AIC 300 CLAIMS IN AN EVOLVING WORLD
EXAM SCRIPT FULL QUESTIONS AND
CORRECT ANSWERS REVIEW
●● Soft fraud occurs when a claim is exaggerated and is also referred to
as
a. Opportunity fraud
b. Financial fraud
c. Reimbursement fraud
d. Victimless fraud
Answer: a. Opportunity fraud
●● In which one of the following scenarios is the right of subrogation
most likely to be employed by the insurer?
a. An insured files a homeowners claim for stolen jewelry. An
investigation reveals that the jewelry is still in the insured's possession.
b. A claims rep discovers that their insured's car accident was caused by
a road contractor who left equipment lying in the travel lanes of a
highway.
c. An investigation reveals that an insured set her own business on fire.
,d. An insured files a claim for collision damage from a hit and run
accident, when in fact he backed into a utility pole.
Answer: b. A claims rep discovers that their insured's car accident was
caused by a road contractor who left equipment lying in the travel lanes
of a highway.
●● In which one of the following scenarios is a public adjuster most
likely to become involved?
a. A catastrophic disaster strikes, involving damage to many properties.
b. An insurer finds it financially unfeasible to hire its own claims staff in
a given state.
c. An insured is unable to afford legal representation to contest a claim.
d. An insured's negotiations with the insurer on a complex claim are not
going well.
Answer: d. An insured's negotiations with the insurer on a complex
claim are not going well.
●● Carla is investigating a claim for a stolen car. The insured provided a
copy of the police report, but she notices that the account in the police
report differs from the insured's version of events. At this point, Carla
should
a. Refer the case to the SIU.
b. Deny the claim.
, c. Contact the police.
d. Continue with her investigation.
Answer: d. Continue with her investigation
●● Which one of the following methods of establishing case reserves is
used most often when there are small variations in loss size for a
particular type of claim?
a. Individual case method.
b. Formula method.
c. Average value method.
d. Roundtable method.
Answer: c. Average value method
●● Chloe is an insurer defense attorney who is preparing a trial strategy.
She has researched a court decision that was made in a similar case and
is basing the defense on that precedent. Chloe is relying on the principle
of stare decisis, which is that
a. Lower courts must follow precedents set by any other courts.
b. Lower courts must follow precedents set by higher courts.
c. Higher courts must follow precedents set by lower courts.
d. Higher courts must follow precedents set by any other counts.
EXAM SCRIPT FULL QUESTIONS AND
CORRECT ANSWERS REVIEW
●● Soft fraud occurs when a claim is exaggerated and is also referred to
as
a. Opportunity fraud
b. Financial fraud
c. Reimbursement fraud
d. Victimless fraud
Answer: a. Opportunity fraud
●● In which one of the following scenarios is the right of subrogation
most likely to be employed by the insurer?
a. An insured files a homeowners claim for stolen jewelry. An
investigation reveals that the jewelry is still in the insured's possession.
b. A claims rep discovers that their insured's car accident was caused by
a road contractor who left equipment lying in the travel lanes of a
highway.
c. An investigation reveals that an insured set her own business on fire.
,d. An insured files a claim for collision damage from a hit and run
accident, when in fact he backed into a utility pole.
Answer: b. A claims rep discovers that their insured's car accident was
caused by a road contractor who left equipment lying in the travel lanes
of a highway.
●● In which one of the following scenarios is a public adjuster most
likely to become involved?
a. A catastrophic disaster strikes, involving damage to many properties.
b. An insurer finds it financially unfeasible to hire its own claims staff in
a given state.
c. An insured is unable to afford legal representation to contest a claim.
d. An insured's negotiations with the insurer on a complex claim are not
going well.
Answer: d. An insured's negotiations with the insurer on a complex
claim are not going well.
●● Carla is investigating a claim for a stolen car. The insured provided a
copy of the police report, but she notices that the account in the police
report differs from the insured's version of events. At this point, Carla
should
a. Refer the case to the SIU.
b. Deny the claim.
, c. Contact the police.
d. Continue with her investigation.
Answer: d. Continue with her investigation
●● Which one of the following methods of establishing case reserves is
used most often when there are small variations in loss size for a
particular type of claim?
a. Individual case method.
b. Formula method.
c. Average value method.
d. Roundtable method.
Answer: c. Average value method
●● Chloe is an insurer defense attorney who is preparing a trial strategy.
She has researched a court decision that was made in a similar case and
is basing the defense on that precedent. Chloe is relying on the principle
of stare decisis, which is that
a. Lower courts must follow precedents set by any other courts.
b. Lower courts must follow precedents set by higher courts.
c. Higher courts must follow precedents set by lower courts.
d. Higher courts must follow precedents set by any other counts.
