1
AIC 304 EXAM WITH CORRECT ACTUAL QUESTIONS
AND CORRECTLY WELL DEFINED ANSWERS LATEST
ALREADY GRADED A+
Paris Cuisine, a fine-dining restaurant, rents space in a commercial building, which
is insured by its owner. Paris Cuisine spends $50,000 on wallpaper, floor
coverings, windows, and other improvements that would remain in the building if
Paris Cuisine were to move out. Paris Cuisine's interest in these improvements is
insured under which one of the following? - ...(ANSWERS)....A. The business
personal property section of Paris Cuisine's BPP
B. The leasehold improvements section of the building owner's BPP
C. The property of others section of the building owner's BPP
D. The building portion of Paris Cuisine's Building and Personal Property Coverage
Form (BPP)
A
Insureds who want to suspend the coinsurance provision may do so through -
...(ANSWERS)....A. The BPP's Agreed Value optional coverage.
B. Engaging a reinsurer.
C. Arbitration with the insurer.
D. The insurance-to-value provision.
A
, 2
In a property loss, a list of damaged areas with proposed remediation actions for
each area is called - ...(ANSWERS)....A. A loss plan.
B. A scope.
C. An inventory.
D. A checklist.
B
Sho is investigating a large merchandise loss for an insured. He has avoided
making commitments that may waive policy conditions, outlined the claims
handling process, learned how the insured business operates, and inspected the
premises and the damaged merchandise. Which one the following actions by Sho
is part of the preliminary survey? - ...(ANSWERS)....A. Avoided commitments
B. Inspection of premises
C. Outline of the process
D. Learned the operation
B
Julio's washing machine malfunctions, flooding his basement. The appliance is
covered by a service agreement, which pays for the repairs to the machine itself.
Julio's insurer covers the rest of the loss. This other-insurance method is often
called - ...(ANSWERS)....A. The primary/excess method.
B. The pro-rata method.
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C. Contribution by limits.
D. The proportional-share method.
A
Jack owns a souvenir shop in a beach resort town, doing most of his business
during the summer months. In considering coverage beyond his policy limits,
which one of the following is most likely to be useful to Jack? - ...(ANSWERS)....A.
Peak season endorsement
B. Increased cost of construction
C. Inflation guard
D. Extended replacement cost coverage
A
Luis is handling a claim for property damage in which the insured maintains that
his manufacturing equipment was damage by a power surge from lightning. He
referenced the National Weather Service and determined that there was a
lightning strike in the area on the date of the loss, but it did not strike the insured
property directly. Luis should - ...(ANSWERS)....A. Deny the claim because the
damage was not caused by a latent defect.
B. Hire a repair professional to confirm the damage was caused by lightning.
C. Accept the claim because the property policy covers mechanical breakdown.
D. Deny the claim because the lightning did not strike the insured property
AIC 304 EXAM WITH CORRECT ACTUAL QUESTIONS
AND CORRECTLY WELL DEFINED ANSWERS LATEST
ALREADY GRADED A+
Paris Cuisine, a fine-dining restaurant, rents space in a commercial building, which
is insured by its owner. Paris Cuisine spends $50,000 on wallpaper, floor
coverings, windows, and other improvements that would remain in the building if
Paris Cuisine were to move out. Paris Cuisine's interest in these improvements is
insured under which one of the following? - ...(ANSWERS)....A. The business
personal property section of Paris Cuisine's BPP
B. The leasehold improvements section of the building owner's BPP
C. The property of others section of the building owner's BPP
D. The building portion of Paris Cuisine's Building and Personal Property Coverage
Form (BPP)
A
Insureds who want to suspend the coinsurance provision may do so through -
...(ANSWERS)....A. The BPP's Agreed Value optional coverage.
B. Engaging a reinsurer.
C. Arbitration with the insurer.
D. The insurance-to-value provision.
A
, 2
In a property loss, a list of damaged areas with proposed remediation actions for
each area is called - ...(ANSWERS)....A. A loss plan.
B. A scope.
C. An inventory.
D. A checklist.
B
Sho is investigating a large merchandise loss for an insured. He has avoided
making commitments that may waive policy conditions, outlined the claims
handling process, learned how the insured business operates, and inspected the
premises and the damaged merchandise. Which one the following actions by Sho
is part of the preliminary survey? - ...(ANSWERS)....A. Avoided commitments
B. Inspection of premises
C. Outline of the process
D. Learned the operation
B
Julio's washing machine malfunctions, flooding his basement. The appliance is
covered by a service agreement, which pays for the repairs to the machine itself.
Julio's insurer covers the rest of the loss. This other-insurance method is often
called - ...(ANSWERS)....A. The primary/excess method.
B. The pro-rata method.
, 3
C. Contribution by limits.
D. The proportional-share method.
A
Jack owns a souvenir shop in a beach resort town, doing most of his business
during the summer months. In considering coverage beyond his policy limits,
which one of the following is most likely to be useful to Jack? - ...(ANSWERS)....A.
Peak season endorsement
B. Increased cost of construction
C. Inflation guard
D. Extended replacement cost coverage
A
Luis is handling a claim for property damage in which the insured maintains that
his manufacturing equipment was damage by a power surge from lightning. He
referenced the National Weather Service and determined that there was a
lightning strike in the area on the date of the loss, but it did not strike the insured
property directly. Luis should - ...(ANSWERS)....A. Deny the claim because the
damage was not caused by a latent defect.
B. Hire a repair professional to confirm the damage was caused by lightning.
C. Accept the claim because the property policy covers mechanical breakdown.
D. Deny the claim because the lightning did not strike the insured property
