AINS 103 Questions with CORRECT Answers
Question:
While performing duties for the business, all of the following would be an insured under
Business Liability Coverage of a partnership's businessowners policy (BOP), EXCEPT:
Answer:
All executive officers of an LLC.
Question:
Which one of the following would be covered under the Extra Expense insuring
agreement of the Business Income (and Extra Expense) Coverage Form?
Answer:
Costs to move office equipment to a substitute location.
Question:
An intangible asset resulting from a collection of perceptions and opinions, past and
present, about an organization that resides in the consciousness of its stakeholders is
known as an organization's:
Answer:
Reputation.
Question:
Ivan is a commercial insurance producer looking to expand his book of business. He is
researching local businesses trying to determine which businesses might be eligible for
the businessowners policy (BOP) and which would not be eligible. Which one of the
following businesses would be ineligible for BOP coverage?
Answer:
Amusement parks are generally not eligible for BOP coverage. Retail stores, small
restaurants with limited cooking, and trade contractors are generally eligible for BOP
coverage.
Question:
Marlene is a producer for East Goshen Mutual. She recently met with the owners of
Sugartown Farms to try and determine if they are eligible for the ISO businessowners
policy (BOP). Which one of the following facts about Sugartown Farms would prevent it
from being eligible for the BOP?
Answer:
Sugartown Farms has a restaurant with a bar for local patrons.
, Question:
Sugartown Industries insures its building and personal property under the commercial
property coverage part of a commercial package policy (CPP). Following a lightning
storm, a portion of the building was damaged from a small fire. The operations 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 operations manager with information on the covered perils? - The causes of
loss form. The three types of cause of loss forms - Basic, Broad, and Special
Answer:
allow the insured to select, or the underwriter to offer, a range of covered perils.
Question:
Under the Commercial General Liability (CGL) Coverage Form, medical payments
coverage applies to which one of the following situations?
Answer:
Sara is a volunteer helping the named insured clean up their grounds.
Question:
Which one of the following causes of loss is covered by the commercial property policy
Causes of LossBroad Form but not the Basic Form?
Answer:
Falling objects.
Question:
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 customers is
destroyed while in PCC's custody. Which one of the following describes how PCC's
insurer will handle the claim for the damage to PCC's customer's property under PCC's
bailees' customers policy?
Answer:
It will pay the claim because PCC's policy covers damage to customers' goods in its
possession regardless of negligence.
Question:
While performing duties for the business, all of the following would be an insured under
Business Liability Coverage of a partnership's businessowners policy (BOP), EXCEPT:
Answer:
All executive officers of an LLC.
Question:
Which one of the following would be covered under the Extra Expense insuring
agreement of the Business Income (and Extra Expense) Coverage Form?
Answer:
Costs to move office equipment to a substitute location.
Question:
An intangible asset resulting from a collection of perceptions and opinions, past and
present, about an organization that resides in the consciousness of its stakeholders is
known as an organization's:
Answer:
Reputation.
Question:
Ivan is a commercial insurance producer looking to expand his book of business. He is
researching local businesses trying to determine which businesses might be eligible for
the businessowners policy (BOP) and which would not be eligible. Which one of the
following businesses would be ineligible for BOP coverage?
Answer:
Amusement parks are generally not eligible for BOP coverage. Retail stores, small
restaurants with limited cooking, and trade contractors are generally eligible for BOP
coverage.
Question:
Marlene is a producer for East Goshen Mutual. She recently met with the owners of
Sugartown Farms to try and determine if they are eligible for the ISO businessowners
policy (BOP). Which one of the following facts about Sugartown Farms would prevent it
from being eligible for the BOP?
Answer:
Sugartown Farms has a restaurant with a bar for local patrons.
, Question:
Sugartown Industries insures its building and personal property under the commercial
property coverage part of a commercial package policy (CPP). Following a lightning
storm, a portion of the building was damaged from a small fire. The operations 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 operations manager with information on the covered perils? - The causes of
loss form. The three types of cause of loss forms - Basic, Broad, and Special
Answer:
allow the insured to select, or the underwriter to offer, a range of covered perils.
Question:
Under the Commercial General Liability (CGL) Coverage Form, medical payments
coverage applies to which one of the following situations?
Answer:
Sara is a volunteer helping the named insured clean up their grounds.
Question:
Which one of the following causes of loss is covered by the commercial property policy
Causes of LossBroad Form but not the Basic Form?
Answer:
Falling objects.
Question:
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 customers is
destroyed while in PCC's custody. Which one of the following describes how PCC's
insurer will handle the claim for the damage to PCC's customer's property under PCC's
bailees' customers policy?
Answer:
It will pay the claim because PCC's policy covers damage to customers' goods in its
possession regardless of negligence.
