AINS 103 (Associate In General Insurance) Exam
AINS 103 (ASSOCIATE IN GENERAL INSURANCE) EXAM FOCUSES
ON THE BUSINESS OF INSURANCE AND INCLUDES ACCURATE
AND VERIFIED QUESTIONS COVERING INSURANCE OPERATIONS,
RISK MANAGEMENT, UNDERWRITING, CLAIMS, MARKETING,
REGULATION, AND REINSURANCE
In business income insurance, the expenses that an organization would not have incurred if the
business interruption had not occurred are called
Select one:
A. Continuing expenses.
B. Contingent expenses.
C. Excludable expenses.
D. Extra expenses. - ANSWER-D. Extra expenses.
A vehicle owner had a tire store install four new wheels and tires on the vehicle. On the way
home from the store, one of the wheels came off, causing the vehicle to accidentally run off the
road and strike a tree. The vehicle owner sued the tire store for failing to properly tighten the
lug nuts on the vehicle. The loss exposure faced by the tire store in this case is known as
Select one:
A. Employers liability.
B. Completed operations liability.
C. Automobile liability.
D. Products liability. - ANSWER-B. Completed operations liability.
Which one of the following loss exposures exist when a business can be held legally liable for
bodily injury or property damage caused by their repair or contracting work?
Select one:
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, AINS 103 (Associate In General Insurance) Exam
A. Operations liability
B. Completed operations liability
C. Workers' compensation liability
D. Products liability - ANSWER-B. Completed operations liability
Inland marine insurance is insurance that covers
Select one:
A. Businesses that own or operate watercraft, or import or export goods.
B. Many different classes of property that typically involve an element of transportation on land.
C. Companies that ship goods by commercial vessel on inland waterways.
D. Miscellaneous lines such as burglary, glass, and steam boilers. - ANSWER-B. Many different
classes of property that typically involve an element of transportation on land.
Sue is injured at work, and her job responsibilities are reduced for 30 days, after which time she
is fully recovered. Sue has which one of the following types of workers compensation
disabilities?
Select one:
A. Temporary total disability
B. Permanent partial disability
C. Temporary partial disability
D. Permanent total disability - ANSWER-C. Temporary partial disability
Meat Products Company (MPC) runs packing plants in three Midwest states. The company was
in the news recently because of its labor practices. The Department of Labor (DOL) investigated
complaints from five female employees that MPC discriminated against them. The DOL found
the claim was true. The Immigration and Naturalization Service (INS) found that the company
employed illegal immigrants and paid them less than the minimum wage. When this news
became public, MPC's reputation was severely harmed. This scenario illustrates which source of
reputation risk?
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, AINS 103 (Associate In General Insurance) Exam
Select one:
A. Corporate governance and leadership
B. Corporate social responsibility
C. Regulatory and legal compliance
D. Communication and crisis management - ANSWER-C. Regulatory and legal compliance
The two categories of property that are exposed to loss from cyber risk are
Select one:
A. Insured and uninsured.
B. Covered and not covered.
C. Tangible and intangible.
D. Real and personal. - ANSWER-C. Tangible and intangible.
Perils are an important aspect of property insurance. Which one of the following statements is
correct with respect to perils?
Select one:
A. A peril is the actual means by which property is damaged or destroyed such as fire, lightning,
windstorm, hail, or theft.
B. In order to be covered by an insurance policy, a peril must be defined and described in that
policy.
C. Property insurance policies can cover specific perils and cannot exclude other perils.
D. A peril is anything that increases the frequency or the severity of a loss. - ANSWER-A. A peril
is the actual means by which property is damaged or destroyed such as fire, lightning,
windstorm, hail, or theft.
A contractor is hired to install a new concrete sidewalk in front of a store. Several weeks after
the sidewalk was installed, the concrete buckles and a passerby trips and falls on the buckled
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, AINS 103 (Associate In General Insurance) Exam
sidewalk. The passerby sues the contractor to recover medical expenses incurred due to the fall.
This commercial liability loss is categorized as
Select one:
A. Products liability.
B. Environmental liability.
C. Professional liability.
D. Completed operations liability. - ANSWER-D. Completed operations liability.
Which one of the following best describes real property?
Select one:
A. Property being shipped to or from others.
B. Business personal property that includes furniture, machinery and equipment, and
stock/inventory.
C. Tangible property that includes land, structures permanently attached to the land, and
whatever is growing on the land.
D. Vehicles, merchandise, furniture, tools, and similar items. - ANSWER-C. Tangible property
that includes land, structures permanently attached to the land, and whatever is growing on the
land.
Extra expenses are expenses, in addition to ordinary expenses, that an organization incurs to
mitigate the effects of a business interruption. Which one of the following is an example of an
extra expense?
Select one:
A. Cost to rent temporary office space
B. Insurance premiums
C. Debt repayments
D. Payroll of key employees - ANSWER-A. Cost to rent temporary office space
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AINS 103 (ASSOCIATE IN GENERAL INSURANCE) EXAM FOCUSES
ON THE BUSINESS OF INSURANCE AND INCLUDES ACCURATE
AND VERIFIED QUESTIONS COVERING INSURANCE OPERATIONS,
RISK MANAGEMENT, UNDERWRITING, CLAIMS, MARKETING,
REGULATION, AND REINSURANCE
In business income insurance, the expenses that an organization would not have incurred if the
business interruption had not occurred are called
Select one:
A. Continuing expenses.
B. Contingent expenses.
C. Excludable expenses.
D. Extra expenses. - ANSWER-D. Extra expenses.
A vehicle owner had a tire store install four new wheels and tires on the vehicle. On the way
home from the store, one of the wheels came off, causing the vehicle to accidentally run off the
road and strike a tree. The vehicle owner sued the tire store for failing to properly tighten the
lug nuts on the vehicle. The loss exposure faced by the tire store in this case is known as
Select one:
A. Employers liability.
B. Completed operations liability.
C. Automobile liability.
D. Products liability. - ANSWER-B. Completed operations liability.
Which one of the following loss exposures exist when a business can be held legally liable for
bodily injury or property damage caused by their repair or contracting work?
Select one:
1|Page
, AINS 103 (Associate In General Insurance) Exam
A. Operations liability
B. Completed operations liability
C. Workers' compensation liability
D. Products liability - ANSWER-B. Completed operations liability
Inland marine insurance is insurance that covers
Select one:
A. Businesses that own or operate watercraft, or import or export goods.
B. Many different classes of property that typically involve an element of transportation on land.
C. Companies that ship goods by commercial vessel on inland waterways.
D. Miscellaneous lines such as burglary, glass, and steam boilers. - ANSWER-B. Many different
classes of property that typically involve an element of transportation on land.
Sue is injured at work, and her job responsibilities are reduced for 30 days, after which time she
is fully recovered. Sue has which one of the following types of workers compensation
disabilities?
Select one:
A. Temporary total disability
B. Permanent partial disability
C. Temporary partial disability
D. Permanent total disability - ANSWER-C. Temporary partial disability
Meat Products Company (MPC) runs packing plants in three Midwest states. The company was
in the news recently because of its labor practices. The Department of Labor (DOL) investigated
complaints from five female employees that MPC discriminated against them. The DOL found
the claim was true. The Immigration and Naturalization Service (INS) found that the company
employed illegal immigrants and paid them less than the minimum wage. When this news
became public, MPC's reputation was severely harmed. This scenario illustrates which source of
reputation risk?
2|Page
, AINS 103 (Associate In General Insurance) Exam
Select one:
A. Corporate governance and leadership
B. Corporate social responsibility
C. Regulatory and legal compliance
D. Communication and crisis management - ANSWER-C. Regulatory and legal compliance
The two categories of property that are exposed to loss from cyber risk are
Select one:
A. Insured and uninsured.
B. Covered and not covered.
C. Tangible and intangible.
D. Real and personal. - ANSWER-C. Tangible and intangible.
Perils are an important aspect of property insurance. Which one of the following statements is
correct with respect to perils?
Select one:
A. A peril is the actual means by which property is damaged or destroyed such as fire, lightning,
windstorm, hail, or theft.
B. In order to be covered by an insurance policy, a peril must be defined and described in that
policy.
C. Property insurance policies can cover specific perils and cannot exclude other perils.
D. A peril is anything that increases the frequency or the severity of a loss. - ANSWER-A. A peril
is the actual means by which property is damaged or destroyed such as fire, lightning,
windstorm, hail, or theft.
A contractor is hired to install a new concrete sidewalk in front of a store. Several weeks after
the sidewalk was installed, the concrete buckles and a passerby trips and falls on the buckled
3|Page
, AINS 103 (Associate In General Insurance) Exam
sidewalk. The passerby sues the contractor to recover medical expenses incurred due to the fall.
This commercial liability loss is categorized as
Select one:
A. Products liability.
B. Environmental liability.
C. Professional liability.
D. Completed operations liability. - ANSWER-D. Completed operations liability.
Which one of the following best describes real property?
Select one:
A. Property being shipped to or from others.
B. Business personal property that includes furniture, machinery and equipment, and
stock/inventory.
C. Tangible property that includes land, structures permanently attached to the land, and
whatever is growing on the land.
D. Vehicles, merchandise, furniture, tools, and similar items. - ANSWER-C. Tangible property
that includes land, structures permanently attached to the land, and whatever is growing on the
land.
Extra expenses are expenses, in addition to ordinary expenses, that an organization incurs to
mitigate the effects of a business interruption. Which one of the following is an example of an
extra expense?
Select one:
A. Cost to rent temporary office space
B. Insurance premiums
C. Debt repayments
D. Payroll of key employees - ANSWER-A. Cost to rent temporary office space
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