AINS 103 Study Guide (Latest 2023/ 2024 Update) Exploring Commercial Insurance | Complete with Questions and Verified Answers| 100% Correct| Grade A

AINS 103 Study Guide (Latest 2023/ 2024

Update) Exploring Commercial Insurance |

Complete with Questions and Verified

Answers| 100% Correct| Grade A

Q: Marine insurance includes both ocean and inland marine coverage in the U.S. only

Answer:

TRUE

Q: Disease thought to be caused by work or the work environment.

Answer:

Occupational disease

Q: A description of the property insured would be located on the ________ _____ of a CPP

Answer:

Declarations page

Q: Three types of causes of loss forms in a commercial property policy: _____, ______,

_______

Answer:

basic, broad, special

Q: The ____ and ____ BPP forms are nearly identical, using the _____ _____ approach

Answer:

basic and broad, use 'named perils' approach

Q: In addition to what is covered on the basic form, the broad form covers:

-_____ ______

- weight of ___, ___ or ____

- _____ damage

Answer:

Falling objects

Weight of ice, snow, sleet

Water damage

Q: Fire, Lightning, Explosion, windstorm, hail, smoke, sprinkler damage are all covered on the:

A. Broad Form Only

B. Basic Form Only

C. Both

Answer:

C. Both

Q: The special BPP form insurances on an _____ perils basis

Answer:

open, anything that isn't specifically excluded

Q: The amount an insurer is obligated to pay for a loss covered by the BPP is determined by the

______ of _____ and the ______

Answer:

Limits of insurance and the deductible

Q: BPP Limits of Insurance can either be ______ or ______

Answer:

specific or blanket

Q: Removing the debris after a fire, recovering data from damaged servers would be things

covered in a BPP's _______ _______ and _______

Answer:

Additional coverages and extensions

Q: Although subject to special limits, the amounts payable under coverage extensions are in

________ to the _______ _______ of insurance stated in the declarations

Answer:

in addition; overall limits

Q: TRUE/FALSE: Business income insurance policies with and without additional coverage

for extra expenses use the same insuring agreement

Answer:

TRUE

Q: TRUE/FALSE: The Business Income With Extra Expense Coverage form covers extra

expenses, but only if they reduce (i.e. mitigate the effects of) the business income loss

Answer:

FALSE - expenses like cleaning and restocking do not reduce the business income loss (i.e. are

not critical to normal business operations like rent, utilities, payroll) but are still covered

Q: TRUE/FALSE: The Business Income and Extra Expense Coverage form covers extra

expenses, even if they do not reduce the business income loss

Answer:

TRUE

Q: The limit of insurance stated in the BIC declarations is the _______ amount the insurer will

pay for loss in any ___ occurrence

Answer:

Maximum amount for any one occurrence

Q: If BIC is written on a specific basis, a limit is set for ____ _____ insured

Answer:

each building

Q: If BIC is written on a blanket basis, a limit applies to ___ ______ at one location (or ___

_____ at multiple locations)

Answer:

all buildings at one location, or all buildings at multiple locations

Q: In a BIC policy, the amount of insurance required = _________ __ x ________ _____

Answer:

coinsurance % x coinsurance basis