AIC 300 Verified Exam Questions and Answers Latest update
2026/2027
Question:
Indemnify
Answer:
To restore a party who has sustained a loss to the same financial position that party held before the
loss occurred.
Question:
Third-party administrator (TPA)
Answer:
An organization that provides administrative services associated with risk financing and insurance.
Question:
Claims representative
Answer:
A person responsible for investigating, evaluating, and settling claims.
Question:
Public adjuster
Answer:
An outside organization or person hired by an insured to represent the insured in a claim in exchange
for a fee.
Question:
Premium audit
Answer:
Methodical examination of a policyholder's operations, records, and books of account to determine the
actual exposure units and premium for insurance coverages already provided.
Question:
Quantitative Audit Factors
Answer:
Number of files open, timeliness of reports, reserving and payments
,Question:
Qualitative Audit Factors
Answer:
Realistic reserving, accurate evaluation of insured's liability and follow-up on subrogation
opportunity, proper information
Question:
Loss ratio
Answer:
A ratio that measures losses and loss adjustment expenses against earned premiums and that reflects
the percentage of premiums being consumed by losses.
Question:
Loss adjustment expense (LAE)
Answer:
The expense that an insurer incurs to investigate, defend, and settle claims according to the terms
specified in the insurance policy.
Question:
Steps of Making an Initial Claims Assessment
Answer:
Acknowledging and Assigning the Claim Identifying the Policy Contacting the Insured or the
Insured's Representative
Question:
How do recorded statements and examinations under oath differ?
Answer:
An examination under oath is more formal than a recorded statement. Recorded statements are often
taken by claims representatives, typically by telephone. Examinations under oath are usually
performed by an attorney for the insurer at the insurer's office or a court reporter's office.
Question:
Effective statements exhibit these qualities
Answer:
Coherence—The statement follows a logical sequence. Completeness—The statement is thorough.
Objectivity—The statement contains facts relevant to the loss expressed in the interviewee's own
words.
, Question:
Seven-Part Method
Answer:
1. Permission and introduction—date, time,
and location of the interview, names of the parties involved in the interview, and an affirmation from
the interviewee that the interview is given with permission
Question:
2. Identification—identifying information about the person being interviewed, such as name,
address, phone number, and driver's license number
3. Setting—answers to questions such as who was involved in the loss, what was involved in the
loss, when the loss occurred, where the loss occurred, and why the loss occurred
4. Incident—a step-by-step description of how the loss occurred
5. Post incident injuries/damages—description of the property damage and bodily injuries to
individuals
6. Miscellaneous—any information the interviewee wants to add
7. Conclusion—reaffirmation that the statement was taken with permission
Reserve
Answer:
The amount the insurer estimates and sets aside to pay on an existing claim.
Question:
Individual case method
Answer:
a method of setting reserves based on the claim's circumstances and the claim representative's
experience in handling similar claims
Question:
Roundtable method
Answer:
A method of setting reserves by using the consensus of two or more claim personnel who have
independently evaluated the claim file
Question:
Average value method
Answer:
A case reserving method that establishes a predetermined dollar amount of reserve for each claim as it
is reported.
2026/2027
Question:
Indemnify
Answer:
To restore a party who has sustained a loss to the same financial position that party held before the
loss occurred.
Question:
Third-party administrator (TPA)
Answer:
An organization that provides administrative services associated with risk financing and insurance.
Question:
Claims representative
Answer:
A person responsible for investigating, evaluating, and settling claims.
Question:
Public adjuster
Answer:
An outside organization or person hired by an insured to represent the insured in a claim in exchange
for a fee.
Question:
Premium audit
Answer:
Methodical examination of a policyholder's operations, records, and books of account to determine the
actual exposure units and premium for insurance coverages already provided.
Question:
Quantitative Audit Factors
Answer:
Number of files open, timeliness of reports, reserving and payments
,Question:
Qualitative Audit Factors
Answer:
Realistic reserving, accurate evaluation of insured's liability and follow-up on subrogation
opportunity, proper information
Question:
Loss ratio
Answer:
A ratio that measures losses and loss adjustment expenses against earned premiums and that reflects
the percentage of premiums being consumed by losses.
Question:
Loss adjustment expense (LAE)
Answer:
The expense that an insurer incurs to investigate, defend, and settle claims according to the terms
specified in the insurance policy.
Question:
Steps of Making an Initial Claims Assessment
Answer:
Acknowledging and Assigning the Claim Identifying the Policy Contacting the Insured or the
Insured's Representative
Question:
How do recorded statements and examinations under oath differ?
Answer:
An examination under oath is more formal than a recorded statement. Recorded statements are often
taken by claims representatives, typically by telephone. Examinations under oath are usually
performed by an attorney for the insurer at the insurer's office or a court reporter's office.
Question:
Effective statements exhibit these qualities
Answer:
Coherence—The statement follows a logical sequence. Completeness—The statement is thorough.
Objectivity—The statement contains facts relevant to the loss expressed in the interviewee's own
words.
, Question:
Seven-Part Method
Answer:
1. Permission and introduction—date, time,
and location of the interview, names of the parties involved in the interview, and an affirmation from
the interviewee that the interview is given with permission
Question:
2. Identification—identifying information about the person being interviewed, such as name,
address, phone number, and driver's license number
3. Setting—answers to questions such as who was involved in the loss, what was involved in the
loss, when the loss occurred, where the loss occurred, and why the loss occurred
4. Incident—a step-by-step description of how the loss occurred
5. Post incident injuries/damages—description of the property damage and bodily injuries to
individuals
6. Miscellaneous—any information the interviewee wants to add
7. Conclusion—reaffirmation that the statement was taken with permission
Reserve
Answer:
The amount the insurer estimates and sets aside to pay on an existing claim.
Question:
Individual case method
Answer:
a method of setting reserves based on the claim's circumstances and the claim representative's
experience in handling similar claims
Question:
Roundtable method
Answer:
A method of setting reserves by using the consensus of two or more claim personnel who have
independently evaluated the claim file
Question:
Average value method
Answer:
A case reserving method that establishes a predetermined dollar amount of reserve for each claim as it
is reported.
