AINS 103 Study Guide (Latest 2023/ 2024 Update) Exploring Commercial Insurance | Complete with Questions and Verified Answers| 100% Correct| Grade A

AINS 103 Study Guide (Latest 2023/ 2024
Update) Exploring Commercial Insurance |
Complete with Questions and Verified
Answers| 100% Correct| Grade A
Q: Marine insurance includes both ocean and inland marine coverage in the U.S. only
Answer:
TRUE
Q: Disease thought to be caused by work or the work environment.
Answer:
Occupational disease
Q: A description of the property insured would be located on the of a CPP
Answer:
Declarations page
Q: Three types of causes of loss forms in a commercial property policy: , __,

Answer:
basic, broad, special
Q: The _ and BPP forms are nearly identical, using the _ __ approach

Answer:
basic and broad, use ‘named perils’ approach
Q: In addition to what is covered on the basic form, the broad form covers:
–_ __

• weight of , or __
• _ damage Answer: Falling objects Weight of ice, snow, sleet Water damage Q: Fire, Lightning, Explosion, windstorm, hail, smoke, sprinkler damage are all covered on the: A. Broad Form Only B. Basic Form Only C. Both Answer: C. Both Q: The special BPP form insurances on an perils basis
  Answer:
  open, anything that isn’t specifically excluded
  Q: The amount an insurer is obligated to pay for a loss covered by the BPP is determined by the
  of and the __
  Answer:
  Limits of insurance and the deductible

Q: BPP Limits of Insurance can either be _ or
Answer:
specific or blanket
Q: Removing the debris after a fire, recovering data from damaged servers would be things
covered in a BPP’s and
Answer:
Additional coverages and extensions
Q: Although subject to special limits, the amounts payable under coverage extensions are in
_ to the _ of insurance stated in the declarations
Answer:
in addition; overall limits
Q: TRUE/FALSE: Business income insurance policies with and without additional coverage
for extra expenses use the same insuring agreement
Answer:
TRUE
Q: TRUE/FALSE: The Business Income With Extra Expense Coverage form covers extra
expenses, but only if they reduce (i.e. mitigate the effects of) the business income loss
Answer:
FALSE – expenses like cleaning and restocking do not reduce the business income loss (i.e. are
not critical to normal business operations like rent, utilities, payroll) but are still covered

Q: TRUE/FALSE: The Business Income and Extra Expense Coverage form covers extra
expenses, even if they do not reduce the business income loss
Answer:
TRUE
Q: The limit of insurance stated in the BIC declarations is the amount the insurer will
pay for loss in any occurrence Answer: Maximum amount for any one occurrence Q: If BIC is written on a specific basis, a limit is set for _ insured
Answer:
each building
Q: If BIC is written on a blanket basis, a limit applies to _ at one location (or
_ at multiple locations) Answer: all buildings at one location, or all buildings at multiple locations Q: In a BIC policy, the amount of insurance required = _ _ x _
Answer:
coinsurance % x coinsurance basis
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