AINS 103 Simulated Exam Latest 2026 Questions
and Correct Detailed Answers Already Graded A+
Charlene's Clothing is a retail store selling expensive women's clothing. It is
insured under an unendorsed Commercial General Liability (CGL) Coverage Form.
One day an employee suspects that a customer is about to shoplift an expensive
handbag, so she grabs the customer and detains her until the police arrive. The
customer files a suit against Charlene's for humiliation and minor bruising. This is
an example of which one of the following CGL loss exposures? - CORRECT
ANSWER-Personal and advertising injury provides coverage for injuries such as
loss of reputation, humiliation, and economic loss arising out of any of several
offenses. False arrest is one of the offenses.
Joshua owns a mid-sized contracting company and was considering a job on a
multi-million dollar project. Due to the size of the project, Joshua had difficulty
determining the maximum possible loss. Considering the size of the project,
Joshua should do which one of the following? - CORRECT ANSWER-Purchase
excess limits provided by an excess or umbrella liability policy.
To what extent are extra expenses covered under the ISO Business Income
Coverage (without Extra Expense) Coverage Form? - CORRECT ANSWER-Only
to the extent that they actually reduce the business income loss.
,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
$20,000. What is the total amount that the BOP insurer will pay for this claim? -
CORRECT ANSWER-$320,000.
Grace is injured at work, and her job responsibilities are reduced for 30 days, after
which time she is permanently restricted by her doctor from lifting greater than
25 pounds. This will eliminate one of her job duties which is reassigned to another
employee. Grace has which one of the following types of workers compensation
disabilities? - CORRECT ANSWER-Permanent partial disability.
John's Hardware store is located along Main Street in a section dedicated to small
businesses. One day a new employee was helping a customer fill their propane
cylinder when an explosion occurred damaging a number of vehicles, injuring the
customer and the new employee, and damaging the adjoining business. John's
employee was found to be at fault for the explosion. Which one of the following
would be covered under John's Coverage A of commercial general liability (CGL)
policy? - CORRECT ANSWER-The injury to John's customer.
, 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 ANSWER-The
compensation the carrier receives for transporting cargo.
Injury arising out of which one of the following offenses could be covered under
Coverage B of the Commercial General Liability policy? - CORRECT ANSWER-
Injury arising out of WRONGFUL EVICTION could be covered under Coverage B of
the Commercial General Liability policy.
The claims manager for Providence Mall knows the longer liability claims are
open, the higher the demand and claim cost. The manager wants to use data
analytics to predict the final settlement amount of bodily injury claims that are
open over two years. The manager would also like to examine how much the
amount varies based on the different areas in the mall and which stores have
claims from injury occurring within the store. Which one of the following methods
would help predict the cost of the claims with those attributes? - CORRECT
ANSWER-CLUSTER ANALYSIS can be used to group claims that have similar
attributes. These groupings can then be used in a variety of ways, such as
predicting the cost of claims that fall into a particular group but have not yet been
settled.
and Correct Detailed Answers Already Graded A+
Charlene's Clothing is a retail store selling expensive women's clothing. It is
insured under an unendorsed Commercial General Liability (CGL) Coverage Form.
One day an employee suspects that a customer is about to shoplift an expensive
handbag, so she grabs the customer and detains her until the police arrive. The
customer files a suit against Charlene's for humiliation and minor bruising. This is
an example of which one of the following CGL loss exposures? - CORRECT
ANSWER-Personal and advertising injury provides coverage for injuries such as
loss of reputation, humiliation, and economic loss arising out of any of several
offenses. False arrest is one of the offenses.
Joshua owns a mid-sized contracting company and was considering a job on a
multi-million dollar project. Due to the size of the project, Joshua had difficulty
determining the maximum possible loss. Considering the size of the project,
Joshua should do which one of the following? - CORRECT ANSWER-Purchase
excess limits provided by an excess or umbrella liability policy.
To what extent are extra expenses covered under the ISO Business Income
Coverage (without Extra Expense) Coverage Form? - CORRECT ANSWER-Only
to the extent that they actually reduce the business income loss.
,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
$20,000. What is the total amount that the BOP insurer will pay for this claim? -
CORRECT ANSWER-$320,000.
Grace is injured at work, and her job responsibilities are reduced for 30 days, after
which time she is permanently restricted by her doctor from lifting greater than
25 pounds. This will eliminate one of her job duties which is reassigned to another
employee. Grace has which one of the following types of workers compensation
disabilities? - CORRECT ANSWER-Permanent partial disability.
John's Hardware store is located along Main Street in a section dedicated to small
businesses. One day a new employee was helping a customer fill their propane
cylinder when an explosion occurred damaging a number of vehicles, injuring the
customer and the new employee, and damaging the adjoining business. John's
employee was found to be at fault for the explosion. Which one of the following
would be covered under John's Coverage A of commercial general liability (CGL)
policy? - CORRECT ANSWER-The injury to John's customer.
, 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 ANSWER-The
compensation the carrier receives for transporting cargo.
Injury arising out of which one of the following offenses could be covered under
Coverage B of the Commercial General Liability policy? - CORRECT ANSWER-
Injury arising out of WRONGFUL EVICTION could be covered under Coverage B of
the Commercial General Liability policy.
The claims manager for Providence Mall knows the longer liability claims are
open, the higher the demand and claim cost. The manager wants to use data
analytics to predict the final settlement amount of bodily injury claims that are
open over two years. The manager would also like to examine how much the
amount varies based on the different areas in the mall and which stores have
claims from injury occurring within the store. Which one of the following methods
would help predict the cost of the claims with those attributes? - CORRECT
ANSWER-CLUSTER ANALYSIS can be used to group claims that have similar
attributes. These groupings can then be used in a variety of ways, such as
predicting the cost of claims that fall into a particular group but have not yet been
settled.
