wages
$1,000 - hospital bills $2,000 - doctor's bill
The other driver was at fault but had no insurance. Assuming that no other insurance applies, how much can Alice collect
under her employer's UM coverage?: $3,900. All of the losses are covered under uninsured motorist coverage.
20. Allen, a sole proprietor, is crossing the street when he is struck by a passing uninsured auto. He sustains $2,500 in
medical bills and $1,000 in lost wages. Allen's business auto policy has $100,000 liability limit and $5,000 medical
payments limit. Assuming there is no other coverage, how much will his business auto policy pay?: $2,500. The
medical payments coverage will pay for Allen's medical bills but he would need uninsured motorist insurance for his
lost wages.
