AIC 304 Practice Test with 100 Questions and Correct
Answers/ AIC 304 Latest Practice Exam 2026
Alex is a claims adjuster handling a claim for theft of covered property. Alex's first
step should be to
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
Francesca is handling a claim for theft of property. She has asked the insured to
provide documentation of the theft of his television. The insured provided copies
of the warranty, the instruction manual, a photo of the television in his house, and
the original receipt. Which one of the following pieces of documentation provided
by the policyholder does Francesca considers to be the best?
A. Photograph
B. Instruction manual
C. Warranty
D. Original receipt
D
Adam is adjusting a claim for fire damage to insured property and has gathered the
following facts: multiple fires were involved; the building typically contained
flammable materials; the insured's full warehouse of inventory was damaged; and
the fire protection system sounded normally. Which one of Adam's findings could
lead him to believe the fire was incendiary?
A. Flammable materials
B. Fire protection system
C. Damaged inventory
D. Multiple fires
D
pg. 1
,Mia has submitted a claim to her property insurer for damage to her building
caused by fire. In order for her claim to progress, Mia's duties include
A. Completing a nonwaiver agreement, production of documents, and examination
under oath.
B. Submission of proof of loss, completing a nonwaiver agreement, and
examination under oath.
C. Submission of proof of loss, production of documents, and completing a
nonwaiver agreement.
D. Submission of proof of loss, production of documents, and examination under
oath.
D
Virtually all insurance policies have an option to repair or replace property instead
of paying a claim, and that decision always rests with
A. The insured.
B. The state insurance commissioner's office.
C. An arbitrator.
D. The insurer.
D
The most challenging part of the catastrophe-response process for an insurer is
A. Having adequate reserves to pay numerous losses.
B. Getting to the site.
C. Denying claims for causes that are excluded.
D. Providing adequate staff.
D
In the states that do not require licensure, public adjusting is
A. Subject to the same qualification requirements as those of a claims
representative.
B. Allowed only in losses totaling $100,000 or less.
C. Allowed only on a flat-fee basis.
D. Considered an unauthorized practice of law.
pg. 2
, D
Fernanda owns a building with several areas of water damage: a leaking water line
has dampened carpeting in the office area; overflow from a clogged utility sink has
wet the concrete floor; an overflowing toilet has wet the tile floor; and a leaking
sewer pipe has contaminated a wall. Which one of the damaged areas will likely
require Fernanda to hire professionals to remediate?
A. Toilet
B. Utility sink
C. Sewer pipe
D. Water line
C - Sewer pipe leakage is black water, which usually requires professionals to
remediate.
The insurance-to-value provision often found in homeowners policies applies only
to
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
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)
A. Wholesaler.
B. Salvor.
C. Public adjuster.
D. Junk dealer.
B
pg. 3
Answers/ AIC 304 Latest Practice Exam 2026
Alex is a claims adjuster handling a claim for theft of covered property. Alex's first
step should be to
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
Francesca is handling a claim for theft of property. She has asked the insured to
provide documentation of the theft of his television. The insured provided copies
of the warranty, the instruction manual, a photo of the television in his house, and
the original receipt. Which one of the following pieces of documentation provided
by the policyholder does Francesca considers to be the best?
A. Photograph
B. Instruction manual
C. Warranty
D. Original receipt
D
Adam is adjusting a claim for fire damage to insured property and has gathered the
following facts: multiple fires were involved; the building typically contained
flammable materials; the insured's full warehouse of inventory was damaged; and
the fire protection system sounded normally. Which one of Adam's findings could
lead him to believe the fire was incendiary?
A. Flammable materials
B. Fire protection system
C. Damaged inventory
D. Multiple fires
D
pg. 1
,Mia has submitted a claim to her property insurer for damage to her building
caused by fire. In order for her claim to progress, Mia's duties include
A. Completing a nonwaiver agreement, production of documents, and examination
under oath.
B. Submission of proof of loss, completing a nonwaiver agreement, and
examination under oath.
C. Submission of proof of loss, production of documents, and completing a
nonwaiver agreement.
D. Submission of proof of loss, production of documents, and examination under
oath.
D
Virtually all insurance policies have an option to repair or replace property instead
of paying a claim, and that decision always rests with
A. The insured.
B. The state insurance commissioner's office.
C. An arbitrator.
D. The insurer.
D
The most challenging part of the catastrophe-response process for an insurer is
A. Having adequate reserves to pay numerous losses.
B. Getting to the site.
C. Denying claims for causes that are excluded.
D. Providing adequate staff.
D
In the states that do not require licensure, public adjusting is
A. Subject to the same qualification requirements as those of a claims
representative.
B. Allowed only in losses totaling $100,000 or less.
C. Allowed only on a flat-fee basis.
D. Considered an unauthorized practice of law.
pg. 2
, D
Fernanda owns a building with several areas of water damage: a leaking water line
has dampened carpeting in the office area; overflow from a clogged utility sink has
wet the concrete floor; an overflowing toilet has wet the tile floor; and a leaking
sewer pipe has contaminated a wall. Which one of the damaged areas will likely
require Fernanda to hire professionals to remediate?
A. Toilet
B. Utility sink
C. Sewer pipe
D. Water line
C - Sewer pipe leakage is black water, which usually requires professionals to
remediate.
The insurance-to-value provision often found in homeowners policies applies only
to
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
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)
A. Wholesaler.
B. Salvor.
C. Public adjuster.
D. Junk dealer.
B
pg. 3
