AIC 300 Questions and Answers | Fall
2026 | 100% Correct
Indemnify - 🧠 ANSWER ✔✔To restore a party who has sustained a loss to
the same financial position that party held before the loss occurred.
Third-party administrator (TPA) - 🧠 ANSWER ✔✔An organization that
provides administrative services associated with risk financing and
insurance.
Claims representative - 🧠 ANSWER ✔✔A person responsible for
investigating, evaluating, and settling claims.
Producer - 🧠 ANSWER ✔✔Any of several kinds of insurance personnel
who place insurance and surety business with insurers and who represent
either insurers or insureds, or both.
Public adjuster - 🧠 ANSWER ✔✔An outside organization or person hired by
an insured to represent the insured in a claim in exchange for a fee.
, Premium audit - 🧠 ANSWER ✔✔Methodical examination of a policyholder's
operations, records, and books of account to determine the actual
exposure units and premium for insurance coverages already provided.
Loss ratio - 🧠 ANSWER ✔✔A ratio that measures losses and loss
adjustment expenses against earned premiums and that reflects the
percentage of premiums being consumed by losses
Loss adjustment expense (LAE) - 🧠 ANSWER ✔✔The expense that an
insurer incurs to investigate, defend, and settle claims according to the
terms specified in the insurance policy.
First notice of loss (FNOL) - 🧠 ANSWER ✔✔The initial report notifying the
insurer of a claim.
Reserve - 🧠 ANSWER ✔✔The amount the insurer estimates and sets aside
to pay on an existing claim.
Individual case method - 🧠 ANSWER ✔✔A method of setting reserves
based on the claim's circumstances and the claims representative's
experience in handling similar claims
2026 | 100% Correct
Indemnify - 🧠 ANSWER ✔✔To restore a party who has sustained a loss to
the same financial position that party held before the loss occurred.
Third-party administrator (TPA) - 🧠 ANSWER ✔✔An organization that
provides administrative services associated with risk financing and
insurance.
Claims representative - 🧠 ANSWER ✔✔A person responsible for
investigating, evaluating, and settling claims.
Producer - 🧠 ANSWER ✔✔Any of several kinds of insurance personnel
who place insurance and surety business with insurers and who represent
either insurers or insureds, or both.
Public adjuster - 🧠 ANSWER ✔✔An outside organization or person hired by
an insured to represent the insured in a claim in exchange for a fee.
, Premium audit - 🧠 ANSWER ✔✔Methodical examination of a policyholder's
operations, records, and books of account to determine the actual
exposure units and premium for insurance coverages already provided.
Loss ratio - 🧠 ANSWER ✔✔A ratio that measures losses and loss
adjustment expenses against earned premiums and that reflects the
percentage of premiums being consumed by losses
Loss adjustment expense (LAE) - 🧠 ANSWER ✔✔The expense that an
insurer incurs to investigate, defend, and settle claims according to the
terms specified in the insurance policy.
First notice of loss (FNOL) - 🧠 ANSWER ✔✔The initial report notifying the
insurer of a claim.
Reserve - 🧠 ANSWER ✔✔The amount the insurer estimates and sets aside
to pay on an existing claim.
Individual case method - 🧠 ANSWER ✔✔A method of setting reserves
based on the claim's circumstances and the claims representative's
experience in handling similar claims
