AIC 304 Exam Questions and Answers |Fall 2025/2026 Update
| 100% Correct Latest
Question 1
Nationwide Marine Definition
Correct Answer
Statement of the types of property that may be insured on inland marine and ocean marine insurance forms.
Question 2
Which one of the following loss scenarios would be most likely to require review of an insured's general ledger, banking
records and tax statements?
Correct Answer
An insured claims loss of business income following a gas leak in the area that forced the store to close for several days.
Question 3
Shondra owns a commercial office building and holds an insurance policy that applies one deductible for most causes of
loss but a different, higher deductible for other specified causes. This is called a(n)
Correct Answer
Split deductible.
Page 1 of 34
,Question 4
Security interest
Correct Answer
An interest in property (real or personal) that allows the property to be sold on default to satisfy the debt for which the
security interest was given.
Question 5
Actual cash value (ACV)
Correct Answer
The cost to replace property with new property of like kind and quality less depreciation.
Question 6
Agreed value method
Correct Answer
A method of valuing property in which the insurer and the insured agree, at the time the policy is written, on the
maximum amount that will be paid in the event of a total loss.
Question 7
Annual transit policies and trip transit policies typically use which one of the following methods to value shipments
between a seller and a buyer?
Correct Answer
Invoice price
Page 2 of 34
,Question 8
Inland marine insurance
Correct Answer
Insurance that covers many different classes of property that typically involve an element of transportation on land.
Question 9
Annual transit policy
Correct Answer
Policy that covers all shipments made or received by the insured throughout a one-year policy period.
Question 10
Adam is a professional who is involved in a claim for fire damage. To ensure he uses proper methodology, he is considering
the following factors: Was the scene adequately investigated and documented with diagrams and photos? Was the point of
origin definitively established? Has the source of ignition been identified? What events led to the fire starting? Was all of
the available evidence securely collected? Were all of the witnesses interviewed in a comprehensive fashion? Adam is a
Correct Answer
Fire investigator.
Question 11
To identify affected areas and every insured in those areas immediately following a catastrophe, insurers will typically
Correct Answer
Deploy an initial survey team.
Page 3 of 34
, Question 12
In a property loss, statements may be taken from the insured and any witnesses to establish the extent of the loss, the
cause of the loss, and the property's
Correct Answer
Ownership.
Question 13
A claims rep is most likely to use the book value method to determine cost of goods sold for a loss involving
Correct Answer
Out-of-sight merchandise.
Question 14
Period of restoration
Correct Answer
The period during which business income loss is covered under the BIC forms; it begins 72 hours after the physical loss
occurs and ends when the property is (or should have been) restored to use with reasonable speed. (With regard to extra
expense coverage, it begins immediately after the physical loss occurs.)
Question 15
Cost of goods sold
Correct Answer
An expense representing the cost of merchandise sold to customers during the period.
Page 4 of 34
| 100% Correct Latest
Question 1
Nationwide Marine Definition
Correct Answer
Statement of the types of property that may be insured on inland marine and ocean marine insurance forms.
Question 2
Which one of the following loss scenarios would be most likely to require review of an insured's general ledger, banking
records and tax statements?
Correct Answer
An insured claims loss of business income following a gas leak in the area that forced the store to close for several days.
Question 3
Shondra owns a commercial office building and holds an insurance policy that applies one deductible for most causes of
loss but a different, higher deductible for other specified causes. This is called a(n)
Correct Answer
Split deductible.
Page 1 of 34
,Question 4
Security interest
Correct Answer
An interest in property (real or personal) that allows the property to be sold on default to satisfy the debt for which the
security interest was given.
Question 5
Actual cash value (ACV)
Correct Answer
The cost to replace property with new property of like kind and quality less depreciation.
Question 6
Agreed value method
Correct Answer
A method of valuing property in which the insurer and the insured agree, at the time the policy is written, on the
maximum amount that will be paid in the event of a total loss.
Question 7
Annual transit policies and trip transit policies typically use which one of the following methods to value shipments
between a seller and a buyer?
Correct Answer
Invoice price
Page 2 of 34
,Question 8
Inland marine insurance
Correct Answer
Insurance that covers many different classes of property that typically involve an element of transportation on land.
Question 9
Annual transit policy
Correct Answer
Policy that covers all shipments made or received by the insured throughout a one-year policy period.
Question 10
Adam is a professional who is involved in a claim for fire damage. To ensure he uses proper methodology, he is considering
the following factors: Was the scene adequately investigated and documented with diagrams and photos? Was the point of
origin definitively established? Has the source of ignition been identified? What events led to the fire starting? Was all of
the available evidence securely collected? Were all of the witnesses interviewed in a comprehensive fashion? Adam is a
Correct Answer
Fire investigator.
Question 11
To identify affected areas and every insured in those areas immediately following a catastrophe, insurers will typically
Correct Answer
Deploy an initial survey team.
Page 3 of 34
, Question 12
In a property loss, statements may be taken from the insured and any witnesses to establish the extent of the loss, the
cause of the loss, and the property's
Correct Answer
Ownership.
Question 13
A claims rep is most likely to use the book value method to determine cost of goods sold for a loss involving
Correct Answer
Out-of-sight merchandise.
Question 14
Period of restoration
Correct Answer
The period during which business income loss is covered under the BIC forms; it begins 72 hours after the physical loss
occurs and ends when the property is (or should have been) restored to use with reasonable speed. (With regard to extra
expense coverage, it begins immediately after the physical loss occurs.)
Question 15
Cost of goods sold
Correct Answer
An expense representing the cost of merchandise sold to customers during the period.
Page 4 of 34
