AIC 304 Exam Study Guide Questions and Answers |Fall
2025/2026 Update | 100% Correct Latest
Question 1
The insurance-to-value provision often found in homeowners policies applies only to
Correct 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
Question 2
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)
Correct Answer
A. Wholesaler.
B. Salvor.
C. Public adjuster.
D. Junk dealer.
B
Page 1 of 25
,Question 3
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?
Correct 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
D
Question 4
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?
Correct 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
Page 2 of 25
, Question 5
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
Correct Answer
A. Whether a fire occurred.
B. Grounds for denying the claim.
C. Whether an explosion occurred.
D. Grounds for accepting the claim.
C
Question 6
Alex is a claims adjuster handling a claim for theft of covered property. Alex's first step should be to
Correct 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
Page 3 of 25
2025/2026 Update | 100% Correct Latest
Question 1
The insurance-to-value provision often found in homeowners policies applies only to
Correct 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
Question 2
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)
Correct Answer
A. Wholesaler.
B. Salvor.
C. Public adjuster.
D. Junk dealer.
B
Page 1 of 25
,Question 3
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?
Correct 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
D
Question 4
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?
Correct 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
Page 2 of 25
, Question 5
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
Correct Answer
A. Whether a fire occurred.
B. Grounds for denying the claim.
C. Whether an explosion occurred.
D. Grounds for accepting the claim.
C
Question 6
Alex is a claims adjuster handling a claim for theft of covered property. Alex's first step should be to
Correct 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
Page 3 of 25
