AINS 103 Exam Review Correctly Solved Questions And Answers | Update
2026
1. In property insurance, the term "property in transit" C. Property while being
refers to which one of the following? transported by trucks, cars,
buses, trains, airplanes,
and ships
2. Extra expenses are expenses, in addition to ordinary B. Cost to rent temporary
expenses, that an organization incurs to mitigate the oflce space
effects of a business interruption. Which one of the
following is an example of an extra expense?
3. Radley Contracting Company is installing new signage B. Premises and opera-
on the front of a building. George, a passerby walking tions liability
near the building is injured when a Radley employee
accidentally drops a tool from a crane. George likely
has the ability to assert which one the following types
of claim?
4. Which one of the following entities would likely have A. Paul the plumber
the greatest completed operations loss exposure?
5. A carrier that is prevented by an accident from deliv- B. The compensation the
ering the cargo aboard its ship may face an exposure carrier receives for trans-
called loss of freight, which is porting cargo.
6. To be covered under a workers compensation statute, A. Arise out of employ-
an injury or disease (in most states) must meet which ees' job-related injuries
one of the following requirements? and diseases
7. The unauthorized intrusion into a company's comput- D. Intangible property
er network resulting in damage to intellectual property
is best classified as which one of the following types of
cyber liability exposures?
, AINS 103 Exam Review Correctly Solved Questions And Answers | Update
2026
8. An email was sent to a company's employees contain- D. Damage to intangible
ing a harmful attachment. Several employees opened property.
the attachment which allowed hackers to obtain cus-
tomer contact information. This cyber risk loss is
9. NH Manufacturing insures its building and person- A. Causes of loss form
al property under the commercial property coverage
part of a commercial package policy (CPP). During a
blizzard, a portion of the building's roof collapsed from
the weight of snow. The risk manager pulled out the
CPP to make sure that the building was covered for this
type of loss. Which one of the following components of
the commercial property coverage part would provide
the risk manager with information on the covered per-
ils?
10. Which one of the following is one of the covered causes Vandalism
of loss in the commercial property policy Causes of
Loss—Basic form?
11. Billy owns a baseball souvenir store in Cooperstown, $275K
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?
12. Which one of the following statements about Inflation C. It is automatically in-
Guard optional coverage of the Building and Personal creases the limit of insur-
Property Coverage Form (BPP) is true? ance by the percentage of
, annual increase shown in
the declarations.
13. Which one of the following would be covered under D. Costs to move to a tem-
the Extra Expense insuring agreement of the Business porary location
Income (and Extra Expense) Coverage Form?
14. Which one of the following would be considered an C. The increased cost of
extra expense under the Business Income (and Extra rent at a temporary loca-
Expense) Coverage Form of the commercial package tion
policy?
15. When Sylvester Properties suffered a $500,000 loss of C. The loss or damage
business income, it filed a claim under the Business must be caused by a cov-
Income (and Extra Expense) Coverage Form (BIC) of its ered cause of loss.
commercial package policy. In order for the loss to be
covered, the loss of business income must be due to a
necessary suspension in operations caused by a direct
physical loss or damage to property at the premises for
which BIC is shown in the policy declarations. Which
one of the following is also part of the criteria for the
loss to be covered?
16. Karma Tea Shop (KTS) has three locations in Boston. B. Blanket basis.
The business is insured by a commercial package poli-
cy with the Business Income (and Extra Expense) Cov-
erage Form (BIC). The BIC has a $300,000 limit of in-
surance which applies to all three locations and a 70
percent coinsurance provision. The business income
insurance for KTS is written on a
17. D. Declarations
2026
1. In property insurance, the term "property in transit" C. Property while being
refers to which one of the following? transported by trucks, cars,
buses, trains, airplanes,
and ships
2. Extra expenses are expenses, in addition to ordinary B. Cost to rent temporary
expenses, that an organization incurs to mitigate the oflce space
effects of a business interruption. Which one of the
following is an example of an extra expense?
3. Radley Contracting Company is installing new signage B. Premises and opera-
on the front of a building. George, a passerby walking tions liability
near the building is injured when a Radley employee
accidentally drops a tool from a crane. George likely
has the ability to assert which one the following types
of claim?
4. Which one of the following entities would likely have A. Paul the plumber
the greatest completed operations loss exposure?
5. A carrier that is prevented by an accident from deliv- B. The compensation the
ering the cargo aboard its ship may face an exposure carrier receives for trans-
called loss of freight, which is porting cargo.
6. To be covered under a workers compensation statute, A. Arise out of employ-
an injury or disease (in most states) must meet which ees' job-related injuries
one of the following requirements? and diseases
7. The unauthorized intrusion into a company's comput- D. Intangible property
er network resulting in damage to intellectual property
is best classified as which one of the following types of
cyber liability exposures?
, AINS 103 Exam Review Correctly Solved Questions And Answers | Update
2026
8. An email was sent to a company's employees contain- D. Damage to intangible
ing a harmful attachment. Several employees opened property.
the attachment which allowed hackers to obtain cus-
tomer contact information. This cyber risk loss is
9. NH Manufacturing insures its building and person- A. Causes of loss form
al property under the commercial property coverage
part of a commercial package policy (CPP). During a
blizzard, a portion of the building's roof collapsed from
the weight of snow. The risk manager pulled out the
CPP to make sure that the building was covered for this
type of loss. Which one of the following components of
the commercial property coverage part would provide
the risk manager with information on the covered per-
ils?
10. Which one of the following is one of the covered causes Vandalism
of loss in the commercial property policy Causes of
Loss—Basic form?
11. Billy owns a baseball souvenir store in Cooperstown, $275K
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?
12. Which one of the following statements about Inflation C. It is automatically in-
Guard optional coverage of the Building and Personal creases the limit of insur-
Property Coverage Form (BPP) is true? ance by the percentage of
, annual increase shown in
the declarations.
13. Which one of the following would be covered under D. Costs to move to a tem-
the Extra Expense insuring agreement of the Business porary location
Income (and Extra Expense) Coverage Form?
14. Which one of the following would be considered an C. The increased cost of
extra expense under the Business Income (and Extra rent at a temporary loca-
Expense) Coverage Form of the commercial package tion
policy?
15. When Sylvester Properties suffered a $500,000 loss of C. The loss or damage
business income, it filed a claim under the Business must be caused by a cov-
Income (and Extra Expense) Coverage Form (BIC) of its ered cause of loss.
commercial package policy. In order for the loss to be
covered, the loss of business income must be due to a
necessary suspension in operations caused by a direct
physical loss or damage to property at the premises for
which BIC is shown in the policy declarations. Which
one of the following is also part of the criteria for the
loss to be covered?
16. Karma Tea Shop (KTS) has three locations in Boston. B. Blanket basis.
The business is insured by a commercial package poli-
cy with the Business Income (and Extra Expense) Cov-
erage Form (BIC). The BIC has a $300,000 limit of in-
surance which applies to all three locations and a 70
percent coinsurance provision. The business income
insurance for KTS is written on a
17. D. Declarations
