AINS 103: Simulated Exam Questions With Complete
Solutions
A carrier is prevented from delivering cargo aboard its ship due
to an accident that occurred while at sea. One of the losses the
carrier may face is loss of freight. Loss of freight refers to which
one of the following? Correct Answers The compensation the
carrier receives for transporting cargo.
A company owns land that is used as a softball diamond and
recreational park for hosting employee picnics. Once a year the
company also allows a non-profit organization to hold a softball
game on these premises. During this year's softball game, the
director of the non-profit was injured when a softball hit him in
the head. He asked the company that owns the land to pay for
his trip to the emergency room. The company's unendorsed
Commercial General Liability policy: Correct Answers Does
not cover the director's injuries sustained because they happened
during an athletic event.
A private company posted a video on the internet introducing a
new product. The music used in the video was from a
copyrighted song. When the company sought coverage under
Part B of their Commercial General Liability (CGL) Coverage
Form after a claim was filed against them for damages, coverage
will most likely be excluded based on which one of the
following exclusions? Correct Answers Coverage for
infringement of copyright, patent, trademarks, or trade secret are
excluded unless it occurs in an advertisement exclusion.
, Alice has the use of a company car insured with a Business Auto
Coverage Form with one endorsement for uninsured motorists
(UM) coverage. Alice was in an accident while driving the car
and sustained the following losses:
$ 200 - housekeeper for one day
$ 300 - physical therapy and rehabilitation
$ 400 - lost wages
$1,000 - hospital bills
$2,000 - doctor's bill
The other driver was at fault but had no insurance. Assuming
that no other insurance applies, how much can Alice collect
under her employer's UM coverage? Correct Answers $3,900.
All of the losses are covered under uninsured motorist coverage.
An animal damaged the interior of an insured's automobile while
it was parked with the windows down. Which one of the
following types of physical damage coverage under the Business
Auto Coverage Form (BACF) would cover this loss? Correct
Answers Comprehensive coverage applies to any peril except
collision or overturn or a peril specifically excluded.
An injured customer sued the ABC General Store for damages
resulting from bodily injury sustained when the customer
slipped and fell while shopping in the hardware section. The
customer suffered a knee and elbow injury. ABC General is
insured under a businessowners policy (BOP) with a $500,000
liability and medical expense limit of insurance. The insurer
defended ABC General against the suit, but the court awarded
the customer $285,000 for his injury and prejudgment interest of
$15,000. The insurer's cost of defending the grocery store was
Solutions
A carrier is prevented from delivering cargo aboard its ship due
to an accident that occurred while at sea. One of the losses the
carrier may face is loss of freight. Loss of freight refers to which
one of the following? Correct Answers The compensation the
carrier receives for transporting cargo.
A company owns land that is used as a softball diamond and
recreational park for hosting employee picnics. Once a year the
company also allows a non-profit organization to hold a softball
game on these premises. During this year's softball game, the
director of the non-profit was injured when a softball hit him in
the head. He asked the company that owns the land to pay for
his trip to the emergency room. The company's unendorsed
Commercial General Liability policy: Correct Answers Does
not cover the director's injuries sustained because they happened
during an athletic event.
A private company posted a video on the internet introducing a
new product. The music used in the video was from a
copyrighted song. When the company sought coverage under
Part B of their Commercial General Liability (CGL) Coverage
Form after a claim was filed against them for damages, coverage
will most likely be excluded based on which one of the
following exclusions? Correct Answers Coverage for
infringement of copyright, patent, trademarks, or trade secret are
excluded unless it occurs in an advertisement exclusion.
, Alice has the use of a company car insured with a Business Auto
Coverage Form with one endorsement for uninsured motorists
(UM) coverage. Alice was in an accident while driving the car
and sustained the following losses:
$ 200 - housekeeper for one day
$ 300 - physical therapy and rehabilitation
$ 400 - lost wages
$1,000 - hospital bills
$2,000 - doctor's bill
The other driver was at fault but had no insurance. Assuming
that no other insurance applies, how much can Alice collect
under her employer's UM coverage? Correct Answers $3,900.
All of the losses are covered under uninsured motorist coverage.
An animal damaged the interior of an insured's automobile while
it was parked with the windows down. Which one of the
following types of physical damage coverage under the Business
Auto Coverage Form (BACF) would cover this loss? Correct
Answers Comprehensive coverage applies to any peril except
collision or overturn or a peril specifically excluded.
An injured customer sued the ABC General Store for damages
resulting from bodily injury sustained when the customer
slipped and fell while shopping in the hardware section. The
customer suffered a knee and elbow injury. ABC General is
insured under a businessowners policy (BOP) with a $500,000
liability and medical expense limit of insurance. The insurer
defended ABC General against the suit, but the court awarded
the customer $285,000 for his injury and prejudgment interest of
$15,000. The insurer's cost of defending the grocery store was
