AINS 103 (Latest 2023/ 2024 Update) Exploring Commercial Insurance Exam Practice Questions and Verified Answers| 100% Correct| Grade A

AINS 103 (Latest 2023/ 2024 Update)

Exploring Commercial Insurance Exam

Practice Questions and Verified Answers|

100% Correct| Grade A

Q: Joe Motors, which services automobiles, wants to maintain the goodwill of its customers.

This is best accomplished by

Select one:

A. Purchasing garage liability insurance.

B. Purchasing garage keepers insurance.

C. Lowering the physical damage deductible under its business auto insurance.

D. Raising liability limits under its business auto insurance.

Answer:

B. Purchasing garagekeepers insurance.

Q: Workers compensation benefits include which one of the following?

Select one:

A. Death benefits of 100 percent of wage loss

B. Pain and suffering benefits

C. Rehabilitation benefits

D. Property damage benefits

Answer:

C. Rehabilitation benefits

Q: 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

Select one:

A. Damage to intangible property.

B. Damage to personal property.

C. Damage to tangible property.

D. Errors and omissions liability.

Answer:

A. Damage to intangible property.

Q: An individual owns a web-based business. All sales records and contact data are maintained

on the same network server as the website. Someone hacks into the server and deletes all of the

saved data. Which one of the following types of loss is this?

Select one:

A. Tangible property

B. Personal injury

C. Intangible property

D. Contingent business income

Answer:

C. Intangible property

Q: Property insurance policies use the term "personal property" to refer to the

Select one:

A. Property in transit.

B. Contents in and around a building.

C. Buildings not attached to the main building.

D. Company's copyrights and trademarks.

Answer:

B. Contents in and around a building.

Q: In business income insurance, the expenses that an organization would not have incurred if

the business interruption had not occurred are called

Select one:

A. Continuing expenses.

B. Contingent expenses.

C. Excludable expenses.

D. Extra expenses.

Answer:

D. Extra expenses.

Q: A vehicle owner had a tire store install four new wheels and tires on the vehicle. On the way

home from the store, one of the wheels came off, causing the vehicle to accidentally run off the

road and strike a tree. The vehicle owner sued the tire store for failing to properly tighten the lug

nuts on the vehicle. The loss exposure faced by the tire store in this case is known as

Select one:

A. Employers liability.

B. Completed operations liability.

C. Automobile liability.

D. Products liability.

Answer:

B. Completed operations liability.

Q: Which one of the following loss exposures exist when a business can be held legally liable

for bodily injury or property damage caused by their repair or contracting work?

Select one:

A. Operations liability

B. Completed operations liability

C. Workers' compensation liability

D. Products liability

Answer:

B. Completed operations liability

Q: Inland marine insurance is insurance that covers

Select one:

A. Businesses that own or operate watercraft, or import or export goods.

B. Many different classes of property that typically involve an element of transportation on land.

C. Companies that ship goods by commercial vessel on inland waterways.

D. Miscellaneous lines such as burglary, glass, and steam boilers.

Answer:

B. Many different classes of property that typically involve an element of transportation on land.

Q: Sue is injured at work, and her job responsibilities are reduced for 30 days, after which time

she is fully recovered. Sue has which one of the following types of workers compensation

disabilities?

Select one:

A. Temporary total disability

B. Permanent partial disability

C. Temporary partial disability

D. Permanent total disability

Answer:

C. Temporary partial disability

Q: Meat Products Company (MPC) runs packing plants in three Midwest states. The company

was in the news recently because of its labor practices. The Department of Labor (DOL)

investigated complaints from five female employees that MPC discriminated against them. The

DOL found the claim was true. The Immigration and Naturalization Service (INS) found that the

company employed illegal immigrants and paid them less than the minimum wage. When this

news became public, MPC's reputation was severely harmed. This scenario illustrates which

source of reputation risk?

Select one:

A. Corporate governance and leadership

B. Corporate social responsibility

C. Regulatory and legal compliance

D. Communication and crisis management

Answer:

C. Regulatory and legal compliance

Q: The two categories of property that are exposed to loss from cyber risk are

Select one:

A. Insured and uninsured.

B. Covered and not covered.

C. Tangible and intangible.

D. Real and personal.

Answer: