AINS Quiz Questions With Complete Solutions
"Merchandise held in storage or for sale, raw materials and in-
process or finished goods, including supplies used in their
packing or shipping" is the Building and Personal Property
Coverage Form's (BPP) definition for which one of the
following? Correct Answers Stock
A bond that guarantees that investors will be paid both the
interest due on municipal bonds and the principal when the bond
matures is a Correct Answers Credit enhancement financial
guaranty bond
A claim under an ISO Commercial Crime Coverage Form is
subject to the Valuation—Settlement condition. Which one of
the following is true regarding this Valuation—Settlement
condition? Correct Answers Damaged property is valued at
replacement cost or the insurer can repair or replace the property
A clause included in ocean marine cargo insurance that covers
the cost of reasonable measures that the insured is required to
take to protect property from damage at the time of loss is
referred to as the Correct Answers Sue and labor clause
A commercial package policy (CPP) component that covers
buildings and business personal property is referred to as a
Correct Answers Commercial property coverage part
A Commercial Package Policy (CPP) premium may be modified
by a package modification factor. This factor Correct Answers
,Is a discount justified by the greater efficiency in providing a
package policy.
A company has employee theft coverage with a $100,000 limit
and a $1,000 deductible. Which one of these is the amount that
the insurer would pay if one employee stole $7,000 of covered
property? Correct Answers
A company has employee theft coverage with a $100,000 limit
and a $1,000 deductible. Which one of these is the amount that
the insurer would pay if one employee stole $7,000 of covered
property? Correct Answers $6,000
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 Correct Answers Does not
respond to the director's injuries sustained because they
happened during an athletic event
A company that needs coverage for theft of money and
securities resulting from computer fraud should choose which
one of the following insuring agreements in a cyber risk
insurance policy? Correct Answers Cyber crime
A contract bond is a surety bond that can be used to guarantee
the fulfillment of obligations under which one of the following?
,Select one:
A. Judicial agreements and contracts
B. Licensing requirements
C. Fiduciary agreements
D. Construction contracts Correct Answers D. Construction
contracts
A contractor was hired by a railroad to work on a bridge
adjacent to railroad tracks. Which one of the following types of
insurance coverage would best respond to claims against the
railroad arising out of the contractor's work? Correct Answers
A Railroad Protective Liability Coverage Form purchased by the
contractor
A corporation purchased an unendorsed Commercial General
Liability policy with an inception date of July 1, 20X4. On
August 15, 20X4, it was notified that it was being sued for
injuries arising out of its advertising brochures first published on
April 1, 20X4, and not used since that date. The alleged cause of
action was its slanderous statements in its April 1, 20X4,
brochures. Which one of these Coverage B exclusions is the
correct exclusion for the insurer to use to deny coverage?
Correct Answers Material Published Prior to the Policy Period
exclusion
A description of the property insured, a list of mortgagees, and
the applicable coinsurance percentage(s) are shown on which
one of the following documents? Correct Answers Commercial
property declarations
, A factory fire caused by an employer's negligence results in the
death of one employee. The employee was the sole parent and
caregiver of a disabled young adult. The young adult sues the
employer for loss of services. Which one of the manufacturer's
policies would respond to this suit? Correct Answers The work
comp and employers liability policy would respond as loss of
services is considered under employers liability insurance
A federal workers compensation statute eliminates the right of
most maritime workers (other than crew members of vessels) to
sue their employers and in return requires such employers to
provide injured or ill workers with benefits like those provided
by state workers compensation statutes. The name of this statute
is the Correct Answers United State Longshore and Habor
Workers' Comp Act (LHWCA)
A filed jewelers block coverage form is designed to meet the
needs of Correct Answers Small retail jewelers
A fundamental difference between auto insurance and aircraft
insurance is that Correct Answers Underwriters have stricter
requirements for pilots of manned aircraft, usually requiring a
pilot's license, medical certification, and experience hours as a
pilot-in-command, as compared with minimal auto insurance
driver requirements.
A general exclusion of the ISO Commercial Crime Coverage
Form applies to acts of employees. However, an exception is
made for Correct Answers Coverage provided by the Employee
Theft insuring agreement
"Merchandise held in storage or for sale, raw materials and in-
process or finished goods, including supplies used in their
packing or shipping" is the Building and Personal Property
Coverage Form's (BPP) definition for which one of the
following? Correct Answers Stock
A bond that guarantees that investors will be paid both the
interest due on municipal bonds and the principal when the bond
matures is a Correct Answers Credit enhancement financial
guaranty bond
A claim under an ISO Commercial Crime Coverage Form is
subject to the Valuation—Settlement condition. Which one of
the following is true regarding this Valuation—Settlement
condition? Correct Answers Damaged property is valued at
replacement cost or the insurer can repair or replace the property
A clause included in ocean marine cargo insurance that covers
the cost of reasonable measures that the insured is required to
take to protect property from damage at the time of loss is
referred to as the Correct Answers Sue and labor clause
A commercial package policy (CPP) component that covers
buildings and business personal property is referred to as a
Correct Answers Commercial property coverage part
A Commercial Package Policy (CPP) premium may be modified
by a package modification factor. This factor Correct Answers
,Is a discount justified by the greater efficiency in providing a
package policy.
A company has employee theft coverage with a $100,000 limit
and a $1,000 deductible. Which one of these is the amount that
the insurer would pay if one employee stole $7,000 of covered
property? Correct Answers
A company has employee theft coverage with a $100,000 limit
and a $1,000 deductible. Which one of these is the amount that
the insurer would pay if one employee stole $7,000 of covered
property? Correct Answers $6,000
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 Correct Answers Does not
respond to the director's injuries sustained because they
happened during an athletic event
A company that needs coverage for theft of money and
securities resulting from computer fraud should choose which
one of the following insuring agreements in a cyber risk
insurance policy? Correct Answers Cyber crime
A contract bond is a surety bond that can be used to guarantee
the fulfillment of obligations under which one of the following?
,Select one:
A. Judicial agreements and contracts
B. Licensing requirements
C. Fiduciary agreements
D. Construction contracts Correct Answers D. Construction
contracts
A contractor was hired by a railroad to work on a bridge
adjacent to railroad tracks. Which one of the following types of
insurance coverage would best respond to claims against the
railroad arising out of the contractor's work? Correct Answers
A Railroad Protective Liability Coverage Form purchased by the
contractor
A corporation purchased an unendorsed Commercial General
Liability policy with an inception date of July 1, 20X4. On
August 15, 20X4, it was notified that it was being sued for
injuries arising out of its advertising brochures first published on
April 1, 20X4, and not used since that date. The alleged cause of
action was its slanderous statements in its April 1, 20X4,
brochures. Which one of these Coverage B exclusions is the
correct exclusion for the insurer to use to deny coverage?
Correct Answers Material Published Prior to the Policy Period
exclusion
A description of the property insured, a list of mortgagees, and
the applicable coinsurance percentage(s) are shown on which
one of the following documents? Correct Answers Commercial
property declarations
, A factory fire caused by an employer's negligence results in the
death of one employee. The employee was the sole parent and
caregiver of a disabled young adult. The young adult sues the
employer for loss of services. Which one of the manufacturer's
policies would respond to this suit? Correct Answers The work
comp and employers liability policy would respond as loss of
services is considered under employers liability insurance
A federal workers compensation statute eliminates the right of
most maritime workers (other than crew members of vessels) to
sue their employers and in return requires such employers to
provide injured or ill workers with benefits like those provided
by state workers compensation statutes. The name of this statute
is the Correct Answers United State Longshore and Habor
Workers' Comp Act (LHWCA)
A filed jewelers block coverage form is designed to meet the
needs of Correct Answers Small retail jewelers
A fundamental difference between auto insurance and aircraft
insurance is that Correct Answers Underwriters have stricter
requirements for pilots of manned aircraft, usually requiring a
pilot's license, medical certification, and experience hours as a
pilot-in-command, as compared with minimal auto insurance
driver requirements.
A general exclusion of the ISO Commercial Crime Coverage
Form applies to acts of employees. However, an exception is
made for Correct Answers Coverage provided by the Employee
Theft insuring agreement
