1|Page
AIC 302, 4, and 5 Questions with
Detailed Verified Answers
When a claims rep sets out to determine the cause of loss in an auto physical
damage claim, he or she should request a Ans: written or recorded statement
from the driver of the insured vehicle, even if that person does not own the
vehicle. Copies of the police report, witness statements, and an estimate of
damage can also provide important details of the loss.
After receiving a loss report for damage to an insured vehicle, a claims rep will
usually contact the insured to obtain the loss details. Depending on insurer
guidelines, he or she may take a Ans: recorded statement from the insured so
that there is a record of the loss details in the insured's own words. The
insured should be asked to verify ownership, describe the circumstances
surrounding the accident, and describe any injuries.
Rather than have claims reps take recorded statements, some insurers use
statement forms, which request accident details and, often, a diagram.
Insurers send these forms to Ans: the insured or the driver (if other than the
insured) and any passengers or witnesses to collect as much information as
possible.
The claims rep may arrange for an appraiser to inspect the damaged vehicles
and prepare damage estimates. Some insurers use auto-estimating services,
which act in many ways like traditional appraisers but also take a more holistic
approach to dealing with auto losses. Auto-estimating services often Ans:
assess vehicle damage on-site and provide a detailed report on the vehicle's
condition, including photos. In addition to performing the initial assessment,
these services can help insurers close out losses, provide check-delivery
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services, and arrange for autos that are considered total losses to be moved to
a salvage yard or auto shop.
The claims rep or appraiser should verify the vehicle identification number
(VIN), which is unique to the specific vehicle. Verifying the VIN is critical
because it reveals whether the vehicle in question was Ans: actually the
vehicle insured by the policy. The VIN can also indicate the specific parts
needed for repair.
Finally, an appraiser will prepare a damage estimate that includes the items to
be repaired or replaced, the amount of labor involved, and the parts needed.
The expected costs of materials and labor will be Ans: added in. Everything is
then communicated to the claims rep, the insured or claimant, and the repair
facility. The claims rep uses this estimate to conclude the claim.
Documentation for an auto physical damage claim usually includes these
items: Ans: Statements from the insured, drivers, and witnesses
Photos of the damaged vehicle
A police report
A fire marshal report (if applicable)
Damage estimates
Reports by experts (if applicable)
Any reports prepared by the claims rep
File activity notes
Copies of all correspondence
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If the vehicle is a total loss, whether from damage or a theft, the file should
also contain an explanation of how the total loss was Ans: calculated, the
vehicle's title, and a statement about the vehicle's disposition (whether it was
taken to a salvage yard or returned to the insured).
In the event of a fire, the claims rep may assign an Ans: origin and cause
expert to inspect the vehicle and determine how the fire started.
Fires are caused by accident, intent (arson), or negligence. If the origin and
cause expert determines that the fire was Ans: accidental, the claims rep may
not need any further information to conclude the claim.
If the fire is found to be intentional, the claims rep should work with Ans:
special investigation unit (SIU) staff to determine whether the insured was
involved.
special investigation unit (SIU) Ans: A division set up to investigate suspicious
claims, premium fraud, or application fraud.
If the expert determines that the fire was caused by negligence, such as a
faulty part or incorrect installation, the claims rep will Ans: need to determine
who installed the part and whether that party is responsible for the loss.
If an insured claims that a vehicle was stolen, one of four outcomes will occur:
Ans: The vehicle is not recovered.
The vehicle is recovered and repaired.
The vehicle is recovered but is a total loss.
The claim is denied because of fraud or another coverage defense.
AIC 302, 4, and 5 Questions with
Detailed Verified Answers
When a claims rep sets out to determine the cause of loss in an auto physical
damage claim, he or she should request a Ans: written or recorded statement
from the driver of the insured vehicle, even if that person does not own the
vehicle. Copies of the police report, witness statements, and an estimate of
damage can also provide important details of the loss.
After receiving a loss report for damage to an insured vehicle, a claims rep will
usually contact the insured to obtain the loss details. Depending on insurer
guidelines, he or she may take a Ans: recorded statement from the insured so
that there is a record of the loss details in the insured's own words. The
insured should be asked to verify ownership, describe the circumstances
surrounding the accident, and describe any injuries.
Rather than have claims reps take recorded statements, some insurers use
statement forms, which request accident details and, often, a diagram.
Insurers send these forms to Ans: the insured or the driver (if other than the
insured) and any passengers or witnesses to collect as much information as
possible.
The claims rep may arrange for an appraiser to inspect the damaged vehicles
and prepare damage estimates. Some insurers use auto-estimating services,
which act in many ways like traditional appraisers but also take a more holistic
approach to dealing with auto losses. Auto-estimating services often Ans:
assess vehicle damage on-site and provide a detailed report on the vehicle's
condition, including photos. In addition to performing the initial assessment,
these services can help insurers close out losses, provide check-delivery
,2|Page
services, and arrange for autos that are considered total losses to be moved to
a salvage yard or auto shop.
The claims rep or appraiser should verify the vehicle identification number
(VIN), which is unique to the specific vehicle. Verifying the VIN is critical
because it reveals whether the vehicle in question was Ans: actually the
vehicle insured by the policy. The VIN can also indicate the specific parts
needed for repair.
Finally, an appraiser will prepare a damage estimate that includes the items to
be repaired or replaced, the amount of labor involved, and the parts needed.
The expected costs of materials and labor will be Ans: added in. Everything is
then communicated to the claims rep, the insured or claimant, and the repair
facility. The claims rep uses this estimate to conclude the claim.
Documentation for an auto physical damage claim usually includes these
items: Ans: Statements from the insured, drivers, and witnesses
Photos of the damaged vehicle
A police report
A fire marshal report (if applicable)
Damage estimates
Reports by experts (if applicable)
Any reports prepared by the claims rep
File activity notes
Copies of all correspondence
, 3|Page
If the vehicle is a total loss, whether from damage or a theft, the file should
also contain an explanation of how the total loss was Ans: calculated, the
vehicle's title, and a statement about the vehicle's disposition (whether it was
taken to a salvage yard or returned to the insured).
In the event of a fire, the claims rep may assign an Ans: origin and cause
expert to inspect the vehicle and determine how the fire started.
Fires are caused by accident, intent (arson), or negligence. If the origin and
cause expert determines that the fire was Ans: accidental, the claims rep may
not need any further information to conclude the claim.
If the fire is found to be intentional, the claims rep should work with Ans:
special investigation unit (SIU) staff to determine whether the insured was
involved.
special investigation unit (SIU) Ans: A division set up to investigate suspicious
claims, premium fraud, or application fraud.
If the expert determines that the fire was caused by negligence, such as a
faulty part or incorrect installation, the claims rep will Ans: need to determine
who installed the part and whether that party is responsible for the loss.
If an insured claims that a vehicle was stolen, one of four outcomes will occur:
Ans: The vehicle is not recovered.
The vehicle is recovered and repaired.
The vehicle is recovered but is a total loss.
The claim is denied because of fraud or another coverage defense.
