AINS 103 FINAL EXAM PRACTICE TEST WITH
ANSWERS 2026
◉ Suzanne is a commercial lines underwriter. Which one of the
following components of the general liability coverage forms would
she use to tailor the form to meet the specialized needs of an
insured? Answer: Endorsement.
◉ The Commercial General Liability (CGL) Coverage form defines
the term "occurrence" as Answer: An accident, including continuous
or repeated exposure to substantially the same general harmful
conditions.
◉ Under Coverage A of the commercial general liability coverage
form (CGL), property damage would include all of the following
EXCEPT: Answer: Infringement of copyright.
◉ Injury arising out of which one of the following offenses could be
covered under Coverage B of the Commercial General Liability
policy? Answer: False arrest.
◉ A not-for-profit public interest group posted a newspaper
editorial on its electronic chatroom that falsely accused a local
politician of criminal activity. The public interest group is insured
under an unendorsed Commercial General Liability (CLG) policy. The
,politician who was falsely accused filed suit against the public
interest group for libel. Which one of these statements best
describes the probable response the public interest group will
receive from its insurer after the insurer reviews these facts?
Answer: The claim will be denied because Coverage B of the CGL
policy excludes any injury arising out of an electronic chatroom or
electronic bulletin board.
◉ Which one of these offenses would not be considered a personal
and advertising injury under Coverage B of the Commercial General
Liability Coverage Form? Answer: Refusing to hire a qualified job
applicant because of his ethnicity.
◉ Under the Commercial General Liability (CGL) Coverage Form,
medical payments coverage applies to which one of the following?
Answer: A volunteer worker of the named insured.
◉ Joan was using a screwdriver to open a can of paint, when the tip
of the screwdriver broke off and hit her above the eye. She rushed to
the eye doctor because her eye hurt and kept watering. After a
thorough exam, the eye doctor sent her home with some eye drops
and a bill for $450. Joan paid the bill and immediately filed a claim
against Blue Tools (the screwdriver manufacturer) under Coverage C
- Medical Payments of its CGL policy. Which one of the following
statements is correct regarding this claim? Answer: The claim would
not be paid under Coverage C because it falls under the products -
completed operations hazard.
,◉ Monica and her girlfriend were shopping at Allen Leather Shop.
When they were leaving, the stores security guard stopped Monica
and wrongly accused her of shoplifting. Which one of the following
coverages under Allen Leather Shop's commercial general liability
coverage from would provide coverage if Monica filed a suit against
the store? Answer: Coverage B.
◉ A customer filed a suit against Patsy's Market, claiming that she
was injured when she slipped and fell in the produce section. The
customer claims that she broke her elbow, had to have surgery, and
missed a week of work. The owner of Patsy's Market told its
commercial general liability (CGL) insurer that the produce area was
always clean and that the claim was suspicious. After reviewing the
medical bills and video footage from the market, the insurer
concluded that Patsy's Market was probably liable for the customers
injury. The CGL insurer will most likely attempt to do which of the
following? Answer: Negotiate an out of court settlement.
◉ The Auto Medical Payments Coverage endorsement to the
business auto policy provides coverage for Answer: Reasonable and
necessary medical and funeral expenses incurred by a person
injured while occupying a covered auto.
◉ JG Painting is insured under a monoline commercial auto policy.
The business is located in Pennsylvania, but also does work in New
Jersey and Delaware. Which one of the following would be used to
, add PIP insurance coverage to an auto policy? Answer:
Endorsements.
◉ The Morlyn Corporation has a Business Auto Coverage Form
(BACF) that provides liability coverage for any auto. In addition to
the named insured, which one of the following would also be an
insured under Morlyn's BACF when driving a covered auto? Answer:
An employee driving a vehicle leased by Morlyn for business
purposes.
◉ Part 2 of the Workers Compensation and Employers Liability
Policy requires which one of the following with respect to covered
injuries? Answer: The injury must arise out of employment
necessary or incidental to the insureds work in a state or territory
listed in the policy.
◉ What, if anything, is a difference between an excess liability policy
and an umbrella liability policy? Answer: While both policies
provide excess limits, an umbrella policy may also provide coverage
not available in the underlying policies.
◉ One distinction between the umbrella liability policy and the
excess liability policy is that an Answer: Umbrella policy provides
broader protection than the underlying policy.
ANSWERS 2026
◉ Suzanne is a commercial lines underwriter. Which one of the
following components of the general liability coverage forms would
she use to tailor the form to meet the specialized needs of an
insured? Answer: Endorsement.
◉ The Commercial General Liability (CGL) Coverage form defines
the term "occurrence" as Answer: An accident, including continuous
or repeated exposure to substantially the same general harmful
conditions.
◉ Under Coverage A of the commercial general liability coverage
form (CGL), property damage would include all of the following
EXCEPT: Answer: Infringement of copyright.
◉ Injury arising out of which one of the following offenses could be
covered under Coverage B of the Commercial General Liability
policy? Answer: False arrest.
◉ A not-for-profit public interest group posted a newspaper
editorial on its electronic chatroom that falsely accused a local
politician of criminal activity. The public interest group is insured
under an unendorsed Commercial General Liability (CLG) policy. The
,politician who was falsely accused filed suit against the public
interest group for libel. Which one of these statements best
describes the probable response the public interest group will
receive from its insurer after the insurer reviews these facts?
Answer: The claim will be denied because Coverage B of the CGL
policy excludes any injury arising out of an electronic chatroom or
electronic bulletin board.
◉ Which one of these offenses would not be considered a personal
and advertising injury under Coverage B of the Commercial General
Liability Coverage Form? Answer: Refusing to hire a qualified job
applicant because of his ethnicity.
◉ Under the Commercial General Liability (CGL) Coverage Form,
medical payments coverage applies to which one of the following?
Answer: A volunteer worker of the named insured.
◉ Joan was using a screwdriver to open a can of paint, when the tip
of the screwdriver broke off and hit her above the eye. She rushed to
the eye doctor because her eye hurt and kept watering. After a
thorough exam, the eye doctor sent her home with some eye drops
and a bill for $450. Joan paid the bill and immediately filed a claim
against Blue Tools (the screwdriver manufacturer) under Coverage C
- Medical Payments of its CGL policy. Which one of the following
statements is correct regarding this claim? Answer: The claim would
not be paid under Coverage C because it falls under the products -
completed operations hazard.
,◉ Monica and her girlfriend were shopping at Allen Leather Shop.
When they were leaving, the stores security guard stopped Monica
and wrongly accused her of shoplifting. Which one of the following
coverages under Allen Leather Shop's commercial general liability
coverage from would provide coverage if Monica filed a suit against
the store? Answer: Coverage B.
◉ A customer filed a suit against Patsy's Market, claiming that she
was injured when she slipped and fell in the produce section. The
customer claims that she broke her elbow, had to have surgery, and
missed a week of work. The owner of Patsy's Market told its
commercial general liability (CGL) insurer that the produce area was
always clean and that the claim was suspicious. After reviewing the
medical bills and video footage from the market, the insurer
concluded that Patsy's Market was probably liable for the customers
injury. The CGL insurer will most likely attempt to do which of the
following? Answer: Negotiate an out of court settlement.
◉ The Auto Medical Payments Coverage endorsement to the
business auto policy provides coverage for Answer: Reasonable and
necessary medical and funeral expenses incurred by a person
injured while occupying a covered auto.
◉ JG Painting is insured under a monoline commercial auto policy.
The business is located in Pennsylvania, but also does work in New
Jersey and Delaware. Which one of the following would be used to
, add PIP insurance coverage to an auto policy? Answer:
Endorsements.
◉ The Morlyn Corporation has a Business Auto Coverage Form
(BACF) that provides liability coverage for any auto. In addition to
the named insured, which one of the following would also be an
insured under Morlyn's BACF when driving a covered auto? Answer:
An employee driving a vehicle leased by Morlyn for business
purposes.
◉ Part 2 of the Workers Compensation and Employers Liability
Policy requires which one of the following with respect to covered
injuries? Answer: The injury must arise out of employment
necessary or incidental to the insureds work in a state or territory
listed in the policy.
◉ What, if anything, is a difference between an excess liability policy
and an umbrella liability policy? Answer: While both policies
provide excess limits, an umbrella policy may also provide coverage
not available in the underlying policies.
◉ One distinction between the umbrella liability policy and the
excess liability policy is that an Answer: Umbrella policy provides
broader protection than the underlying policy.
