AINS 103 SIM Exam Questions with Verified
Solutions.
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 Answer Does not
cover the director's injuries sustained because they happened during an athletic event.
Lawn Chemical Company applies fertilizer and weed killer to lawns and shrubs. Which
one of the following is a liability loss exposure to which Lawn Chemical Company likely
has a significant exposure? - Correct Answer Completed operations liability
Sugartown Industries insures its building and personal property under the commercial
property coverage part of a commercial package policy (CPP). Following a lightning
storm, a portion of the building was damaged from a small fire. The operations manager
pulled out the CPP to make sure that the building was covered for this type of loss.
Which one of the following components of the commercial property coverage part would
provide the operations manager with information on the covered perils? - Correct
Answer Causes of loss form
Sandy owns a small retail store. Sandy's store is covered under a businessowners
policy (BOP) with a $500,000 limit of insurance for its business personal property and a
$1,000 deductible. Sandy did not purchase any optional coverages. A fire broke out in a
neighboring store, and spread to Sandy's store. Sandy claimed the following damages:
Description Amount Cash in a money drawer $5,000 Damage to the building $50,000
Damage to a computer and printer in the office area $15,000 Damage to a personalized
sign attached to the building $1,000
How much will the BOP insurer pay for this loss? - Correct Answer $65,000
Ivan is a commercial insurance producer looking to expand his book of business. He is
researching local businesses trying to determine which businesses might be eligible for
the businessowners policy (BOP) and which would not be eligible. Which one of the
following businesses would be ineligible for BOP coverage? - Correct Answer Jilian's
Amusement Park
Business income insurance covers which one of the following types of losses that could
result from a fire? - Correct Answer The extra expenses for renting a temporary office
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
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
Answer $3,900
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 Answer
Comprehensive
Injury arising out of which one of the following offenses could be covered under
Coverage B of the Commercial General Liability policy? - Correct Answer Wrongful
eviction
Which one of the following best describes an advantage to insurers of nonfiled classes
compared with filed classes of inland marine insurance? - Correct Answer Nonfiled
classes allow for the customization of policy provisions and rates for a small number of
individual insureds.
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.
Which one of the following is an example of intangible property exposed to theft
resulting from a cyber attack? - Correct Answer Trade secrets
The Workers Compensation and Employers Liability Insurance Policy provides that the
insured is responsible to reimburse the insurer in which one of the following situations? -
Correct Answer Penalties levied under a workers compensation law against the insured
for noncompliance with health and safety laws and regulations.
Devon Distributing purchased smart watches for all their long haul drivers. The devices
were monitored from the headquarters so the location of the driver was always known to
Devon management. The watches could also send text messages and accept phone
Solutions.
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 Answer Does not
cover the director's injuries sustained because they happened during an athletic event.
Lawn Chemical Company applies fertilizer and weed killer to lawns and shrubs. Which
one of the following is a liability loss exposure to which Lawn Chemical Company likely
has a significant exposure? - Correct Answer Completed operations liability
Sugartown Industries insures its building and personal property under the commercial
property coverage part of a commercial package policy (CPP). Following a lightning
storm, a portion of the building was damaged from a small fire. The operations manager
pulled out the CPP to make sure that the building was covered for this type of loss.
Which one of the following components of the commercial property coverage part would
provide the operations manager with information on the covered perils? - Correct
Answer Causes of loss form
Sandy owns a small retail store. Sandy's store is covered under a businessowners
policy (BOP) with a $500,000 limit of insurance for its business personal property and a
$1,000 deductible. Sandy did not purchase any optional coverages. A fire broke out in a
neighboring store, and spread to Sandy's store. Sandy claimed the following damages:
Description Amount Cash in a money drawer $5,000 Damage to the building $50,000
Damage to a computer and printer in the office area $15,000 Damage to a personalized
sign attached to the building $1,000
How much will the BOP insurer pay for this loss? - Correct Answer $65,000
Ivan is a commercial insurance producer looking to expand his book of business. He is
researching local businesses trying to determine which businesses might be eligible for
the businessowners policy (BOP) and which would not be eligible. Which one of the
following businesses would be ineligible for BOP coverage? - Correct Answer Jilian's
Amusement Park
Business income insurance covers which one of the following types of losses that could
result from a fire? - Correct Answer The extra expenses for renting a temporary office
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
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
Answer $3,900
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 Answer
Comprehensive
Injury arising out of which one of the following offenses could be covered under
Coverage B of the Commercial General Liability policy? - Correct Answer Wrongful
eviction
Which one of the following best describes an advantage to insurers of nonfiled classes
compared with filed classes of inland marine insurance? - Correct Answer Nonfiled
classes allow for the customization of policy provisions and rates for a small number of
individual insureds.
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.
Which one of the following is an example of intangible property exposed to theft
resulting from a cyber attack? - Correct Answer Trade secrets
The Workers Compensation and Employers Liability Insurance Policy provides that the
insured is responsible to reimburse the insurer in which one of the following situations? -
Correct Answer Penalties levied under a workers compensation law against the insured
for noncompliance with health and safety laws and regulations.
Devon Distributing purchased smart watches for all their long haul drivers. The devices
were monitored from the headquarters so the location of the driver was always known to
Devon management. The watches could also send text messages and accept phone
