1|Page
AINS103 Practice Questions, AINS 103
|Actual Exam With Answers
Considering the claims process, which one of the following data analysis methods
begins with data analysis of claims activity logs to identify steps taken for claims
and the timing of them? - correct -answer-Process mining.
Entities eligible for financial institution bonds are - correct -answer-Not eligible for
the ISO Commercial Crime Program.
Smith Stores had net income of $5,000 per month in the 12 months before a
covered business income loss. The store is unable to reopen for three months.
During that time, continuing expenses totaled $6,000. What is the amount of
Smith Stores' business income loss? - correct -answer-$21,000 (the business was
interrupted for 3 months, for a business income loss of $15,000, plus continuing
expenses of $6,000, equals $21,000)
Which one of the following policies would respond to a furnace explosion? -
correct -answer-Commercial property policy.
,2|Page
The claims manager for Providence Mall knows the longer liability claims are
open, the higher the demand and claim cost. The manager wants to use data
analytics to predict the final settlement amount of bodily injury claims that are
open over two years. The manager would also like to examine how much the
amount varies based on the different areas in the mall and which stores have
claims from injury occurring within the store. Which one of the following methods
would help predict the cost of the claims with those attributes? - correct -answer-
Cluster analysis.
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 directors injuries sustained because they
happened during an athletic event.
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-Jillian's Amusement Park.
,3|Page
Once a risk manager has started the risk management process and has completed
a scan of the environment, which one of the following is the next step in the
enterprise risk management (ERM) process? - correct -answer-Identify risks.
The Random Bookstore (Random) is covered by an unendorsed Commercial
General Liability (CGL) Coverage Form. A customer in the store tripped over her
untied shoelace and fell, breaking her right arm. Which one of the following is a
reason Random's insurer might refuse to pay any damages under Random's CGL
policy? - correct -answer-The insured must be legally obligated before the insurer
has the duty of paying.
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.
Which one of the following exposures would be best suited for businessowners
policy (BOP)? - correct -answer-An insured is considering upgrades to the
furniture in the lobby of his business and making computers with wi-fi available to
customers while they wait.
During a business interruption, some of the organization's expenses, called
continuing expenses, will continue, and other expenses, called noncontinuing
expenses, will not continue. Which one of the following is an example of a
continuing expense? - correct -answer-Insurance premiums.
, 4|Page
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.
Under the Commercial General Liability (CGL) Coverage Form, medical payments
coverage applies to which one of the following situations? - correct -answer-Sara
is a volunteer helping the named insured clean up their grounds.
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 calls, so there was constant communication. This allowed
Devon management to respond immediately in the event of an emergency or
failure of a vehicle. This network is an example of: - correct -answer-The Internet
of Things.
There can be adverse financial consequences following the loss of or damage to
property including a reduction in property value. Which one of the following
statements is correct with respect to a reduction in value? - correct -answer-A
rare glass structure that is repaired after being damaged is likely to have declined
in value.
AINS103 Practice Questions, AINS 103
|Actual Exam With Answers
Considering the claims process, which one of the following data analysis methods
begins with data analysis of claims activity logs to identify steps taken for claims
and the timing of them? - correct -answer-Process mining.
Entities eligible for financial institution bonds are - correct -answer-Not eligible for
the ISO Commercial Crime Program.
Smith Stores had net income of $5,000 per month in the 12 months before a
covered business income loss. The store is unable to reopen for three months.
During that time, continuing expenses totaled $6,000. What is the amount of
Smith Stores' business income loss? - correct -answer-$21,000 (the business was
interrupted for 3 months, for a business income loss of $15,000, plus continuing
expenses of $6,000, equals $21,000)
Which one of the following policies would respond to a furnace explosion? -
correct -answer-Commercial property policy.
,2|Page
The claims manager for Providence Mall knows the longer liability claims are
open, the higher the demand and claim cost. The manager wants to use data
analytics to predict the final settlement amount of bodily injury claims that are
open over two years. The manager would also like to examine how much the
amount varies based on the different areas in the mall and which stores have
claims from injury occurring within the store. Which one of the following methods
would help predict the cost of the claims with those attributes? - correct -answer-
Cluster analysis.
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 directors injuries sustained because they
happened during an athletic event.
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-Jillian's Amusement Park.
,3|Page
Once a risk manager has started the risk management process and has completed
a scan of the environment, which one of the following is the next step in the
enterprise risk management (ERM) process? - correct -answer-Identify risks.
The Random Bookstore (Random) is covered by an unendorsed Commercial
General Liability (CGL) Coverage Form. A customer in the store tripped over her
untied shoelace and fell, breaking her right arm. Which one of the following is a
reason Random's insurer might refuse to pay any damages under Random's CGL
policy? - correct -answer-The insured must be legally obligated before the insurer
has the duty of paying.
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.
Which one of the following exposures would be best suited for businessowners
policy (BOP)? - correct -answer-An insured is considering upgrades to the
furniture in the lobby of his business and making computers with wi-fi available to
customers while they wait.
During a business interruption, some of the organization's expenses, called
continuing expenses, will continue, and other expenses, called noncontinuing
expenses, will not continue. Which one of the following is an example of a
continuing expense? - correct -answer-Insurance premiums.
, 4|Page
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.
Under the Commercial General Liability (CGL) Coverage Form, medical payments
coverage applies to which one of the following situations? - correct -answer-Sara
is a volunteer helping the named insured clean up their grounds.
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 calls, so there was constant communication. This allowed
Devon management to respond immediately in the event of an emergency or
failure of a vehicle. This network is an example of: - correct -answer-The Internet
of Things.
There can be adverse financial consequences following the loss of or damage to
property including a reduction in property value. Which one of the following
statements is correct with respect to a reduction in value? - correct -answer-A
rare glass structure that is repaired after being damaged is likely to have declined
in value.
