AINS 103 Practice Exam - Questions and Answers (Complete Solutions) Which one of the following best describes real property? A. Property being shipped
... [Show More] to or from others. B. Business personal property that includes furniture, machinery and equipment, and stock/inventory. C. Tangible property that includes land, structures permanently attached to the land, and whatever is growing on the land. D. Vehicles, merchandise, furniture, tools, and similar items. Extra expenses are expenses, in addition to ordinary expenses, that an organization incurs to mitigate the effects of a business interruption. Which one of the following is an example of an extra expense? A. Cost to rent temporary office space B. Insurance premiums C. Debt repayments D. Payroll of key employees Upon entering a restaurant, a customer grasped a handrail that broke off, causing the customer to fall and break his wrist. This is an example of which one of the following types of commercial general liability loss? A. Premises and operations liability B. Personal and advertising injury liability C. Absolute liability D. Products and completed operations liability The liability loss exposure that exists when an organization is legally responsible for bodily injury or property damage caused by an accident that occurs on an organization's owned, leased, or rented property is A. Professional liability. B. Property liability. C. Operations liability. D. Premises and operations liability. Automobile liability exposures can result from A. Damage to or destruction of an owned vehicle. B. Loss of use of an owned automobile. C. Workers compensation laws. D. Hiring or borrowing an automobile.
To be covered under a workers compensation statute, an injury or disease (in most states) must meet which one of the following requirements? A. Result from the employer's negligence B. Occur away from the regular work premises C. Arise out of employees' job-related injuries and diseases D. Result in total disability Cyber risk intellectual property loss exposures include A. Cyber extortion of trade secrets. B. Personal and advertising injury liability. C. Loss to tangible property. D. Property damage liability. As part of its assessment of its cyber risk, an organization should consider whether there are any intangible property exposures. Which one of the following would best be classified as an intangible property loss? A. Two disgruntled employees use the computer system to transfer office funds into their own personal bank accounts. B. The computer system is hacked and data including credit card numbers are stolen. C. Thieves break into the main office and steal several desktop computers. D. There is a fire in the storage area which destroys the backup copy of the office computer system. A commercial building may contain furniture, machinery and equipment and finished products. Which one of the following is the term generally used in property insurance policies to refer to all these types of property? A. Business personal property B. Stock C. Inventory D. Commercial property A family recently purchased a new home constructed by a residential home builder. Two months after taking possession, several of the family members were injured when the roof suddenly collapsed. The family sued the construction company and was awarded monetary damages for their injuries. This is an example of which one of the following types of commercial liability loss exposure for the construction company? A. Products liability B. Premises and operations liability C. Completed operations liability D. Employers liability Which one of the following is an example of injury or damage arising from an occurrence that would be covered by the products and completed operations liability portion of the Commercial General Liability (CGL) Coverage Form? A. A defective gas range manufactured by the insured explodes causing injury. B. A customer's house is set on fire while the insured is doing plumbing work. C. A dissatisfied customer sues an insured for slander. D. A customer is injured when she slips on a wet floor in a store. Joe Motors, which services automobiles, wants to maintain the goodwill of its customers. This is best accomplished by A. Purchasing garage liability insurance. B. Purchasing garagekeepers insurance. C. Lowering the physical damage deductible under its business auto insurance. D. Raising liability limits under its business auto insurance. Workers compensation benefits include which one of the following? A. Death benefits of 100 percent of wage loss B. Pain and suffering benefits C. Rehabilitation benefits D. Property damage benefits 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 A. Damage to intangible property. B. Damage to personal property. C. Damage to tangible property. D. Errors and omissions liability. 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? A. Tangible property B. Personal injury C. Intangible property D. Contingent business income Property insurance policies use the term "personal property" to refer to the 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. In business income insurance, the expenses that an organization would not have incurred if the business interruption had not occurred are called A. Continuing expenses. B. Contingent expenses. C. Excludable expenses. D. Extra expenses. 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 A. Employers liability. B. Completed operations liability. C. Automobile liability. D. Products liability. 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? A. Operations liability B. Completed operations liability C. Workers' compensation liability D. Products liability Inland marine insurance is insurance that covers 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. 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? A. Temporary total disability B. Permanent partial disability C. Temporary partial disability D. Permanent total disability 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? A. Corporate governance and leadership B. Corporate social responsibility C. Regulatory and legal compliance D. Communication and crisis management The two categories of property that are exposed to loss from cyber risk are A. Insured and uninsured. B. Covered and not covered. C. Tangible and intangible. D. Real and personal. Perils are an important aspect of property insurance. Which one of the following statements is correct with respect to perils? A. A peril is the actual means by which property is damaged or destroyed such as fire, lightning, windstorm, hail, or theft. B. In order to be covered by an insurance policy, a peril must be defined and described in that policy. C. Property insurance policies can cover specific perils and cannot exclude other perils. D. A peril is anything that increases the frequency or the severity of a loss. A contractor is hired to install a new concrete sidewalk in front of a store. Several weeks after the sidewalk was installed, the concrete buckles and a passerby trips and falls on the buckled sidewalk. The passerby sues the contractor to recover medical expenses incurred due to the fall. This commercial liability loss is categorized as A. Products liability. B. Environmental liability. C. Professional liability. D. Completed operations liability. Which one of the following entities would likely have the greatest completed operations loss exposure? A. Paul the plumber B. Doris the physician [Show Less]