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

AINS 103 (Latest 2023/ 2024 Update)

Exploring Commercial Insurance Exam

Review Questions and Verified Answers|

100% Correct| Grade A

Q: Which one of the following is one of the covered causes of loss in the commercial property

policy Causes of Loss—Basic form?

Answer:

Vandalism

Q: Billy owns a baseball souvenir store in Cooperstown, 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?

Answer:

$275K

Q: Which one of the following statements about Inflation Guard optional coverage of the

Building and Personal Property Coverage Form (BPP) is true?

Answer:

C. It is automatically increases the limit of insurance by the percentage of annual increase shown

in the declarations.

Q: Which one of the following would be covered under the Extra Expense insuring agreement

of the Business Income (and Extra Expense) Coverage Form?

Answer:

D. Costs to move to a temporary location

Q: Which one of the following would be considered an extra expense under the Business

Income (and Extra Expense) Coverage Form of the commercial package policy?

Answer:

C. The increased cost of rent at a temporary location

Q: 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?

Answer:

C. The loss or damage must be caused by a covered cause of loss.

Q: 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

Answer:

B. Blanket basis.

Q: 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?

Answer:

D. Declarations

Q: Under Coverage A of the commercial general liability coverage form (CGL), property

damage would include all of the following, EXCEPT:

Answer:

A. Infringement of copyright

Q: 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?

Answer:

C. Material published prior to the policy period

Q: The Commercial General Liability (CGL) Coverage B—Personal and Advertising Injury

Liability provides coverage for which one of the following?

Answer:

B. False arrest

Q: 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

Answer:

A. Offense arising out of the named insured's business.

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