Associate in Claims (AIC) Exam Questions
and Correct Answers (Verified Answers)
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1. Which statement best describes the primary purpose of claims
handling?
A. To maximize premium revenue
B. To eliminate all claim payments
C. To provide fair, prompt, and accurate resolution of covered losses
D. To replace underwriting decisions
Answer: C. To provide fair, prompt, and accurate resolution of
covered losses
Rationale: Claims handling is designed to determine coverage,
investigate losses, evaluate damages, and resolve valid claims fairly
and efficiently. The claims function should balance the interests of the
,insurer and policyholder while complying with policy provisions and
applicable laws.
2. Which principle requires an insurer to consider the interests of
the insured when handling a claim?
A. Subrogation
B. Good faith
C. Contribution
D. Indemnification
Answer: B. Good faith
Rationale: The duty of good faith requires insurers to act honestly,
fairly, and reasonably when handling claims. Claims professionals
should not place the insurer's interests ahead of the insured's
legitimate contractual rights.
3. What is the first major question a claims professional should
generally address after receiving a new claim?
A. Whether the insured wants to renew the policy
B. Whether the loss is potentially covered
C. Whether the insurer can increase the premium
D. Whether the claimant has filed previous claims
Answer: B. Whether the loss is potentially covered
,Rationale: Coverage analysis is fundamental to claims handling. The
adjuster must review the policy, identify applicable coverage
provisions, exclusions, conditions, and limits, and determine whether
the reported event potentially falls within the policy.
4. Which document establishes the contractual relationship
between an insurer and an insured?
A. Police report
B. Claim diary
C. Insurance policy
D. Adjuster's worksheet
Answer: C. Insurance policy
Rationale: The insurance policy is the contract that establishes the
rights and obligations of the insurer and insured. Claims decisions
must be based on the applicable policy language and other relevant
facts.
5. What is the primary purpose of a claim investigation?
A. To delay payment
B. To determine the facts and circumstances of the loss
C. To eliminate the insured's deductible
D. To increase future premiums
, Answer: B. To determine the facts and circumstances of the loss
Rationale: Investigation allows the adjuster to establish what
happened, when and where it happened, who was involved, the
extent of damage, and whether the loss is covered. A thorough
investigation supports an accurate and defensible claim decision.
6. Which of the following is an example of physical evidence in a
property claim?
A. An insured's opinion about the cause of loss
B. A witness's recollection
C. A damaged electrical component
D. An adjuster's conclusion
Answer: C. A damaged electrical component
Rationale: Physical evidence consists of tangible objects or conditions
that can help establish facts. In a property claim, damaged
equipment, photographs, debris, and other physical items can provide
important information about the cause and extent of damage.
7. What is the purpose of a recorded statement?
A. To automatically establish liability
B. To document the claimant's account of relevant facts
and Correct Answers (Verified Answers)
Plus Rationale 2027 Q&A| Instant
Download Pdf
1. Which statement best describes the primary purpose of claims
handling?
A. To maximize premium revenue
B. To eliminate all claim payments
C. To provide fair, prompt, and accurate resolution of covered losses
D. To replace underwriting decisions
Answer: C. To provide fair, prompt, and accurate resolution of
covered losses
Rationale: Claims handling is designed to determine coverage,
investigate losses, evaluate damages, and resolve valid claims fairly
and efficiently. The claims function should balance the interests of the
,insurer and policyholder while complying with policy provisions and
applicable laws.
2. Which principle requires an insurer to consider the interests of
the insured when handling a claim?
A. Subrogation
B. Good faith
C. Contribution
D. Indemnification
Answer: B. Good faith
Rationale: The duty of good faith requires insurers to act honestly,
fairly, and reasonably when handling claims. Claims professionals
should not place the insurer's interests ahead of the insured's
legitimate contractual rights.
3. What is the first major question a claims professional should
generally address after receiving a new claim?
A. Whether the insured wants to renew the policy
B. Whether the loss is potentially covered
C. Whether the insurer can increase the premium
D. Whether the claimant has filed previous claims
Answer: B. Whether the loss is potentially covered
,Rationale: Coverage analysis is fundamental to claims handling. The
adjuster must review the policy, identify applicable coverage
provisions, exclusions, conditions, and limits, and determine whether
the reported event potentially falls within the policy.
4. Which document establishes the contractual relationship
between an insurer and an insured?
A. Police report
B. Claim diary
C. Insurance policy
D. Adjuster's worksheet
Answer: C. Insurance policy
Rationale: The insurance policy is the contract that establishes the
rights and obligations of the insurer and insured. Claims decisions
must be based on the applicable policy language and other relevant
facts.
5. What is the primary purpose of a claim investigation?
A. To delay payment
B. To determine the facts and circumstances of the loss
C. To eliminate the insured's deductible
D. To increase future premiums
, Answer: B. To determine the facts and circumstances of the loss
Rationale: Investigation allows the adjuster to establish what
happened, when and where it happened, who was involved, the
extent of damage, and whether the loss is covered. A thorough
investigation supports an accurate and defensible claim decision.
6. Which of the following is an example of physical evidence in a
property claim?
A. An insured's opinion about the cause of loss
B. A witness's recollection
C. A damaged electrical component
D. An adjuster's conclusion
Answer: C. A damaged electrical component
Rationale: Physical evidence consists of tangible objects or conditions
that can help establish facts. In a property claim, damaged
equipment, photographs, debris, and other physical items can provide
important information about the cause and extent of damage.
7. What is the purpose of a recorded statement?
A. To automatically establish liability
B. To document the claimant's account of relevant facts
