©THEBRIGHT 2025 ALL RIGHTS RESERVED 11:11AM.
AIC 304 STUDY Exam Questions And
Answers 2025 Update.
The insurance-to-value provision often found in homeowners policies applies only to -
Answer✔A. Property insured under Coverage A--Dwelling.
B. Personal property.
C. Property insured under Coverage A--Dwelling and Coverage B--Other Structures.
D. Property insured under Coverage B--Other Structures
C
Benjamin is a claims representative handling a merchandise loss. He needs someone to prepare
an inventory of the damaged goods, verify their value, preserve damaged items, locate the best
market for salvageable items, and oversee the sale. Benjamin should hire a(n) - Answer✔A.
Wholesaler.
B. Salvor.
C. Public adjuster.
D. Junk dealer.
B
Philip is a claims representative for Goshen Insurance. He is working on a motor truck cargo
(MTC) liability claim and is trying to determine if the entity facing legal liability for the cargo loss
is an insured under the MTC policy. In addition to the blanket MTC policy, Philip will need to
review which one of the following? - Answer✔A. The schedule of vehicles
B. The insured's trip transit policy
C. The schedule of terminals
D. The carrier section of the bill of lading
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, ©THEBRIGHT 2025 ALL RIGHTS RESERVED 11:11AM.
D
Brenda and Tyrone are homeowners with a monthly mortgage of $1,200. Their home sustains
damage from a fire, and restoration is expected to take several months to complete. They rent
an apartment with a monthly rent of $1,500 to occupy during restoration. Which one of the
following statements regarding their additional living expenses under Coverage D in ISO
homeowners policy forms is most accurate? - Answer✔A. They would be covered for $2,700,
the total of both their mortgage and the rent on their temporary apartment.
B. They would be covered for $1,500 a month, the full rent on their temporary apartment.
C. They would be covered for $300 a month, the difference between their mortgage and
temporary monthly rent.
D. There would be no coverage, as additional living expenses are provided only if the temporary
housing expense is equal to or less than that of the damaged property.
B
Katarina is a claims representative who is discussing a property loss incident with the insured.
She has asked him if a violent expansion of air occurred, if a loud noise was reported, and if a
sudden and violent outbreak of physical forces occurred. Katarina is trying to determine -
Answer✔A. Whether a fire occurred.
B. Grounds for denying the claim.
C. Whether an explosion occurred.
D. Grounds for accepting the claim.
C
Alex is a claims adjuster handling a claim for theft of covered property. Alex's first step should
be to - Answer✔A. Confirm who owns the property that has been reported stolen.
B. Determine if theft is a covered loss and identify policy limitations.
C. Determine who has an insurable interest in the property.
D. Obtain a police report of the incident.
B
Lamar holds an occurrence-based homeowners policy from Gamma Insurance with an
expiration date of July 31. He decides to switch insurers, and executes a new policy with
2
AIC 304 STUDY Exam Questions And
Answers 2025 Update.
The insurance-to-value provision often found in homeowners policies applies only to -
Answer✔A. Property insured under Coverage A--Dwelling.
B. Personal property.
C. Property insured under Coverage A--Dwelling and Coverage B--Other Structures.
D. Property insured under Coverage B--Other Structures
C
Benjamin is a claims representative handling a merchandise loss. He needs someone to prepare
an inventory of the damaged goods, verify their value, preserve damaged items, locate the best
market for salvageable items, and oversee the sale. Benjamin should hire a(n) - Answer✔A.
Wholesaler.
B. Salvor.
C. Public adjuster.
D. Junk dealer.
B
Philip is a claims representative for Goshen Insurance. He is working on a motor truck cargo
(MTC) liability claim and is trying to determine if the entity facing legal liability for the cargo loss
is an insured under the MTC policy. In addition to the blanket MTC policy, Philip will need to
review which one of the following? - Answer✔A. The schedule of vehicles
B. The insured's trip transit policy
C. The schedule of terminals
D. The carrier section of the bill of lading
1
, ©THEBRIGHT 2025 ALL RIGHTS RESERVED 11:11AM.
D
Brenda and Tyrone are homeowners with a monthly mortgage of $1,200. Their home sustains
damage from a fire, and restoration is expected to take several months to complete. They rent
an apartment with a monthly rent of $1,500 to occupy during restoration. Which one of the
following statements regarding their additional living expenses under Coverage D in ISO
homeowners policy forms is most accurate? - Answer✔A. They would be covered for $2,700,
the total of both their mortgage and the rent on their temporary apartment.
B. They would be covered for $1,500 a month, the full rent on their temporary apartment.
C. They would be covered for $300 a month, the difference between their mortgage and
temporary monthly rent.
D. There would be no coverage, as additional living expenses are provided only if the temporary
housing expense is equal to or less than that of the damaged property.
B
Katarina is a claims representative who is discussing a property loss incident with the insured.
She has asked him if a violent expansion of air occurred, if a loud noise was reported, and if a
sudden and violent outbreak of physical forces occurred. Katarina is trying to determine -
Answer✔A. Whether a fire occurred.
B. Grounds for denying the claim.
C. Whether an explosion occurred.
D. Grounds for accepting the claim.
C
Alex is a claims adjuster handling a claim for theft of covered property. Alex's first step should
be to - Answer✔A. Confirm who owns the property that has been reported stolen.
B. Determine if theft is a covered loss and identify policy limitations.
C. Determine who has an insurable interest in the property.
D. Obtain a police report of the incident.
B
Lamar holds an occurrence-based homeowners policy from Gamma Insurance with an
expiration date of July 31. He decides to switch insurers, and executes a new policy with
2
