AINS 103: CHAPTER 1 EXAM QUESTIONS
AND ANSWERS 100% PASS 2026 EDITION
A Commercial Property Loss Exposure is: - ANS Is any condition that presents the possibility
that an organization will sustain a loss resulting from damage or theft of its property.
Real Property (Realty): - ANS Tangible property consisting of land, all structures permanently
attached to the land, (including fixtures permanently attached) and whatever is growing on the
land.
Personal Property: - ANS Includes moveable items owned by a business, such as supplies,
furniture, computers, machinery, tools, and some vehicles, (forklifts.)
Categories of Commercial Property: - ANS Buildings, personal property contained in
buildings, money and securities, vehicles and watercraft, property in the possession of others,
property in transit, floating property.
Significant perils which can result in catastrophic loss: - ANS Fire, Theft, Windstorm, Flood,
Earthquake, Terrorism, Vandalism, and War.
For most businesses, what type of peril poses the greatest risk of a large or total property loss? -
ANS Fire.
Almost all businesses face commercial property loss exposures because they own or have a legal
interest in what 2 kinds of property? - ANS Real property, and personal property.
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, Joanne owns a construction business. What kind of property are the company forklifts
considered? - ANS Personal property.
Financial consequences of loss; Reduced Value: - ANS When a loss occurs, the property's
value can be reduced or eliminated.
Financial consequences of loss; Lost Income: - ANS A business may not be able to use the
property in question until it has been repaired, restored or replaced.
Financial consequences of loss; Extra Expenses: - ANS Businesses sometimes have to pay
additional costs to keep operating after a loss.
Key parts of calculating a business income loss are: - ANS Determining the lost revenue and
any continuing and extra expenses the business incurred during the period of interruption.
Continuing Expenses: - ANS Expenses that continue to be incurred during a business
interruption, such as payroll of key employees, debt repayments, taxes, and insurance
premiums.
Extra Expenses: - ANS Expenses that are paid in addition to continuing expenses for the
purpose of mitigating the effects of a business interruption, such as relocation, utilities, payroll,
and equipment.
T/F: The causes of business income losses associated with property exposures are typically the
same as those for physical damage losses. - ANS True.
When property that a business uses to generate income becomes damaged or stolen, what kind
of loss is typically suffered? - ANS Business income loss.
What kinds of expenses constitute continuing expenses? - ANS Payroll of key employees,
debt repayments, property and payroll taxes, rent or lease payments, and insurance premiums.
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AND ANSWERS 100% PASS 2026 EDITION
A Commercial Property Loss Exposure is: - ANS Is any condition that presents the possibility
that an organization will sustain a loss resulting from damage or theft of its property.
Real Property (Realty): - ANS Tangible property consisting of land, all structures permanently
attached to the land, (including fixtures permanently attached) and whatever is growing on the
land.
Personal Property: - ANS Includes moveable items owned by a business, such as supplies,
furniture, computers, machinery, tools, and some vehicles, (forklifts.)
Categories of Commercial Property: - ANS Buildings, personal property contained in
buildings, money and securities, vehicles and watercraft, property in the possession of others,
property in transit, floating property.
Significant perils which can result in catastrophic loss: - ANS Fire, Theft, Windstorm, Flood,
Earthquake, Terrorism, Vandalism, and War.
For most businesses, what type of peril poses the greatest risk of a large or total property loss? -
ANS Fire.
Almost all businesses face commercial property loss exposures because they own or have a legal
interest in what 2 kinds of property? - ANS Real property, and personal property.
@COPYRIGHT 2026 ALLRIGHTS RESERVED 1
, Joanne owns a construction business. What kind of property are the company forklifts
considered? - ANS Personal property.
Financial consequences of loss; Reduced Value: - ANS When a loss occurs, the property's
value can be reduced or eliminated.
Financial consequences of loss; Lost Income: - ANS A business may not be able to use the
property in question until it has been repaired, restored or replaced.
Financial consequences of loss; Extra Expenses: - ANS Businesses sometimes have to pay
additional costs to keep operating after a loss.
Key parts of calculating a business income loss are: - ANS Determining the lost revenue and
any continuing and extra expenses the business incurred during the period of interruption.
Continuing Expenses: - ANS Expenses that continue to be incurred during a business
interruption, such as payroll of key employees, debt repayments, taxes, and insurance
premiums.
Extra Expenses: - ANS Expenses that are paid in addition to continuing expenses for the
purpose of mitigating the effects of a business interruption, such as relocation, utilities, payroll,
and equipment.
T/F: The causes of business income losses associated with property exposures are typically the
same as those for physical damage losses. - ANS True.
When property that a business uses to generate income becomes damaged or stolen, what kind
of loss is typically suffered? - ANS Business income loss.
What kinds of expenses constitute continuing expenses? - ANS Payroll of key employees,
debt repayments, property and payroll taxes, rent or lease payments, and insurance premiums.
@COPYRIGHT 2026 ALLRIGHTS RESERVED 2
