AINS 103 Exam Review Questions With Complete Solutions
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? Correct Answers D. The compensation
the carrier receives for transporting cargo.
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 Correct Answers B. The compensation the carrier
receives for transporting cargo.
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 D. Does
not cover the director's injuries sustained because they happened
during an athletic event.
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? Correct Answers B. Coverage for
,infringement of copyright, patent, trademarks, or trade secret are
excluded unless it occurs in an advertisement exclusion
An animal damaged the interior of an insured's automobile while
it was parked with the windows down. Which one of the
following types of physical damage coverage under the Business
Auto Coverage Form (BACF) would cover this loss? Correct
Answers Comprehensive
An email was sent to a company's employees containing a
harmful attachment. Several employees opened the attachment
which allowed hackers to obtain customer contact information.
This cyber risk loss is Correct Answers D. Damage to
intangible property.
An insured keeps his truck in a garage. A deer gets trapped in
the garage and, in an attempt to escape, climbs on top of the
truck, breaking the windshield and causing several dents in the
hood. The insured's Business Auto Coverage Form (BACF)
provides physical damage coverage for specified causes of loss
with a $100 deductible and collision with a $250 deductible. It
will cost the insured $750 to replace the broken windshield and
$1,200 to repair the dents. How much, if anything, will the
business auto insurer pay for this loss? Correct Answers $0
Anita is the claims manager for the Mid-Atlantic region. She
knows that the longer that liability claims stay open, the higher
the final settlement cost. Anita wants to use data analytics to
help her predict the final settlement amount of slip and falls
claims that remain open for more one year. She would also like
to see how much the amount varies in the different geographic
, areas within her territory. Which one of the following methods
would help Anita predict the cost of the claims with those
attributes? Correct Answers A. Cluster analysis
Austin cut his finger while working at a jobsite for Walsh
Builders. He had to go to a hospital, where he received 5 stitches
and a tetanus vaccine. When he received the hospital bill for
$990, Austin made a claim under Coverage C—Medical
Payments of Walsh Builders' CGL policy. Which one of the
following reasons would the CGL insurer use for denying
Austin's claim? Correct Answers A. He is entitled to workers
compensation benefits.
Ava is Regional Manager for Goshen Mutual. She is looking
over the past auto losses for Disposal Inc. She is tracking the
experience of their drivers, the location of accidents, and the
severity of the injury to their employees and the public. She is
trying to determine the frequency and severity of the auto
exposure for Disposal and to use the future models to suggest
where Disposal allocates their loss prevention resources. Which
one of the following forms of analysis is Ava using to help
Disposal address their auto exposure? Correct Answers C.
Predictive Modeling
Billy owns a baseball souvenir store in Cooperstown, NY. He
insured his store under a Building and Personal Property
Coverage Form (BPP) with a $275,000 limit and a $1,500
deductible. A large fire in the store caused significant damage
amounting to $310,000 in covered damages. How much would
Billy's insurer pay under his BPP? Correct Answers $275K
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? Correct Answers D. The compensation
the carrier receives for transporting cargo.
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 Correct Answers B. The compensation the carrier
receives for transporting cargo.
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 D. Does
not cover the director's injuries sustained because they happened
during an athletic event.
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? Correct Answers B. Coverage for
,infringement of copyright, patent, trademarks, or trade secret are
excluded unless it occurs in an advertisement exclusion
An animal damaged the interior of an insured's automobile while
it was parked with the windows down. Which one of the
following types of physical damage coverage under the Business
Auto Coverage Form (BACF) would cover this loss? Correct
Answers Comprehensive
An email was sent to a company's employees containing a
harmful attachment. Several employees opened the attachment
which allowed hackers to obtain customer contact information.
This cyber risk loss is Correct Answers D. Damage to
intangible property.
An insured keeps his truck in a garage. A deer gets trapped in
the garage and, in an attempt to escape, climbs on top of the
truck, breaking the windshield and causing several dents in the
hood. The insured's Business Auto Coverage Form (BACF)
provides physical damage coverage for specified causes of loss
with a $100 deductible and collision with a $250 deductible. It
will cost the insured $750 to replace the broken windshield and
$1,200 to repair the dents. How much, if anything, will the
business auto insurer pay for this loss? Correct Answers $0
Anita is the claims manager for the Mid-Atlantic region. She
knows that the longer that liability claims stay open, the higher
the final settlement cost. Anita wants to use data analytics to
help her predict the final settlement amount of slip and falls
claims that remain open for more one year. She would also like
to see how much the amount varies in the different geographic
, areas within her territory. Which one of the following methods
would help Anita predict the cost of the claims with those
attributes? Correct Answers A. Cluster analysis
Austin cut his finger while working at a jobsite for Walsh
Builders. He had to go to a hospital, where he received 5 stitches
and a tetanus vaccine. When he received the hospital bill for
$990, Austin made a claim under Coverage C—Medical
Payments of Walsh Builders' CGL policy. Which one of the
following reasons would the CGL insurer use for denying
Austin's claim? Correct Answers A. He is entitled to workers
compensation benefits.
Ava is Regional Manager for Goshen Mutual. She is looking
over the past auto losses for Disposal Inc. She is tracking the
experience of their drivers, the location of accidents, and the
severity of the injury to their employees and the public. She is
trying to determine the frequency and severity of the auto
exposure for Disposal and to use the future models to suggest
where Disposal allocates their loss prevention resources. Which
one of the following forms of analysis is Ava using to help
Disposal address their auto exposure? Correct Answers C.
Predictive Modeling
Billy owns a baseball souvenir store in Cooperstown, NY. He
insured his store under a Building and Personal Property
Coverage Form (BPP) with a $275,000 limit and a $1,500
deductible. A large fire in the store caused significant damage
amounting to $310,000 in covered damages. How much would
Billy's insurer pay under his BPP? Correct Answers $275K
