AIC 300 -CLAIMS IN AN EVOLVING WORLD
|ACTUAL QUESTIONS AND VERIFIED
ANSWERS|BRAND NEW 2026-2027
UPDATE|GRADED A+
Question 1
Adam manages a claims department for an insurer. He measures the department's
performance by best practices, claims audits, customer satisfaction data, and loss ratio.
Which one of Adam's measures refers to a system of identified internal practices that
claims representatives perform to produce superior performance?
A. Claims audits
B. Best practices
C. Loss ratio
D. Customer satisfaction data
CORRECT ANSWER
B. Best practices
Best practices generally refers to a system of identified internal practices that are shared
with claims reps and produce superior performance.
Question 2
DaJuan, a claims representative, sets a low case reserve for a seemingly simple claim. A
few weeks later it becomes apparent that the initial reserve was too low, and he increases
it in order to issue payments. More bills related to the claim arrive a few months later, and
he increases the reserve again. This process is known as
Select one:
A. Readjusting.
1
,B. Stairstepping
C. Reopening.
D. Incremental reserving.
CORRECT ANSWER
B. Stairstepping.
Correct. The process of repeatedly increasing the reserve for a claim is called
stairstepping.
Question 3
Olivia is careful to keep proper claim status notes when she handles a claim. For example,
she makes sure to only include neutral, objective comments about the parties involved.
This is because claim notes
Select one:
A. Are potentially discoverable in a trial.
B. Continue for as long as the claim is open.
C. Present a chronology of the life of the claim.
D. Must be able to speak for themselves.
CORRECT ANSWER
A. Are potentially discoverable in a trial.
Correct. Are potentially discoverable in a trial. Seemingly innocuous comments can be
devastating when read to a jury.
Question 4
Ciara is going to college with the goal of working as a data scientist for an insurer. She will
need a strong foundation in mathematics and statistics, computer programming, domain
2
, knowledge, and data science. Which one of Ciara's skills will require her to understand the
insurance profession to which the data is being applied?
Select one:
A. Mathematics and statistics
B. Data science
C. Computer programming
D. Domain knowledge
CORRECT ANSWER
Domain knowledge
...is the understanding of the discipline, profession, or activity to which the data is being
applied.
Question 5
rin helps her employer, a multi-line insurer, to determine actual exposure and premium for
coverage. She does this by conducting detailed examinations of policyholder operations,
records, and accounting. Erin is a(n)
Select one:
A. Underwriter
B. Premium auditor.
C. Claims adjuster.
D. Producer.
CORRECT ANSWER
Premium auditor.
Premium auditors provide inventory values, contractors' equipment lists, and other facts
that are important to the claims function.
3
|ACTUAL QUESTIONS AND VERIFIED
ANSWERS|BRAND NEW 2026-2027
UPDATE|GRADED A+
Question 1
Adam manages a claims department for an insurer. He measures the department's
performance by best practices, claims audits, customer satisfaction data, and loss ratio.
Which one of Adam's measures refers to a system of identified internal practices that
claims representatives perform to produce superior performance?
A. Claims audits
B. Best practices
C. Loss ratio
D. Customer satisfaction data
CORRECT ANSWER
B. Best practices
Best practices generally refers to a system of identified internal practices that are shared
with claims reps and produce superior performance.
Question 2
DaJuan, a claims representative, sets a low case reserve for a seemingly simple claim. A
few weeks later it becomes apparent that the initial reserve was too low, and he increases
it in order to issue payments. More bills related to the claim arrive a few months later, and
he increases the reserve again. This process is known as
Select one:
A. Readjusting.
1
,B. Stairstepping
C. Reopening.
D. Incremental reserving.
CORRECT ANSWER
B. Stairstepping.
Correct. The process of repeatedly increasing the reserve for a claim is called
stairstepping.
Question 3
Olivia is careful to keep proper claim status notes when she handles a claim. For example,
she makes sure to only include neutral, objective comments about the parties involved.
This is because claim notes
Select one:
A. Are potentially discoverable in a trial.
B. Continue for as long as the claim is open.
C. Present a chronology of the life of the claim.
D. Must be able to speak for themselves.
CORRECT ANSWER
A. Are potentially discoverable in a trial.
Correct. Are potentially discoverable in a trial. Seemingly innocuous comments can be
devastating when read to a jury.
Question 4
Ciara is going to college with the goal of working as a data scientist for an insurer. She will
need a strong foundation in mathematics and statistics, computer programming, domain
2
, knowledge, and data science. Which one of Ciara's skills will require her to understand the
insurance profession to which the data is being applied?
Select one:
A. Mathematics and statistics
B. Data science
C. Computer programming
D. Domain knowledge
CORRECT ANSWER
Domain knowledge
...is the understanding of the discipline, profession, or activity to which the data is being
applied.
Question 5
rin helps her employer, a multi-line insurer, to determine actual exposure and premium for
coverage. She does this by conducting detailed examinations of policyholder operations,
records, and accounting. Erin is a(n)
Select one:
A. Underwriter
B. Premium auditor.
C. Claims adjuster.
D. Producer.
CORRECT ANSWER
Premium auditor.
Premium auditors provide inventory values, contractors' equipment lists, and other facts
that are important to the claims function.
3
