AIC 300 EXAMINATION QUESTIONS AND 100%
VERIFIED ANSWERS
B. By certified mail with a return receipt requested.
Some will also send a copy via regular mail in case the certified letter is not accepted. - Insurers
usually send denial letters
Select one:
A. By email to ensure prompt receipt by the insured.
B. By certified mail with a return receipt requested.
C. By overnight courier.
D. By registered mail.
D. Subpoenaed.
Any written claims communication may be subpoenaed. - As methods of communication evolve,
it's important for claims professionals to remember that any written claims communication may be
Select one:
A. Replaced with verbal communication.
B. Misinterpreted.
C. Edited later.
D. Subpoenaed.
D. An insured's negotiations with the insurer on a complex claim are not going well.
If a claim is complex, or if settlement negotiations are not progressing with the insurer, the insured may
hire a public adjuster to protect his or her interests. - In which one of the following scenarios is a
public adjuster most likely to become involved?
Select one:
A. An insurer finds it financially unfeasible to hire its own claims staff in a given state.
B. An insured is unable to afford legal representation to contest a claim.
C. A catastrophic disaster strikes, involving damage to many properties.
,D. An insured's negotiations with the insurer on a complex claim are not going well.
B. TPAs handle claims, keep claims records, and perform statistical analyses. - Which one of the
following statements regarding third-party administrators (TPAs) is most accurate?
Select one:
A. TPAs are typically used by businesses that have chosen not to self-insure.
B. TPAs handle claims, keep claims records, and perform statistical analyses.
C. TPAs are generally found in an insurer's claims department.
D. TPAs are employed only by independent adjusting firms.
A. Proper releases taken
Proper releases taken is a qualitative audit factor; the others are quantitative. - Hugo is
conducting an audit of a branch office claims operation. He is evaluating timeliness of reports, number of
files opened, proper releases taken, and accuracy of data entry. Which one of Hugo's metrics is a
qualitative audit factor?
Select one:
A. Proper releases taken
B. Timeliness of reports
C. Number of files opened
D. Accuracy of data entry
D. Line underwriter.
Line underwriter. This describes the duties of a line underwriter, rather than a staff underwriter. There is
not enough information to determine which line of business is being written. A public underwriter does
not exist. Line underwriters evaluate new submissions and perform renewal underwriting, usually by
working directly with insurance producers and applicants. Staff underwriters, meanwhile, manage risk
selection by working with line underwriters and coordinating decisions about products, pricing and
guidelines. - Aaron works for a multi-line insurer. He works with insurance producers and
applicants to evaluate new business submissions and conduct renewal underwriting. Aaron is a
Select one:
A. Staff underwriter.
B. Public underwriter.
C. Personal lines underwriter.
,D. Line underwriter.
D. Listening.
Claims professionals should first listen carefully to understand what the claimant is saying. - The
first key to communicating empathetically as a claims professional is
Select one:
A. A comprehensive understanding of relevant insurance policies.
B. Speaking calmly and clearly.
C. Being prepared with all documentation relating to the claim.
D. Listening.
C. Cost to investigate, defend, and settle claims.
Cost to investigate, defend, and settle claims. LAE is the expense that an insurer incurs to investigate,
defend, and settle claims according to the terms specified in the insurance policy. - Mia tracks loss
adjustment expense (LAE) as part of her management of the claims department for an insurer. Mia
considers LAE to be the
Select one:
A. Total amount of loss reserves of all claims.
B. Paid portion of claims.
C. Cost to investigate, defend, and settle claims.
D. Total incurred amount of claims.
D. Claim representative.
Claim reps collaborate with more than other insurer employees. Many insurers employ a panel of
experts that the claims rep can select according to the investigation's needs. - In her role with an
insurer, Katarina has opportunity to collaborate with not only employees from her company, but also
external experts with particular expertise. For example, as part of her investigation, she hired an
engineer to conduct a review of a machine that was involved in a personal injury. Katarina is a(n)
Select one:
A. Medical provider.
B. Expert Witness.
, C. Premium auditor.
D. Claim representative.
A. Open-ended
Open-ended questions can be used to clarify an interviewee's statements. - When Mehmet
interviews witnesses as part of his claims investigation, he asks different types of questions based on
need, such as open-ended, direct, indirect, and leading. Which type of question should Mehmet ask
when he wants to set the interviewee at ease and he is looking for explanation or elaboration of details
in the interviewee's own words?
Select one:
A. Open-ended
B. Direct
C. Indirect
D. Leading
D. Large loss report.
Most insurers have guidelines outlining when and under what circumstances large loss reports should be
prepared. - Charlotte is handling a new claim and she has set the initial reserves at $1,000,000.
She has been asked to complete an internal report summarizing all the file status information for
distribution to management and updated as more information is received. The report Charlotte is
completing is most likely a
Select one:
A. Status report.
B. Summarized report.
C. Preliminary report.
D. Large loss report.
D. 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.
The right of subrogation allows an insurer to recover payment from a negligent third party. - In
which one of the following scenarios is the right of subrogation most likely to be employed by the
insurer?
VERIFIED ANSWERS
B. By certified mail with a return receipt requested.
Some will also send a copy via regular mail in case the certified letter is not accepted. - Insurers
usually send denial letters
Select one:
A. By email to ensure prompt receipt by the insured.
B. By certified mail with a return receipt requested.
C. By overnight courier.
D. By registered mail.
D. Subpoenaed.
Any written claims communication may be subpoenaed. - As methods of communication evolve,
it's important for claims professionals to remember that any written claims communication may be
Select one:
A. Replaced with verbal communication.
B. Misinterpreted.
C. Edited later.
D. Subpoenaed.
D. An insured's negotiations with the insurer on a complex claim are not going well.
If a claim is complex, or if settlement negotiations are not progressing with the insurer, the insured may
hire a public adjuster to protect his or her interests. - In which one of the following scenarios is a
public adjuster most likely to become involved?
Select one:
A. An insurer finds it financially unfeasible to hire its own claims staff in a given state.
B. An insured is unable to afford legal representation to contest a claim.
C. A catastrophic disaster strikes, involving damage to many properties.
,D. An insured's negotiations with the insurer on a complex claim are not going well.
B. TPAs handle claims, keep claims records, and perform statistical analyses. - Which one of the
following statements regarding third-party administrators (TPAs) is most accurate?
Select one:
A. TPAs are typically used by businesses that have chosen not to self-insure.
B. TPAs handle claims, keep claims records, and perform statistical analyses.
C. TPAs are generally found in an insurer's claims department.
D. TPAs are employed only by independent adjusting firms.
A. Proper releases taken
Proper releases taken is a qualitative audit factor; the others are quantitative. - Hugo is
conducting an audit of a branch office claims operation. He is evaluating timeliness of reports, number of
files opened, proper releases taken, and accuracy of data entry. Which one of Hugo's metrics is a
qualitative audit factor?
Select one:
A. Proper releases taken
B. Timeliness of reports
C. Number of files opened
D. Accuracy of data entry
D. Line underwriter.
Line underwriter. This describes the duties of a line underwriter, rather than a staff underwriter. There is
not enough information to determine which line of business is being written. A public underwriter does
not exist. Line underwriters evaluate new submissions and perform renewal underwriting, usually by
working directly with insurance producers and applicants. Staff underwriters, meanwhile, manage risk
selection by working with line underwriters and coordinating decisions about products, pricing and
guidelines. - Aaron works for a multi-line insurer. He works with insurance producers and
applicants to evaluate new business submissions and conduct renewal underwriting. Aaron is a
Select one:
A. Staff underwriter.
B. Public underwriter.
C. Personal lines underwriter.
,D. Line underwriter.
D. Listening.
Claims professionals should first listen carefully to understand what the claimant is saying. - The
first key to communicating empathetically as a claims professional is
Select one:
A. A comprehensive understanding of relevant insurance policies.
B. Speaking calmly and clearly.
C. Being prepared with all documentation relating to the claim.
D. Listening.
C. Cost to investigate, defend, and settle claims.
Cost to investigate, defend, and settle claims. LAE is the expense that an insurer incurs to investigate,
defend, and settle claims according to the terms specified in the insurance policy. - Mia tracks loss
adjustment expense (LAE) as part of her management of the claims department for an insurer. Mia
considers LAE to be the
Select one:
A. Total amount of loss reserves of all claims.
B. Paid portion of claims.
C. Cost to investigate, defend, and settle claims.
D. Total incurred amount of claims.
D. Claim representative.
Claim reps collaborate with more than other insurer employees. Many insurers employ a panel of
experts that the claims rep can select according to the investigation's needs. - In her role with an
insurer, Katarina has opportunity to collaborate with not only employees from her company, but also
external experts with particular expertise. For example, as part of her investigation, she hired an
engineer to conduct a review of a machine that was involved in a personal injury. Katarina is a(n)
Select one:
A. Medical provider.
B. Expert Witness.
, C. Premium auditor.
D. Claim representative.
A. Open-ended
Open-ended questions can be used to clarify an interviewee's statements. - When Mehmet
interviews witnesses as part of his claims investigation, he asks different types of questions based on
need, such as open-ended, direct, indirect, and leading. Which type of question should Mehmet ask
when he wants to set the interviewee at ease and he is looking for explanation or elaboration of details
in the interviewee's own words?
Select one:
A. Open-ended
B. Direct
C. Indirect
D. Leading
D. Large loss report.
Most insurers have guidelines outlining when and under what circumstances large loss reports should be
prepared. - Charlotte is handling a new claim and she has set the initial reserves at $1,000,000.
She has been asked to complete an internal report summarizing all the file status information for
distribution to management and updated as more information is received. The report Charlotte is
completing is most likely a
Select one:
A. Status report.
B. Summarized report.
C. Preliminary report.
D. Large loss report.
D. 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.
The right of subrogation allows an insurer to recover payment from a negligent third party. - In
which one of the following scenarios is the right of subrogation most likely to be employed by the
insurer?
