AINS103 PRACTICE LATEST
QUESTIONS, AINS 103
EXAM
Worldwide Warehousing has a Building and Personal Property
Coverage Form (BPP) with a $1,000,000 limit on a building and a
$5,000 deductible. The warehouse suffers a $1,010,000 fire loss. Which
one of the following amounts will Worldwide's insurer pay?
Select one:
A. $ 995,000
B. $1,000,000
C. $1,005,000
D. $1,010,000 - ANSWERS-B. $1,000,000
Billy owns a baseball souvenir store in Cooperstown, NY. He insured
his store under a Building and Personal Property Coverage Form (BPP)
with a $275,000 limit and a $1,500 deductible. A large fire in the store
caused significant damage amounting to $310,000 in covered damages.
How much would Billy's insurer pay under his BPP?
Select one:
A. $273,500
B. $275,000
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PAGE
1
, AINS103 PRACTICE LATEST
QUESTIONS, AINS 103
EXAM
C. $308,500
D. $310,000 - ANSWERS-B. $275,000
Which one of the following statements is correct with respect to the
Building and Personal Property Coverage Form (BPP)?
Select one:
A. The deductible is subtracted from the policy limit.
B. The policy limit is the maximum the insurer will pay over any one
year.
C. No payments under coverage extensions are made if the limit of
insurance in the declarations is paid in full.
D. Due to coverage extensions, it is possible for the total payment for
one loss to exceed the policy limit. - ANSWERS-D. Due to coverage
extensions, it is possible for the total payment for one loss to exceed the
policy limit.
Karma Tea Shop (KTS) has three locations in Boston. The business is
insured by a commercial package policy with the Business Income (and
Extra Expense) Coverage Form (BIC). The BIC has a $300,000 limit of
insurance which applies to all three locations and a 70 percent
END OF
PAGE
2
, AINS103 PRACTICE LATEST
QUESTIONS, AINS 103
EXAM
coinsurance provision. The business income insurance for KTS is
written on a
Select one:
A. Specific basis.
B. Net basis.
C. Fixed basis.
D. Blanket basis. - ANSWERS-D. Blanket basis.
Stanton Industries insures its building and business personal property
under the commercial property coverage part of a commercial package
policy. Anthony is the new risk manager for Stanton Industries. He
wants to look at the policy to review the property insured, the kinds and
amounts of coverage provided, and any optional coverages. Which one
of the following component parts of the commercial property part would
provide Anthony with this information?
Select one:
A. Commercial property conditions
B. Commercial property declarations
C. Coverage form
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PAGE
3
, AINS103 PRACTICE LATEST
QUESTIONS, AINS 103
EXAM
D. Causes of loss form - ANSWERS-B. Commercial property
declarations
Which one of the following statements is correct with respect to the
Building and Personal Property Coverage Form (BPP) deductible?
Select one:
A. Under the ISO Commercial Lines Manual rules, the standard
deductible must be at least $2,500.
B. The insurer is not obligated to pay anything to the insured unless the
loss exceeds the deductible.
C. If the Coinsurance condition or the Agreed Value optional coverage
applies, the amount of the loss is first reduced by the deductible before
applying any penalty imposed by those provisions.
D. If an occurrence involves a loss that affects more than one category
of covered property and a separate limit of insurance applies to each
category, losses to all categories are totaled and the deductible applied to
that total amount. - ANSWERS-B. The insurer is not obligated to pay
anything to the insured unless the loss exceeds the deductible.
END OF
PAGE
4
QUESTIONS, AINS 103
EXAM
Worldwide Warehousing has a Building and Personal Property
Coverage Form (BPP) with a $1,000,000 limit on a building and a
$5,000 deductible. The warehouse suffers a $1,010,000 fire loss. Which
one of the following amounts will Worldwide's insurer pay?
Select one:
A. $ 995,000
B. $1,000,000
C. $1,005,000
D. $1,010,000 - ANSWERS-B. $1,000,000
Billy owns a baseball souvenir store in Cooperstown, NY. He insured
his store under a Building and Personal Property Coverage Form (BPP)
with a $275,000 limit and a $1,500 deductible. A large fire in the store
caused significant damage amounting to $310,000 in covered damages.
How much would Billy's insurer pay under his BPP?
Select one:
A. $273,500
B. $275,000
END OF
PAGE
1
, AINS103 PRACTICE LATEST
QUESTIONS, AINS 103
EXAM
C. $308,500
D. $310,000 - ANSWERS-B. $275,000
Which one of the following statements is correct with respect to the
Building and Personal Property Coverage Form (BPP)?
Select one:
A. The deductible is subtracted from the policy limit.
B. The policy limit is the maximum the insurer will pay over any one
year.
C. No payments under coverage extensions are made if the limit of
insurance in the declarations is paid in full.
D. Due to coverage extensions, it is possible for the total payment for
one loss to exceed the policy limit. - ANSWERS-D. Due to coverage
extensions, it is possible for the total payment for one loss to exceed the
policy limit.
Karma Tea Shop (KTS) has three locations in Boston. The business is
insured by a commercial package policy with the Business Income (and
Extra Expense) Coverage Form (BIC). The BIC has a $300,000 limit of
insurance which applies to all three locations and a 70 percent
END OF
PAGE
2
, AINS103 PRACTICE LATEST
QUESTIONS, AINS 103
EXAM
coinsurance provision. The business income insurance for KTS is
written on a
Select one:
A. Specific basis.
B. Net basis.
C. Fixed basis.
D. Blanket basis. - ANSWERS-D. Blanket basis.
Stanton Industries insures its building and business personal property
under the commercial property coverage part of a commercial package
policy. Anthony is the new risk manager for Stanton Industries. He
wants to look at the policy to review the property insured, the kinds and
amounts of coverage provided, and any optional coverages. Which one
of the following component parts of the commercial property part would
provide Anthony with this information?
Select one:
A. Commercial property conditions
B. Commercial property declarations
C. Coverage form
END OF
PAGE
3
, AINS103 PRACTICE LATEST
QUESTIONS, AINS 103
EXAM
D. Causes of loss form - ANSWERS-B. Commercial property
declarations
Which one of the following statements is correct with respect to the
Building and Personal Property Coverage Form (BPP) deductible?
Select one:
A. Under the ISO Commercial Lines Manual rules, the standard
deductible must be at least $2,500.
B. The insurer is not obligated to pay anything to the insured unless the
loss exceeds the deductible.
C. If the Coinsurance condition or the Agreed Value optional coverage
applies, the amount of the loss is first reduced by the deductible before
applying any penalty imposed by those provisions.
D. If an occurrence involves a loss that affects more than one category
of covered property and a separate limit of insurance applies to each
category, losses to all categories are totaled and the deductible applied to
that total amount. - ANSWERS-B. The insurer is not obligated to pay
anything to the insured unless the loss exceeds the deductible.
END OF
PAGE
4
