AINS103 PRACTICE EXAM QUESTIONS
AND ANSWERS 100% PASS 2026 EDITION
In property insurance, the term "Property in Transit" refers to which one of the following? -
ANS Property while being transported by trucks, cars, buses, trains, airplanes, and ships.
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? - ANS Cost to rent temporary office space.
Upon entering a restaurant, a customer grasped a handrail the 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? - ANS Premises and operations liability.
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 is categorized as - ANS Completed operations liability.
A carrier that is prevented by an accident from delivering the cargo aboard its ship may face an
exposure called loss of freight, which is - ANS The compensation the carrier receives for
transporting cargo.
The management of Maryland Marine Co. (MMC) must ensure that proper coverage is obtained
for work- related injuries. The employee population of MMC is a mixture of full-time and part-
time employees as well as some casual employees for one-time tasks. Much of MMC's work is
@COPYRIGHT 2026 ALLRIGHTS RESERVED 1
,done by independent contractors and temporary employees during peak seasons. Which one of
the following statements about these persons is true? - ANS Many states workers
compensation statutes exclude casual labor (temporary employees).
When a clothing manufacturer decides to expand the sale of its clothing line by offering internet
purchases, it creates new exposures not otherwise covered, or not fully covered, by a traditional
policy. These include - ANS Loss or damage caused by computer virsuses.
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 - ANS Regulatory and legal compliance.
Perils are an important aspect of property insurance. Which one of the following statements is
correct with respect to perils? - ANS A peril is the actual means by which property is
damaged or destroyed such as fire, lightning, windstorm, hail or theft.
During a business interruption, some of the organizations expenses, called continuing expenses,
will continue, and other expenses, called non-continuing expenses, will not continue. Which one
of the following is an example of a continuing expense? - ANS Payroll of key employees.
Which one of the following loss exposure exist when a business can be held legally liable for
bodily injury or property damaged caused by their repair or contracting work? -
ANS Completed operations liability.
Which one of the following entities would likely have the greatest completed operations loss
exposure? - ANS Paul the plumber.
Inland marine insurance is insurance that covers - ANS Many different classes of property
that typically involve an element of transportation on land.
@COPYRIGHT 2026 ALLRIGHTS RESERVED 2
,Joe signs a contract with Home Builders to install the electrical wiring for a new home. He uses
his own tools and follows the specifications in the contract. Joe is burned while installing the
wiring. Does Home Builders' workers compensation policy cover Joe's injury? - ANS No,
because Joe is not an employee of Home Builders.
Cyber risk intellectual property loss exposures include - ANS Cyber extortion of trade secrets.
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? - ANS The computer system is hacked and data including credit card
numbers are stolen.
Property insurance policies use the term "personal property" to refer to the - ANS Contents
in and around a building.
In business income insurance, the expenses that an organization would not have incurred if the
business interruption have not occurred are called - ANS Extra expenses.
Radley Contracting Company is installing new signage on the front of a building. George, a
passerby walking near the building is injured when a Radley employee accidentally drops a tool
from a crane. George likely has the ability to assert which one the following types of claim? -
ANS Premises and operations liability.
John purchased a new lawnmower two years ago. After significant use, the lawnmower needed
servicing. A repairman sharpened the blade but he failed to reattach it properly to the
lawnmower. When John was using the lawnmower, the blade flew off and seriously injured
John's daughter. From the standpoint of a commercial liability loss for the repair shop, this is an
example of - ANS Completed operations liability.
Automobile liability exposures can result from - ANS Hiring or borrowing an automobile.
@COPYRIGHT 2026 ALLRIGHTS RESERVED 3
, Workers compensation benefits include which one of the following? - ANS Rehabilitation
Benefits.
The unauthorized intrusion into a company's computer network resulting in damage to
intellectual property is best classified as which one of the following types of cyber liability
exposures? - ANS Intangible property.
An email was sent to a company's employee containing a harmful attachment. Several
employees opened the attachment which allowed hackers to obtain customer contact
information. This cyber risk loss is - ANS Damage to intangible property.
Which one of the following best describes real property? - ANS Tangible property that
include land, structures permanently attached to the land, and whatever is growing on the land.
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? - ANS A defective gas range manufactured by the
insured explodes causing injury.
A building contractor uses lower grade materials than called for in the specifications for an
office building. A year after the building was completed, a balcony collapses, injuring several
employees and customers and causing damage to the building and contents. For the building
construction company, this is an example of - ANS A completed operations liability exposure.
To be covered under a workers compensation statute, an injury or disease (in most states) must
meet which one of the following requirements? - ANS Arise out of employees job-related
injuries and diseases.
Which one of the following supply chain exposures can a business mitigate by carefully wording
contracts and diversifying suppliers? - ANS Loss of supply due to external events.
Bio-Pharma was a highly regarded pharmaceutical company. That changed last year when it was
revealed that Bio-Pharma researchers had fabricated test results of the company's new
@COPYRIGHT 2026 ALLRIGHTS RESERVED 4
AND ANSWERS 100% PASS 2026 EDITION
In property insurance, the term "Property in Transit" refers to which one of the following? -
ANS Property while being transported by trucks, cars, buses, trains, airplanes, and ships.
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? - ANS Cost to rent temporary office space.
Upon entering a restaurant, a customer grasped a handrail the 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? - ANS Premises and operations liability.
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 is categorized as - ANS Completed operations liability.
A carrier that is prevented by an accident from delivering the cargo aboard its ship may face an
exposure called loss of freight, which is - ANS The compensation the carrier receives for
transporting cargo.
The management of Maryland Marine Co. (MMC) must ensure that proper coverage is obtained
for work- related injuries. The employee population of MMC is a mixture of full-time and part-
time employees as well as some casual employees for one-time tasks. Much of MMC's work is
@COPYRIGHT 2026 ALLRIGHTS RESERVED 1
,done by independent contractors and temporary employees during peak seasons. Which one of
the following statements about these persons is true? - ANS Many states workers
compensation statutes exclude casual labor (temporary employees).
When a clothing manufacturer decides to expand the sale of its clothing line by offering internet
purchases, it creates new exposures not otherwise covered, or not fully covered, by a traditional
policy. These include - ANS Loss or damage caused by computer virsuses.
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 - ANS Regulatory and legal compliance.
Perils are an important aspect of property insurance. Which one of the following statements is
correct with respect to perils? - ANS A peril is the actual means by which property is
damaged or destroyed such as fire, lightning, windstorm, hail or theft.
During a business interruption, some of the organizations expenses, called continuing expenses,
will continue, and other expenses, called non-continuing expenses, will not continue. Which one
of the following is an example of a continuing expense? - ANS Payroll of key employees.
Which one of the following loss exposure exist when a business can be held legally liable for
bodily injury or property damaged caused by their repair or contracting work? -
ANS Completed operations liability.
Which one of the following entities would likely have the greatest completed operations loss
exposure? - ANS Paul the plumber.
Inland marine insurance is insurance that covers - ANS Many different classes of property
that typically involve an element of transportation on land.
@COPYRIGHT 2026 ALLRIGHTS RESERVED 2
,Joe signs a contract with Home Builders to install the electrical wiring for a new home. He uses
his own tools and follows the specifications in the contract. Joe is burned while installing the
wiring. Does Home Builders' workers compensation policy cover Joe's injury? - ANS No,
because Joe is not an employee of Home Builders.
Cyber risk intellectual property loss exposures include - ANS Cyber extortion of trade secrets.
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? - ANS The computer system is hacked and data including credit card
numbers are stolen.
Property insurance policies use the term "personal property" to refer to the - ANS Contents
in and around a building.
In business income insurance, the expenses that an organization would not have incurred if the
business interruption have not occurred are called - ANS Extra expenses.
Radley Contracting Company is installing new signage on the front of a building. George, a
passerby walking near the building is injured when a Radley employee accidentally drops a tool
from a crane. George likely has the ability to assert which one the following types of claim? -
ANS Premises and operations liability.
John purchased a new lawnmower two years ago. After significant use, the lawnmower needed
servicing. A repairman sharpened the blade but he failed to reattach it properly to the
lawnmower. When John was using the lawnmower, the blade flew off and seriously injured
John's daughter. From the standpoint of a commercial liability loss for the repair shop, this is an
example of - ANS Completed operations liability.
Automobile liability exposures can result from - ANS Hiring or borrowing an automobile.
@COPYRIGHT 2026 ALLRIGHTS RESERVED 3
, Workers compensation benefits include which one of the following? - ANS Rehabilitation
Benefits.
The unauthorized intrusion into a company's computer network resulting in damage to
intellectual property is best classified as which one of the following types of cyber liability
exposures? - ANS Intangible property.
An email was sent to a company's employee containing a harmful attachment. Several
employees opened the attachment which allowed hackers to obtain customer contact
information. This cyber risk loss is - ANS Damage to intangible property.
Which one of the following best describes real property? - ANS Tangible property that
include land, structures permanently attached to the land, and whatever is growing on the land.
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? - ANS A defective gas range manufactured by the
insured explodes causing injury.
A building contractor uses lower grade materials than called for in the specifications for an
office building. A year after the building was completed, a balcony collapses, injuring several
employees and customers and causing damage to the building and contents. For the building
construction company, this is an example of - ANS A completed operations liability exposure.
To be covered under a workers compensation statute, an injury or disease (in most states) must
meet which one of the following requirements? - ANS Arise out of employees job-related
injuries and diseases.
Which one of the following supply chain exposures can a business mitigate by carefully wording
contracts and diversifying suppliers? - ANS Loss of supply due to external events.
Bio-Pharma was a highly regarded pharmaceutical company. That changed last year when it was
revealed that Bio-Pharma researchers had fabricated test results of the company's new
@COPYRIGHT 2026 ALLRIGHTS RESERVED 4
