AINS 103 All Practice Questions from the Course

AINS 103 All Practice Questions from the Course Latest Update -m 300 Questions and 100% Verified Correct Answers Verified by Professor

A building contractor uses lower grade materials than called for in the specifications for an office building. A year after the building was completed, a balcony collapses, injuring several employees and customers and causing damage to the building and contents.For the building construction company, this is an example of

Select one:

• A completed operations liability exposure.
• An operations liability exposure.
• A premises liability exposure.

D. A products liability exposure. - CORRECT ANSWER: A. A completed operations

liability exposure.

A carrier that is prevented by an accident from delivering the cargo aboard its ship may face an exposure called loss of freight, which is

Select one:

• The compensation the carrier receives for transporting cargo.
• A penalty the carrier pays the shipper for nondelivery.
• The liability for loss or damage to the cargo entrusted to it.

D. The cost of disposing of undeliverable goods. - CORRECT ANSWER: A. The

compensation the carrier receives for transporting cargo.

A commercial building may contain furniture, machinery and equipment and finished products. Which one of the following is the term generally used in property insurance policies to refer to all these types of property?

Select one:

• Business personal property 1 / 4

• Stock
• Inventory

D. Commercial property - CORRECT ANSWER: A. Business personal property

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 sidewalk. The passerby sues the contractor to recover medical expenses incurred due to the fall. This commercial liability loss is categorized as

Select one:

• Products liability.
• Environmental liability.
• Professional liability.

D. Completed operations liability. - CORRECT ANSWER: D. Completed operations

liability.

A customer filed a suit against Patsy's Market, claiming that she was injured when she slipped and fell in the produce section. The customer claimed that she broke her elbow, had to have surgery, and missed a week of work. The owner of Patsy's Market told its commercial general liability (CGL) insurer that the produce area was always clean and that the claim was suspicious. After reviewing the medical bills and video footage from the market, the insurer concluded that Patsy's Market was probably liable for the customer's injury. The CGL insurer will most likely attempt to do which one of the following?

Select one:

• Defend Patsy's Market in court
• Refuse to defend Patsy's Market based on an exclusion
• Negotiate an out of court settlement

D. Deny the claim based on the owner's suspicion - CORRECT ANSWER: C. Negotiate

an out of court settlement

A customer shopping at Clark's Food Market dropped a bottle of wine at the checkout counter. The bottle broke and cut the customer's leg. The customer required some minor medical attention and a few stitches. Which one of the following coverages under 2 / 4

Clark's Commercial General Liability (CGL) coverage form would pay for the customer's expenses?

Select one:

• Personal and advertising injury liability coverage
• Liquor liability coverage
• Premises and operations liability coverage

D. Medical payments coverage - CORRECT ANSWER: D. Medical payments coverage

A family recently purchased a new home constructed by a residential home builder. Two months after taking possession, several of the family members were injured when the roof suddenly collapsed. The family sued the construction company and was awarded monetary damages for their injuries. This is an example of which one of the following types of commercial liability loss exposure for the construction company?

Select one:

• Products liability
• Premises and operations liability
• Completed operations liability

D. Employers liability - CORRECT ANSWER: C. Completed operations liability

A motor truck cargo liability policy

Select one:

• Covers a trucking company's liability for damage to goods of others while being

transported by the trucker.

• Covers property in the care, custody or control of a governmental agency.
• Provides broad coverage for parcel post shipments throughout the United States,

Canada, and Mexico.

• Covers cargo either on an inland marine policy or an ocean marine policy. -

CORRECT ANSWER: A. Covers a trucking company's liability for damage to goods of

others while being transported by the trucker.

A not-for-profit public interest group posted a newspaper editorial on its electronic chatroom that falsely accused a local politician of criminal activity. The public interest 3 / 4

group is insured under an unendorsed Commercial General Liability (CGL) policy. The politician who was falsely accused filed suit against the public interest group for libel.Which one of these statements best describes the probable response the public interest group will receive from its insurer after the insurer reviews these facts?

Select one:

• The claim will be covered because the territory of Coverage B of the CGL policy is

worldwide for personal and advertising injury offenses that take place through the Internet.

• The claim will be denied because Coverage B of the CGL policy excludes criminal

acts arising out of a criminal act committed by or at the direction of the insured.

C. The claim will be denied because Coverage B of the CGL - CORRECT ANSWER: C.

The claim will be denied because Coverage B of the CGL policy excludes any injury arising out of an electronic chatroom or electronic bulletin board.

A policy that covers damage to customer's goods while in the possession of the insured, regardless of liability is

Select one:

• An installation policy.
• A bailee liability policy
• A bailees' customers policy.

D. A dealer's policy. - CORRECT ANSWER: C. A bailees' customers policy.

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:

• Employers liability.
• Completed operations liability.
• Automobile liability.

D. Products liability. - CORRECT ANSWER: B. Completed operations liability.

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