AINS 103 COMPREHENSIVE STUDY GUIDE AND
REVISION 2026
◉ 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?
Select one:
A. Cost to rent temporary office space
B. Insurance premiums
C. Debt repayments
D. Payroll of key employees Answer: A. Cost to rent temporary office
space
◉ 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?
Select one:
A. Premises and operations liability
B. Personal and advertising injury liability
C. Absolute liability
,D. Products and completed operations liability Answer: A. Premises
and 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
Select one:
A. Professional liability.
B. Property liability.
C. Operations liability.
D. Premises and operations liability. Answer: D. Premises and
operations liability.
◉ Automobile liability exposures can result from
Select one:
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. Answer: 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?
Select one:
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 Answer: C. Arise out of employees' job-
related injuries and diseases
◉ Cyber risk intellectual property loss exposures include
Select one:
A. Cyber extortion of trade secrets.
B. Personal and advertising injury liability.
C. Loss to tangible property.
D. Property damage liability. Answer: A. 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?
Select one:
, 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. Answer: B. The computer system is
hacked and data including credit card numbers are stolen.
◉ 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?
Select one:
A. Business personal property
B. Stock
C. Inventory
D. Commercial property Answer: A. Business personal 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
REVISION 2026
◉ 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?
Select one:
A. Cost to rent temporary office space
B. Insurance premiums
C. Debt repayments
D. Payroll of key employees Answer: A. Cost to rent temporary office
space
◉ 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?
Select one:
A. Premises and operations liability
B. Personal and advertising injury liability
C. Absolute liability
,D. Products and completed operations liability Answer: A. Premises
and 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
Select one:
A. Professional liability.
B. Property liability.
C. Operations liability.
D. Premises and operations liability. Answer: D. Premises and
operations liability.
◉ Automobile liability exposures can result from
Select one:
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. Answer: 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?
Select one:
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 Answer: C. Arise out of employees' job-
related injuries and diseases
◉ Cyber risk intellectual property loss exposures include
Select one:
A. Cyber extortion of trade secrets.
B. Personal and advertising injury liability.
C. Loss to tangible property.
D. Property damage liability. Answer: A. 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?
Select one:
, 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. Answer: B. The computer system is
hacked and data including credit card numbers are stolen.
◉ 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?
Select one:
A. Business personal property
B. Stock
C. Inventory
D. Commercial property Answer: A. Business personal 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
