AIC 30 4-6 Practice Questions with Correct Answers
Question 1:
Tammy Smith was analyzing claim data in order to reassess the territorial boundaries and the
relation to fire stations in the state of Ohio. Tammy found that the previous territories were
inappropriately grouped and that new segments were warranted. Which one of the following
best identifies the stakeholder position that Tammy has?
Answer:
Statistical Agent
Question 2:
Hannah's attorney will allow only a written statement to be taken by the claims representative.
Which one of the following correctly describes how this can benefit both Hannah and the claim
representative?
Answer:
The claim representative will have time to think and reflect on follow up questions. Hannah will
be guided by her attorney.
Question 3:
There are three qualities that show recorded statements to be effective. One of these qualities
is Coherence. Which one of the following best identifies another quality for an effective
recorded statement?
Answer:
Completeness
Question 4:
A measure of losses and loss adjustment expenses against earned premiums which reflects the
percentage of premiums being consumed by losses is identified as which one of the following?
Loss ratio
Which one of the following is reported to the federal government as required by the U. S. Office
of Foreign Assets Control (OFAC)?
Answer:
Certain claim payments
,Question 5:
Which one of the following sworn statements has little cost associated with them, and provide
a valuable method of obtaining and preserving information about the facts of a loss?
Recorded statements
Loss event videos are usually not edited because
Answer:
Editing would detract from the video's credibility.
Question 6:
Many state governments and the federal government require reporting of suspected fraudulent
claims by insurers and special investigation units (SIU's). State and federal governments use
insurance fraud statistics to develop
Answer:
Prevention services.
Question 7:
Ron was the adjuster for ABC Insurance and was handling an automobile claim with a
subrogation interest. After the accident, a vehicle inspection determined that the steering
system had failed which caused the insured to strike a building. Ron adjusted the claim for the
physical damage to the automobile and the building and concluded the salvage disposal. Upon
presenting the subrogation claim to the automobile manufacturer they demanded to inspect
the vehicle. Ron's disposal of the automobile salvage prior to concluding the subrogation claims
is best identified as which one of the following?
Answer:
Spoliation of evidence
Question 8:
Photographs, maps, diagrams, and video are useful means to document evidence for a claim.
These items are most appropriately referred to as which one of the following?
Representational documents
Ron was the adjuster for ABC Insurance and was handling an automobile claim with a
subrogation interest. After the accident, a vehicle inspection determined that the steering
system had failed which caused the insured to strike a building. Ron adjusted the claim for the
physical damage to the automobile and the building and concluded the salvage disposal. Upon
presenting the subrogation claim to the automobile manufacturer they demanded to inspect
the vehicle. Which one of the following actions would best protect Ron from a claim of
spoliation from the automobile manufacturer?
Answer:
Preserve the parts in question
, Question 9:
Which one of the following types of sworn statements provides the insurer with an opportunity
to assess how the insured will perform as a witness during the litigation process?
Examination under oath (EUO)
Mike reported a claim for property damage to his home. The damage involved a collapse of
part of the structure and appeared to be related to the grading around the home as well as the
land near to the lot that Mike's home was on. In order to appropriately document the cause of
the damage, which one of the following would be the best selection?
Answer:
Maps
Question 10:
A map can be used to show the location of places that are relevant to the case. Maps should be
prepared by professionally trained
Answer:
Engineers
Question 11:
What should be noted on a diagram of an accident scene?
Answer:
Location
Question 12:
A stakeholder which supplies information required to calculate insurance rates, develop rating
plans, and estimate loss reserves is best identified as which one of the following?
Actuary
Sally was adjusting losses for Reliable Insurance and handled a fire loss for a home where a
small fire occurred near the coffee pot and caused heavy smoke damage throughout the
kitchen and burns to the cabinetry. The cause of the loss was not clear at the time, but a recall
on the coffee pot for a faulty heating element that could overheat and cause a fire was received
two months after the claim was settled.Sally copied the claim file and submitted a subrogation
claim because the damages appeared to be caused by the coffee pot appliance. The
manufacturer attempted to reject the claim based on spoliation of evidence. Which one of the
following would be the best defense in this claim for subrogation?
Answer:
Litigation was not contemplated when the evidence was destroyed
Question 1:
Tammy Smith was analyzing claim data in order to reassess the territorial boundaries and the
relation to fire stations in the state of Ohio. Tammy found that the previous territories were
inappropriately grouped and that new segments were warranted. Which one of the following
best identifies the stakeholder position that Tammy has?
Answer:
Statistical Agent
Question 2:
Hannah's attorney will allow only a written statement to be taken by the claims representative.
Which one of the following correctly describes how this can benefit both Hannah and the claim
representative?
Answer:
The claim representative will have time to think and reflect on follow up questions. Hannah will
be guided by her attorney.
Question 3:
There are three qualities that show recorded statements to be effective. One of these qualities
is Coherence. Which one of the following best identifies another quality for an effective
recorded statement?
Answer:
Completeness
Question 4:
A measure of losses and loss adjustment expenses against earned premiums which reflects the
percentage of premiums being consumed by losses is identified as which one of the following?
Loss ratio
Which one of the following is reported to the federal government as required by the U. S. Office
of Foreign Assets Control (OFAC)?
Answer:
Certain claim payments
,Question 5:
Which one of the following sworn statements has little cost associated with them, and provide
a valuable method of obtaining and preserving information about the facts of a loss?
Recorded statements
Loss event videos are usually not edited because
Answer:
Editing would detract from the video's credibility.
Question 6:
Many state governments and the federal government require reporting of suspected fraudulent
claims by insurers and special investigation units (SIU's). State and federal governments use
insurance fraud statistics to develop
Answer:
Prevention services.
Question 7:
Ron was the adjuster for ABC Insurance and was handling an automobile claim with a
subrogation interest. After the accident, a vehicle inspection determined that the steering
system had failed which caused the insured to strike a building. Ron adjusted the claim for the
physical damage to the automobile and the building and concluded the salvage disposal. Upon
presenting the subrogation claim to the automobile manufacturer they demanded to inspect
the vehicle. Ron's disposal of the automobile salvage prior to concluding the subrogation claims
is best identified as which one of the following?
Answer:
Spoliation of evidence
Question 8:
Photographs, maps, diagrams, and video are useful means to document evidence for a claim.
These items are most appropriately referred to as which one of the following?
Representational documents
Ron was the adjuster for ABC Insurance and was handling an automobile claim with a
subrogation interest. After the accident, a vehicle inspection determined that the steering
system had failed which caused the insured to strike a building. Ron adjusted the claim for the
physical damage to the automobile and the building and concluded the salvage disposal. Upon
presenting the subrogation claim to the automobile manufacturer they demanded to inspect
the vehicle. Which one of the following actions would best protect Ron from a claim of
spoliation from the automobile manufacturer?
Answer:
Preserve the parts in question
, Question 9:
Which one of the following types of sworn statements provides the insurer with an opportunity
to assess how the insured will perform as a witness during the litigation process?
Examination under oath (EUO)
Mike reported a claim for property damage to his home. The damage involved a collapse of
part of the structure and appeared to be related to the grading around the home as well as the
land near to the lot that Mike's home was on. In order to appropriately document the cause of
the damage, which one of the following would be the best selection?
Answer:
Maps
Question 10:
A map can be used to show the location of places that are relevant to the case. Maps should be
prepared by professionally trained
Answer:
Engineers
Question 11:
What should be noted on a diagram of an accident scene?
Answer:
Location
Question 12:
A stakeholder which supplies information required to calculate insurance rates, develop rating
plans, and estimate loss reserves is best identified as which one of the following?
Actuary
Sally was adjusting losses for Reliable Insurance and handled a fire loss for a home where a
small fire occurred near the coffee pot and caused heavy smoke damage throughout the
kitchen and burns to the cabinetry. The cause of the loss was not clear at the time, but a recall
on the coffee pot for a faulty heating element that could overheat and cause a fire was received
two months after the claim was settled.Sally copied the claim file and submitted a subrogation
claim because the damages appeared to be caused by the coffee pot appliance. The
manufacturer attempted to reject the claim based on spoliation of evidence. Which one of the
following would be the best defense in this claim for subrogation?
Answer:
Litigation was not contemplated when the evidence was destroyed
