AINS 103 COMPREHENSIVE UPDATED ALL
QUESTIONS AND ANSWERS RATED A+
✔✔Injury arising out of which one of the following offenses could be covered under
Coverage B of the Commercial General Liability policy? - ✔✔D. Wrongful eviction
✔✔Grace is injured at work, and her job responsibilities are reduced for 30 days, after
which time she is permanently restricted by her doctor from lifting greater than 25
pounds. This will eliminate one of her job duties which is reassigned to another
employee. Grace has which one of the following types of workers compensation
disabilities? - ✔✔B. Permanent partial disability
✔✔To what extent are extra expenses covered under the ISO Business Income
Coverage (without Extra Expense) Coverage Form? - ✔✔A. Only to the extent that they
actually reduce the business income loss
✔✔The Malvern Company is a small business insured under a businessowners policy
(BOP) for both building and business personal property. Which one of the following
would be covered under the definition of a building under The Malvern Company's
BOP? - ✔✔C. Air conditioning equipment attached to the building
✔✔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? -
✔✔Comprehensive
✔✔Under the Commercial General Liability (CGL) Coverage Form, medical payments
coverage applies to which one of the following situations? - ✔✔C. Sara is a volunteer
helping the named insured clean up their grounds.
✔✔Which one of the following best describes an advantage to insurers of nonfiled
classes compared with filed classes of inland marine insurance? - ✔✔D. Nonfiled
, classes allow for the customization of policy provisions and rates for a small number of
individual insureds.
✔✔Which one of the following is an example of intangible property exposed to theft
resulting from a cyber attack? - ✔✔D. Trade secrets
✔✔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? - ✔✔D. The compensation the carrier
receives for transporting cargo.
✔✔Sam is a risk manager and is reviewing his insurance program and coverage
options with his insurance broker. Because of fluctuations in sales due to seasonal
marketing promotions, the insurance broker recommends adding Inflation Guard
optional coverage to Sam's Building and Personal Property Coverage Form (BPP). If
Sam adds Inflation Guard as an optional coverage which one of the following is true? -
✔✔B. It automatically increases the limit of insurance by the percentage of annual
increase shown in the declarations.
✔✔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? - ✔✔B. Coverage for infringement of
copyright, patent, trademarks, or trade secret are excluded unless it occurs in an
advertisement exclusion
✔✔The claims manager for Providence Mall knows the longer liability claims are open,
the higher the demand and claim cost. The manager wants to use data analytics to
predict the final settlement amount of bodily injury claims that are open over two years.
The manager would also like to examine how much the amount varies based on the
different areas in the mall and which stores have claims from injury occurring within the
store. Which one of the following methods would help predict the cost of the claims with
those attributes? - ✔✔C. Cluster analysis
✔✔The Random Bookstore (Random) is covered by an unendorsed Commercial
General Liability (CGL) Coverage Form. A customer in the store tripped over her untied
shoelace and fell, breaking her right arm. Which one of the following is a reason
Random's insurer might refuse to pay any damages under Random's CGL policy? -
✔✔B. The insured must be legally obligated before the insurer has the duty of paying.
✔✔The Property Custody Company (PCC) stores customer property for a fee. PCC is
insured under a bailees' customers policy. One day, due to the negligence of an
unrelated party and not due to any negligence of PCC, property owned by one of PCC's
QUESTIONS AND ANSWERS RATED A+
✔✔Injury arising out of which one of the following offenses could be covered under
Coverage B of the Commercial General Liability policy? - ✔✔D. Wrongful eviction
✔✔Grace is injured at work, and her job responsibilities are reduced for 30 days, after
which time she is permanently restricted by her doctor from lifting greater than 25
pounds. This will eliminate one of her job duties which is reassigned to another
employee. Grace has which one of the following types of workers compensation
disabilities? - ✔✔B. Permanent partial disability
✔✔To what extent are extra expenses covered under the ISO Business Income
Coverage (without Extra Expense) Coverage Form? - ✔✔A. Only to the extent that they
actually reduce the business income loss
✔✔The Malvern Company is a small business insured under a businessowners policy
(BOP) for both building and business personal property. Which one of the following
would be covered under the definition of a building under The Malvern Company's
BOP? - ✔✔C. Air conditioning equipment attached to the building
✔✔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? -
✔✔Comprehensive
✔✔Under the Commercial General Liability (CGL) Coverage Form, medical payments
coverage applies to which one of the following situations? - ✔✔C. Sara is a volunteer
helping the named insured clean up their grounds.
✔✔Which one of the following best describes an advantage to insurers of nonfiled
classes compared with filed classes of inland marine insurance? - ✔✔D. Nonfiled
, classes allow for the customization of policy provisions and rates for a small number of
individual insureds.
✔✔Which one of the following is an example of intangible property exposed to theft
resulting from a cyber attack? - ✔✔D. Trade secrets
✔✔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? - ✔✔D. The compensation the carrier
receives for transporting cargo.
✔✔Sam is a risk manager and is reviewing his insurance program and coverage
options with his insurance broker. Because of fluctuations in sales due to seasonal
marketing promotions, the insurance broker recommends adding Inflation Guard
optional coverage to Sam's Building and Personal Property Coverage Form (BPP). If
Sam adds Inflation Guard as an optional coverage which one of the following is true? -
✔✔B. It automatically increases the limit of insurance by the percentage of annual
increase shown in the declarations.
✔✔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? - ✔✔B. Coverage for infringement of
copyright, patent, trademarks, or trade secret are excluded unless it occurs in an
advertisement exclusion
✔✔The claims manager for Providence Mall knows the longer liability claims are open,
the higher the demand and claim cost. The manager wants to use data analytics to
predict the final settlement amount of bodily injury claims that are open over two years.
The manager would also like to examine how much the amount varies based on the
different areas in the mall and which stores have claims from injury occurring within the
store. Which one of the following methods would help predict the cost of the claims with
those attributes? - ✔✔C. Cluster analysis
✔✔The Random Bookstore (Random) is covered by an unendorsed Commercial
General Liability (CGL) Coverage Form. A customer in the store tripped over her untied
shoelace and fell, breaking her right arm. Which one of the following is a reason
Random's insurer might refuse to pay any damages under Random's CGL policy? -
✔✔B. The insured must be legally obligated before the insurer has the duty of paying.
✔✔The Property Custody Company (PCC) stores customer property for a fee. PCC is
insured under a bailees' customers policy. One day, due to the negligence of an
unrelated party and not due to any negligence of PCC, property owned by one of PCC's
