AINS 103 Questions and Correct Answers
1. Which one of the following best describes real property?
Select one:
A. Property being shipped to or from others.
B. Business personal property that includes furniture, machinery and equip-
ment, and stock/inventory.
C. Tangible property that includes land, structures permanently attached to the
land, and whatever is growing on the land.
D. Vehicles, merchandise, furniture, tools, and similar items. ANSWER -C. Tangible
property that includes land, structures permanently attached to the land, and whatever is growing on the land.
2. Extra expenses are expenses, in addition to ordinary expenses, that an orga-
nization incurs to mitigate the effects of a business interruption. Which one of
the following is an example of an extra expense?
Select one:
A. Cost to rent temporary office space
B. Insurance premiums
C. Debt repayments
D. Payroll of key employees ANSWER -A. Cost to rent temporary oflce space
3. Upon entering a restaurant, a customer grasped a handrail that 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?
Select one:
A. Premises and operations liability
B. Personal and advertising injury liability
C. Absolute liability
D. Products and completed operations liability ANSWER -A. Premises and operations
liability
4. The liability loss exposure that exists when an organization is legally respon-
sible for bodily injury or property damage caused by an accident that occurs
on an organization's owned, leased, or rented property is
Select one:
A. Professional liability.
B. Property liability.
, AINS 103 Questions and Correct Answers
C. Operations liability.
D. Premises and operations liability. ANSWER -D. Premises and operations liability.
5. Automobile liability exposures can result from
Select one:
A. Damage to or destruction of an owned vehicle.
B. Loss of use of an owned automobile.
C. Workers compensation laws.
D. Hiring or borrowing an automobile. ANSWER -D. Hiring or borrowing an automobile.
6. To be covered under a workers compensation statute, an injury or disease (in
most states) must meet which one of the following requirements?
Select one:
A. Result from the employer's negligence
B. Occur away from the regular work premises
C. Arise out of employees' job-related injuries and diseases
D. Result in total disability ANSWER -C. Arise out of employees' job-related injuries and diseases
7. Cyber risk intellectual property loss exposures include
Select one:
A. Cyber extortion of trade secrets.
B. Personal and advertising injury liability.
C. Loss to tangible property.
D. Property damage liability. ANSWER -A. Cyber extortion of trade secrets.
8. As part of its assessment of its cyber risk, an organization should consider
whether there are any intangible property exposures. Which one of the follow-
ing would best be classified as an intangible property loss?
Select one:
A. Two disgruntled employees use the computer system to transfer office funds
into their own personal bank accounts.
B. The computer system is hacked and data including credit card numbers are
stolen.
C. Thieves break into the main office and steal several desktop computers.
D. There is a fire in the storage area which destroys the backup copy of the
, AINS 103 Questions and Correct Answers
office computer system. ANSWER -B. The computer system is hacked and data including credit card numbe
are stolen.
9. 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?
Select one:
A. Business personal property
B. Stock
C. Inventory
D. Commercial property ANSWER -A. Business personal property
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 construc-
tion 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?
Select one:
A. Products liability
B. Premises and operations liability
C. Completed operations liability
D. Employers liability ANSWER -C. Completed operations liability
11. 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?
Select one:
A. A defective gas range manufactured by the insured explodes causing injury.
B. A customer's house is set on fire while the insured is doing plumbing work.
C. A dissatisfied customer sues an insured for slander.
D. A customer is injured when she slips on a wet floor in a store. ANSWER -A. A
defective gas range manufactured by the insured explodes causing injury
12. Joe Motors, which services automobiles, wants to maintain the goodwill of
its customers. This is best accomplished by
, AINS 103 Questions and Correct Answers
Select one:
A. Purchasing garage liability insurance.
B. Purchasing garagekeepers insurance.
C. Lowering the physical damage deductible under its business auto insur-
ance.
D. Raising liability limits under its business auto insurance. ANSWER -B. Purchasing
garagekeepers insurance.
13. Workers compensation benefits include which one of the following?
Select one:
A. Death benefits of 100 percent of wage loss
B. Pain and suffering benefits
C. Rehabilitation benefits
D. Property damage benefits ANSWER -C. Rehabilitation benefits
14. An email was sent to a company's employees containing a harmful attach-
ment. Several employees opened the attachment which allowed hackers to
obtain customer contact information. This cyber risk loss is
Select one:
A. Damage to intangible property.
B. Damage to personal property.
C. Damage to tangible property.
D. Errors and omissions liability. ANSWER -A. Damage to intangible property.
15. An individual owns a web-based business. All sales records and contact data
are maintained on the same network server as the website. Someone hacks
into the server and deletes all of the saved data. Which one of the following
types of loss is this?
Select one:
A. Tangible property
B. Personal injury
C. Intangible property
D. Contingent business income ANSWER -C. Intangible property
16. Property insurance policies use the term "personal property" to refer to the
Select one:
1. Which one of the following best describes real property?
Select one:
A. Property being shipped to or from others.
B. Business personal property that includes furniture, machinery and equip-
ment, and stock/inventory.
C. Tangible property that includes land, structures permanently attached to the
land, and whatever is growing on the land.
D. Vehicles, merchandise, furniture, tools, and similar items. ANSWER -C. Tangible
property that includes land, structures permanently attached to the land, and whatever is growing on the land.
2. Extra expenses are expenses, in addition to ordinary expenses, that an orga-
nization incurs to mitigate the effects of a business interruption. Which one of
the following is an example of an extra expense?
Select one:
A. Cost to rent temporary office space
B. Insurance premiums
C. Debt repayments
D. Payroll of key employees ANSWER -A. Cost to rent temporary oflce space
3. Upon entering a restaurant, a customer grasped a handrail that 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?
Select one:
A. Premises and operations liability
B. Personal and advertising injury liability
C. Absolute liability
D. Products and completed operations liability ANSWER -A. Premises and operations
liability
4. The liability loss exposure that exists when an organization is legally respon-
sible for bodily injury or property damage caused by an accident that occurs
on an organization's owned, leased, or rented property is
Select one:
A. Professional liability.
B. Property liability.
, AINS 103 Questions and Correct Answers
C. Operations liability.
D. Premises and operations liability. ANSWER -D. Premises and operations liability.
5. Automobile liability exposures can result from
Select one:
A. Damage to or destruction of an owned vehicle.
B. Loss of use of an owned automobile.
C. Workers compensation laws.
D. Hiring or borrowing an automobile. ANSWER -D. Hiring or borrowing an automobile.
6. To be covered under a workers compensation statute, an injury or disease (in
most states) must meet which one of the following requirements?
Select one:
A. Result from the employer's negligence
B. Occur away from the regular work premises
C. Arise out of employees' job-related injuries and diseases
D. Result in total disability ANSWER -C. Arise out of employees' job-related injuries and diseases
7. Cyber risk intellectual property loss exposures include
Select one:
A. Cyber extortion of trade secrets.
B. Personal and advertising injury liability.
C. Loss to tangible property.
D. Property damage liability. ANSWER -A. Cyber extortion of trade secrets.
8. As part of its assessment of its cyber risk, an organization should consider
whether there are any intangible property exposures. Which one of the follow-
ing would best be classified as an intangible property loss?
Select one:
A. Two disgruntled employees use the computer system to transfer office funds
into their own personal bank accounts.
B. The computer system is hacked and data including credit card numbers are
stolen.
C. Thieves break into the main office and steal several desktop computers.
D. There is a fire in the storage area which destroys the backup copy of the
, AINS 103 Questions and Correct Answers
office computer system. ANSWER -B. The computer system is hacked and data including credit card numbe
are stolen.
9. 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?
Select one:
A. Business personal property
B. Stock
C. Inventory
D. Commercial property ANSWER -A. Business personal property
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 construc-
tion 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?
Select one:
A. Products liability
B. Premises and operations liability
C. Completed operations liability
D. Employers liability ANSWER -C. Completed operations liability
11. 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?
Select one:
A. A defective gas range manufactured by the insured explodes causing injury.
B. A customer's house is set on fire while the insured is doing plumbing work.
C. A dissatisfied customer sues an insured for slander.
D. A customer is injured when she slips on a wet floor in a store. ANSWER -A. A
defective gas range manufactured by the insured explodes causing injury
12. Joe Motors, which services automobiles, wants to maintain the goodwill of
its customers. This is best accomplished by
, AINS 103 Questions and Correct Answers
Select one:
A. Purchasing garage liability insurance.
B. Purchasing garagekeepers insurance.
C. Lowering the physical damage deductible under its business auto insur-
ance.
D. Raising liability limits under its business auto insurance. ANSWER -B. Purchasing
garagekeepers insurance.
13. Workers compensation benefits include which one of the following?
Select one:
A. Death benefits of 100 percent of wage loss
B. Pain and suffering benefits
C. Rehabilitation benefits
D. Property damage benefits ANSWER -C. Rehabilitation benefits
14. An email was sent to a company's employees containing a harmful attach-
ment. Several employees opened the attachment which allowed hackers to
obtain customer contact information. This cyber risk loss is
Select one:
A. Damage to intangible property.
B. Damage to personal property.
C. Damage to tangible property.
D. Errors and omissions liability. ANSWER -A. Damage to intangible property.
15. An individual owns a web-based business. All sales records and contact data
are maintained on the same network server as the website. Someone hacks
into the server and deletes all of the saved data. Which one of the following
types of loss is this?
Select one:
A. Tangible property
B. Personal injury
C. Intangible property
D. Contingent business income ANSWER -C. Intangible property
16. Property insurance policies use the term "personal property" to refer to the
Select one:
