AINS 103: CHAPTER 1 EXAM 2024/2025
A Commercial Property Loss Exposure is: - Precise Answer ✔✔Is any
condition that presents the possibility that an organization will sustain a
loss resulting from damage or theft of its property.
Real Property (Realty): - Precise Answer ✔✔Tangible property
consisting of land, all structures permanently attached to the land,
(including fixtures permanently attached) and whatever is growing on
the land.
Personal Property: - Precise Answer ✔✔Includes moveable items
owned by a business, such as supplies, furniture, computers, machinery,
tools, and some vehicles, (forklifts.)
Categories of Commercial Property: - Precise Answer ✔✔Buildings,
personal property contained in buildings, money and securities, vehicles
and watercraft, property in the possession of others, property in transit,
floating property.
Significant perils which can result in catastrophic loss: - Precise Answer
✔✔Fire, Theft, Windstorm, Flood, Earthquake, Terrorism, Vandalism,
and War.
For most businesses, what type of peril poses the greatest risk of a large
or total property loss? - Precise Answer ✔✔Fire.
,Almost all businesses face commercial property loss exposures because
they own or have a legal interest in what 2 kinds of property? - Precise
Answer ✔✔Real property, and personal property.
Joanne owns a construction business. What kind of property are the
company forklifts considered? - Precise Answer ✔✔Personal property.
Financial consequences of loss; Reduced Value: - Precise Answer
✔✔When a loss occurs, the property's value can be reduced or
eliminated.
Financial consequences of loss; Lost Income: - Precise Answer ✔✔A
business may not be able to use the property in question until it has been
repaired, restored or replaced.
Financial consequences of loss; Extra Expenses: - Precise Answer
✔✔Businesses sometimes have to pay additional costs to keep operating
after a loss.
Key parts of calculating a business income loss are: - Precise Answer
✔✔Determining the lost revenue and any continuing and extra expenses
the business incurred during the period of interruption.
Continuing Expenses: - Precise Answer ✔✔Expenses that continue to be
incurred during a business interruption, such as payroll of key
employees, debt repayments, taxes, and insurance premiums.
, Extra Expenses: - Precise Answer ✔✔Expenses that are paid in addition
to continuing expenses for the purpose of mitigating the effects of a
business interruption, such as relocation, utilities, payroll, and
equipment.
T/F: The causes of business income losses associated with property
exposures are typically the same as those for physical damage losses. -
Precise Answer ✔✔True.
When property that a business uses to generate income becomes
damaged or stolen, what kind of loss is typically suffered? - Precise
Answer ✔✔Business income loss.
What kinds of expenses constitute continuing expenses? - Precise
Answer ✔✔Payroll of key employees, debt repayments, property and
payroll taxes, rent or lease payments, and insurance premiums.
What are the key parts of calculating a business income loss? - Precise
Answer ✔✔Determining the loss revenue and any continuing and extra
expenses the business incurred during the period of interruption.
What kinds of expenses constitute extra expenses? - Precise Answer
✔✔Relocation, utilities, payroll, equipment.
A Commercial Property Loss Exposure is: - Precise Answer ✔✔Is any
condition that presents the possibility that an organization will sustain a
loss resulting from damage or theft of its property.
Real Property (Realty): - Precise Answer ✔✔Tangible property
consisting of land, all structures permanently attached to the land,
(including fixtures permanently attached) and whatever is growing on
the land.
Personal Property: - Precise Answer ✔✔Includes moveable items
owned by a business, such as supplies, furniture, computers, machinery,
tools, and some vehicles, (forklifts.)
Categories of Commercial Property: - Precise Answer ✔✔Buildings,
personal property contained in buildings, money and securities, vehicles
and watercraft, property in the possession of others, property in transit,
floating property.
Significant perils which can result in catastrophic loss: - Precise Answer
✔✔Fire, Theft, Windstorm, Flood, Earthquake, Terrorism, Vandalism,
and War.
For most businesses, what type of peril poses the greatest risk of a large
or total property loss? - Precise Answer ✔✔Fire.
,Almost all businesses face commercial property loss exposures because
they own or have a legal interest in what 2 kinds of property? - Precise
Answer ✔✔Real property, and personal property.
Joanne owns a construction business. What kind of property are the
company forklifts considered? - Precise Answer ✔✔Personal property.
Financial consequences of loss; Reduced Value: - Precise Answer
✔✔When a loss occurs, the property's value can be reduced or
eliminated.
Financial consequences of loss; Lost Income: - Precise Answer ✔✔A
business may not be able to use the property in question until it has been
repaired, restored or replaced.
Financial consequences of loss; Extra Expenses: - Precise Answer
✔✔Businesses sometimes have to pay additional costs to keep operating
after a loss.
Key parts of calculating a business income loss are: - Precise Answer
✔✔Determining the lost revenue and any continuing and extra expenses
the business incurred during the period of interruption.
Continuing Expenses: - Precise Answer ✔✔Expenses that continue to be
incurred during a business interruption, such as payroll of key
employees, debt repayments, taxes, and insurance premiums.
, Extra Expenses: - Precise Answer ✔✔Expenses that are paid in addition
to continuing expenses for the purpose of mitigating the effects of a
business interruption, such as relocation, utilities, payroll, and
equipment.
T/F: The causes of business income losses associated with property
exposures are typically the same as those for physical damage losses. -
Precise Answer ✔✔True.
When property that a business uses to generate income becomes
damaged or stolen, what kind of loss is typically suffered? - Precise
Answer ✔✔Business income loss.
What kinds of expenses constitute continuing expenses? - Precise
Answer ✔✔Payroll of key employees, debt repayments, property and
payroll taxes, rent or lease payments, and insurance premiums.
What are the key parts of calculating a business income loss? - Precise
Answer ✔✔Determining the loss revenue and any continuing and extra
expenses the business incurred during the period of interruption.
What kinds of expenses constitute extra expenses? - Precise Answer
✔✔Relocation, utilities, payroll, equipment.
