AINS 103 UPDATED FINAL EXAMS ALL QUESTIONS
AND ANSWERS RATED A+
✔✔When Sylvester Properties suffered a $500,000 loss of business income, it filed a
claim under the Business Income (and Extra Expense) Coverage Form (BIC) of its
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? - ✔✔C. The loss or damage must be caused by a covered cause of loss.
✔✔Karma Tea Shop (KTS) has three locations in Boston. The business is insured by a
commercial package policy with the Business Income (and Extra Expense) Coverage
Form (BIC). The BIC has a $300,000 limit of insurance which applies to all three
locations and a 70 percent coinsurance provision. The business income insurance for
KTS is written on a - ✔✔B. Blanket basis.
✔✔Michael is a general liability claims adjuster for Goshen Mutual. He wants to see if
an insured has any endorsements that apply to its general liability policy. Which one of
the following sections of the coverage form would provide this information for Michael? -
✔✔D. Declarations
✔✔Under Coverage A of the commercial general liability coverage form (CGL), property
damage would include all of the following, EXCEPT: - ✔✔A. Infringement of copyright
✔✔Chuckie's chicken distributor researches the benefits of consuming chicken versus
consuming beef. In November 2011, Chuckie's publishes a brochure outlining the
potential health hazards of consuming beef and explaining why chicken is a healthier
alternative. Chuckie continues to publish and distribute the same brochure for six
months. In March 2012, several beef distributors file a suit against Chuckie's for
personal and advertising injury. Which one of the following exclusions would apply to
this claim under Coverage B of Chuckie's Commercial General Liability Coverage Form
, (CGL) with a policy period of January 2012 - January 2013? - ✔✔C. Material published
prior to the policy period
✔✔The Commercial General Liability (CGL) Coverage B—Personal and Advertising
Injury Liability provides coverage for which one of the following? - ✔✔B. False arrest
✔✔The Coverage B—Personal and Advertising Injury Liability of the Commercial
General Liability (CGL) Coverage Form parallels the Coverage A insuring agreement,
but personal and advertising injury applies to an - ✔✔A. Offense arising out of the
named insured's business.
✔✔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? - ✔✔A. He is entitled to workers compensation benefits.
✔✔Lucy, the owner of Lucy's Flower Shop, was delivering a vase of flowers to a
customer, Mrs. White. When Mrs. White opened her front door, her dog ran outside,
knocking the flowers from Lucy's hands, and causing the vase to shatter and injure Mrs.
White. Although the customer insisted that she would be fine, Lucy received a medical
bill for injuries to Mrs. White two years later. The medical treatment had been received
one week before Lucy received the bill. Lucy explains the situation to her insurer and
requests coverage under her Commercial General Liability Coverage Form (CGL).
Which one of the following is correct regarding whether the medical expenses will be
covered under Coverage C—Medical Payments of the CGL? - ✔✔B. No, because the
medical expenses must be incurred and reported to the insurer within one year after the
date of the accident.
✔✔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? - ✔✔$0
✔✔JG Painting is insured under a monoline commercial auto policy. The business is
located in Pennsylvania, but also does work in New Jersey and Delaware. Which one of
the following would be used to add PIP insurance coverage to an auto policy? - ✔✔A.
Endorsements
AND ANSWERS RATED A+
✔✔When Sylvester Properties suffered a $500,000 loss of business income, it filed a
claim under the Business Income (and Extra Expense) Coverage Form (BIC) of its
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? - ✔✔C. The loss or damage must be caused by a covered cause of loss.
✔✔Karma Tea Shop (KTS) has three locations in Boston. The business is insured by a
commercial package policy with the Business Income (and Extra Expense) Coverage
Form (BIC). The BIC has a $300,000 limit of insurance which applies to all three
locations and a 70 percent coinsurance provision. The business income insurance for
KTS is written on a - ✔✔B. Blanket basis.
✔✔Michael is a general liability claims adjuster for Goshen Mutual. He wants to see if
an insured has any endorsements that apply to its general liability policy. Which one of
the following sections of the coverage form would provide this information for Michael? -
✔✔D. Declarations
✔✔Under Coverage A of the commercial general liability coverage form (CGL), property
damage would include all of the following, EXCEPT: - ✔✔A. Infringement of copyright
✔✔Chuckie's chicken distributor researches the benefits of consuming chicken versus
consuming beef. In November 2011, Chuckie's publishes a brochure outlining the
potential health hazards of consuming beef and explaining why chicken is a healthier
alternative. Chuckie continues to publish and distribute the same brochure for six
months. In March 2012, several beef distributors file a suit against Chuckie's for
personal and advertising injury. Which one of the following exclusions would apply to
this claim under Coverage B of Chuckie's Commercial General Liability Coverage Form
, (CGL) with a policy period of January 2012 - January 2013? - ✔✔C. Material published
prior to the policy period
✔✔The Commercial General Liability (CGL) Coverage B—Personal and Advertising
Injury Liability provides coverage for which one of the following? - ✔✔B. False arrest
✔✔The Coverage B—Personal and Advertising Injury Liability of the Commercial
General Liability (CGL) Coverage Form parallels the Coverage A insuring agreement,
but personal and advertising injury applies to an - ✔✔A. Offense arising out of the
named insured's business.
✔✔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? - ✔✔A. He is entitled to workers compensation benefits.
✔✔Lucy, the owner of Lucy's Flower Shop, was delivering a vase of flowers to a
customer, Mrs. White. When Mrs. White opened her front door, her dog ran outside,
knocking the flowers from Lucy's hands, and causing the vase to shatter and injure Mrs.
White. Although the customer insisted that she would be fine, Lucy received a medical
bill for injuries to Mrs. White two years later. The medical treatment had been received
one week before Lucy received the bill. Lucy explains the situation to her insurer and
requests coverage under her Commercial General Liability Coverage Form (CGL).
Which one of the following is correct regarding whether the medical expenses will be
covered under Coverage C—Medical Payments of the CGL? - ✔✔B. No, because the
medical expenses must be incurred and reported to the insurer within one year after the
date of the accident.
✔✔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? - ✔✔$0
✔✔JG Painting is insured under a monoline commercial auto policy. The business is
located in Pennsylvania, but also does work in New Jersey and Delaware. Which one of
the following would be used to add PIP insurance coverage to an auto policy? - ✔✔A.
Endorsements
