AINS103 Practice Questions
AINS 103 2026 Exam All
Answers and Illustrations Given
In property insurance, the term "Property in Transit" refers to which one of
the following? - 🧠 ANSWER ✔✔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? - 🧠 ANSWER
✔✔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? - 🧠
ANSWER ✔✔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 - 🧠 ANSWER ✔✔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 - 🧠 ANSWER
✔✔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 done by
independent contractors and temporary employees during peak seasons.
Which one of the following statements about these persons is true? - 🧠
,ANSWER ✔✔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 - 🧠
ANSWER ✔✔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 - 🧠 ANSWER ✔✔Regulatory and legal compliance.
Perils are an important aspect of property insurance. Which one of the
following statements is correct with respect to perils? - 🧠 ANSWER ✔✔A
peril is the actual means by which property is damaged or destroyed such
as fire, lightning, windstorm, hail or theft.
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2026. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
3
, 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? - 🧠 ANSWER ✔✔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? - 🧠 ANSWER ✔✔Completed operations liability.
Which one of the following entities would likely have the greatest completed
operations loss exposure? - 🧠 ANSWER ✔✔Paul the plumber.
Inland marine insurance is insurance that covers - 🧠 ANSWER ✔✔Many
different classes of property that typically involve an element of
transportation on land.
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? - 🧠 ANSWER ✔✔No,
because Joe is not an employee of Home Builders.
AINS 103 2026 Exam All
Answers and Illustrations Given
In property insurance, the term "Property in Transit" refers to which one of
the following? - 🧠 ANSWER ✔✔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? - 🧠 ANSWER
✔✔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? - 🧠
ANSWER ✔✔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 - 🧠 ANSWER ✔✔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 - 🧠 ANSWER
✔✔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 done by
independent contractors and temporary employees during peak seasons.
Which one of the following statements about these persons is true? - 🧠
,ANSWER ✔✔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 - 🧠
ANSWER ✔✔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 - 🧠 ANSWER ✔✔Regulatory and legal compliance.
Perils are an important aspect of property insurance. Which one of the
following statements is correct with respect to perils? - 🧠 ANSWER ✔✔A
peril is the actual means by which property is damaged or destroyed such
as fire, lightning, windstorm, hail or theft.
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2026. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
3
, 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? - 🧠 ANSWER ✔✔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? - 🧠 ANSWER ✔✔Completed operations liability.
Which one of the following entities would likely have the greatest completed
operations loss exposure? - 🧠 ANSWER ✔✔Paul the plumber.
Inland marine insurance is insurance that covers - 🧠 ANSWER ✔✔Many
different classes of property that typically involve an element of
transportation on land.
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? - 🧠 ANSWER ✔✔No,
because Joe is not an employee of Home Builders.
