AINS 103 Exam Newest 2026 Questions and
Correct Detailed Answers Already Graded A+
Which one of the following would be considered an extra expense under the
Business Income (and Extra Expense) Coverage Form of the commercial package
policy?
A. The increased cost of construction to meet new building codes or ordinances
B. The salary of key employees who will continue to work at a temporary location
C. The cost to remove damaged equipment and machinery
D. The increased cost of rent at a temporary location
E. Interest expense
F. Property taxes
G. Normal operating expenses - CORRECT ANSWER-D. The increased cost of
rent at a temporary location
All other options are continuing expenses
,Sam's Hair Salon (SHS) is insured under a commercial package policy with the
Business Income (and Extra Expense) Coverage Form (BIC). The BIC has a
$500,000 limit of insurance and a 70 percent coinsurance provision. A fire
damaged SHS's building and the business was forced to close down for 4 months
while the damage could be repaired. This resulted in a BIC loss of $250,000. The
salon's net income plus operating expenses that would have been incurred in the
absence of the loss for 12 months beginning at the policy's inception was
$700,000. Which one of the following represents the coinsurance basis?
A. $350,000
B. $400,000
C. $500,000
D. $700,000 - CORRECT ANSWER-D. $700,000
Coinsurance basis = net income plus operating expenses that would have been
incurred in the absence of the loss for 12 months beginning at the policy's
inception
Joe's Cleaning Service is having a very good year, with close to a 30 percent
increase in sales. Joe is wondering if this growth will affect his general liability
premium at the end of the policy period. Which one of the following sections of
the general liability coverage form will provide this information?
,A. Endorsements
B. Declarations Form
C. Extended Reporting Period
D. Limits of Insurance - CORRECT ANSWER-B. Declarations Form
The CGL declarations form will include rating and premium auditing information.
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 claimed 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 customer's injury. The CGL insurer will most
likely attempt to do which one of the following?
A. Refuse to defend Patsy's Market based on an exclusion
B. Deny the claim based on the owner's suspicion
C. Defend Patsy's Market in court
, D. Negotiate an out of court settlement - CORRECT ANSWER-D. Negotiate an
out of court settlement
The Crime coverage form that covers losses occurring during the policy period and
discovered no later than 1 year after the policy expiration is
a. Discovery Form
b. Loss Sustained Form - CORRECT ANSWER-b. Loss Sustained Form
In property insurance, the term "property in transit" refers to which one of the
following?
A. Mobile equipment while moving under its own power from one work location
to another
B. Property while being transported by trucks, cars, buses, trains, airplanes, and
ships
C. Property while being moved from one building to another at the insured
location only
D. Owned property while located anywhere other than the insured location -
CORRECT ANSWER-B. Property while being transported by trucks, cars, buses,
trains, airplanes, and ships
Correct Detailed Answers Already Graded A+
Which one of the following would be considered an extra expense under the
Business Income (and Extra Expense) Coverage Form of the commercial package
policy?
A. The increased cost of construction to meet new building codes or ordinances
B. The salary of key employees who will continue to work at a temporary location
C. The cost to remove damaged equipment and machinery
D. The increased cost of rent at a temporary location
E. Interest expense
F. Property taxes
G. Normal operating expenses - CORRECT ANSWER-D. The increased cost of
rent at a temporary location
All other options are continuing expenses
,Sam's Hair Salon (SHS) is insured under a commercial package policy with the
Business Income (and Extra Expense) Coverage Form (BIC). The BIC has a
$500,000 limit of insurance and a 70 percent coinsurance provision. A fire
damaged SHS's building and the business was forced to close down for 4 months
while the damage could be repaired. This resulted in a BIC loss of $250,000. The
salon's net income plus operating expenses that would have been incurred in the
absence of the loss for 12 months beginning at the policy's inception was
$700,000. Which one of the following represents the coinsurance basis?
A. $350,000
B. $400,000
C. $500,000
D. $700,000 - CORRECT ANSWER-D. $700,000
Coinsurance basis = net income plus operating expenses that would have been
incurred in the absence of the loss for 12 months beginning at the policy's
inception
Joe's Cleaning Service is having a very good year, with close to a 30 percent
increase in sales. Joe is wondering if this growth will affect his general liability
premium at the end of the policy period. Which one of the following sections of
the general liability coverage form will provide this information?
,A. Endorsements
B. Declarations Form
C. Extended Reporting Period
D. Limits of Insurance - CORRECT ANSWER-B. Declarations Form
The CGL declarations form will include rating and premium auditing information.
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 claimed 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 customer's injury. The CGL insurer will most
likely attempt to do which one of the following?
A. Refuse to defend Patsy's Market based on an exclusion
B. Deny the claim based on the owner's suspicion
C. Defend Patsy's Market in court
, D. Negotiate an out of court settlement - CORRECT ANSWER-D. Negotiate an
out of court settlement
The Crime coverage form that covers losses occurring during the policy period and
discovered no later than 1 year after the policy expiration is
a. Discovery Form
b. Loss Sustained Form - CORRECT ANSWER-b. Loss Sustained Form
In property insurance, the term "property in transit" refers to which one of the
following?
A. Mobile equipment while moving under its own power from one work location
to another
B. Property while being transported by trucks, cars, buses, trains, airplanes, and
ships
C. Property while being moved from one building to another at the insured
location only
D. Owned property while located anywhere other than the insured location -
CORRECT ANSWER-B. Property while being transported by trucks, cars, buses,
trains, airplanes, and ships
