AIC 300 EXAM NEWEST EXAM 2025 | ALL QUESTIONS AND
CORRECT ANSWERS WITH EXPLANATIONS | ALREADY
GRADED A+ | VERIFIED ANSWERS | LATEST EXAM
Ella sued her insurer and alleged bad-faith claim handling after the insurer
settled a claim against her that Ella thought should have been denied. As a
result of the settlement, Ella's premium increased. In her suit, Ella claimed
that the insurer rushed the investigation and did not take all of her facts into
consideration in her defense. While the court found that Ella's argument
had merit, it did not award her the full value because it found that Ella had
not provided her information to the insurer in a timely manner. The insurer
used the defense of
Select one:
A. Contributory negligence.
B. Debatable reasonable basis.
C. Comparative negligence.
D. Comparative bad faith. ---------CORRECT ANSWER-----------------C.
Comparative negligence.
In states that permit negligence as a basis for a bad-faith claim, most
use a comparative negligence approach, reducing the amount of
damages that may be awarded.
Not long after Valteri issued a denial and closed the claim, the insured sued
for coverage and alleged bad-faith claim handling against the insurer.
Valteri was able to demonstrate for his superiors that he had made a good-
faith investigation and determined that the claim was not covered by the
policy. The insurer maintains that Valteri had reasonable justification in fact
for denying the claim. The insurer is employing the
Select one:
A. Lack of standing defense.
B. Advice of counsel defense.
C. Debatable reasonable basis defense.
D. Statute of limitations defense. ---------CORRECT ANSWER-----------------
C. Debatable reasonable basis defense.
,The insurer may establish that defense that it had a reasonable basis
for questioning whether a claim was covered.
One of Julio's expectations as a claims representative is good-faith claims
handling. He keeps insureds informed about the claim because they have
that expectation and because they are most likely to make a complaint
about bad-faith claim handling. He also wishes to participate in the defense
and in discussions about the possibility of settlement. For these reasons,
Julio
Select one:
A. Conducts fair evaluations.
B. Maintains complete and accurate documentation.
C. Maintains regular and prompt communication.
D. Conducts good-faith negotiation. ---------CORRECT ANSWER--------------
---C. Maintains regular and prompt communication.
Communicating with all parties to a claim is a crucial aspect of good-
faith claims handling and resolution.
Which one of the following statements regarding state versions of the NAIC
model act is correct?
Select one:
A. Only insureds may bring lawsuits against insurers.
B. Only claimants may bring lawsuits against insurers.
C. Both insureds and claimants may bring lawsuits against insurers.
D. Some states allow insureds and claimants to bring lawsuits against
insurers, while others allow only insureds. ---------CORRECT ANSWER------
-----------D. Some states allow insureds and claimants to bring lawsuits
against insurers, while others allow only insureds.
Tobias is a claims representative who understands the importance of good-
faith claims handling, including fair evaluation, good-faith negotiation,
complete and accurate documentation, and timely contact with all parties to
a claim. Which one of Tobias' good-faith claims handling practices helps
,his employer because the parties will be more likely to remember details of
the loss accurately?
Select one:
A. Fair evaluation
B. Complete and accurate documentation
C. Timely contact with all parties to a claim
D. Good-faith negotiation ---------CORRECT ANSWER-----------------C.
Timely contact with all parties to a claim
Timely contact with all parties to a claim helps ensure that parties will
be more likely to remember details of the loss accurately.
For an excess liability claim to be filed, a final judgment or settlement must
have been entered against the insured, and
Select one:
A. The insured must have paid that judgment.
B. The amount of the judgment must be in excess of the insured's policy
limit.
C. Evidence of bad faith must be produced.
D. The insurer must have determined that coverage does not apply. ---------
CORRECT ANSWER-----------------B. The amount of the judgment must be
in excess of the insured's policy limit.
For an excess liability claim to be filed, a final judgment or settlement
must have been entered against the insured, and the amount of the
judgment must be in excess of the insured's policy limit. The insured
is not required to have paid the judgment before bringing suit.
Which one of the following best describes the term 'professionalism' as it
relates to claims professionals?
Select one:
A. The behaviors necessary to implement an ethical decision
B. Remaining silent when a competitor is disparaged publicly
C. Fulfilling the terms of an insurance contract
D. A set of principles and values ---------CORRECT ANSWER-----------------
A. The behaviors necessary to implement an ethical decision
, As a claims representative, some of Sara's goals is to benefit her employer
by ensuring the parties to a loss remember details accurately, reassuring
the parties that their claims are important, and lessening the chance that
the parties will retain attorneys. Sara accomplishes these goals through
Select one:
A. Effective claims management.
B. Regular and prompt communication.
C. Complete and accurate documentation.
D. Timely contact with all parties to a claim. ---------CORRECT ANSWER----
-------------D. Timely contact with all parties to a claim.
Early contact with parties helps to ensure details are correct, parties
feel heard, and don't feel the need for attorneys.
Erik is a claims manager for Taunton Insurance. He is leading a team of
property claims representatives responding to a recent tornado in
Kentucky. Before sending the representatives into the field, Erik has
decided to use Internet of Things (IoT) technology to assess the damage
and danger in the area. Which one of the following IoT devices would Erik
most likely use in this situation?
Select one:
A. Drones
B. Sensors
C. Smartphones
D. Telematics ---------CORRECT ANSWER-----------------A. Drones
Erik would most likely use drones to take photos or videos of the
difficult-to-reach area and assess the damage and danger. By using
the drones, he can assess the danger without risking the safety of the
claims representatives.
Luke runs his business out of a store front in a commercial building. After a
fire destroyed part of the building, Luke made a claim for damages and
CORRECT ANSWERS WITH EXPLANATIONS | ALREADY
GRADED A+ | VERIFIED ANSWERS | LATEST EXAM
Ella sued her insurer and alleged bad-faith claim handling after the insurer
settled a claim against her that Ella thought should have been denied. As a
result of the settlement, Ella's premium increased. In her suit, Ella claimed
that the insurer rushed the investigation and did not take all of her facts into
consideration in her defense. While the court found that Ella's argument
had merit, it did not award her the full value because it found that Ella had
not provided her information to the insurer in a timely manner. The insurer
used the defense of
Select one:
A. Contributory negligence.
B. Debatable reasonable basis.
C. Comparative negligence.
D. Comparative bad faith. ---------CORRECT ANSWER-----------------C.
Comparative negligence.
In states that permit negligence as a basis for a bad-faith claim, most
use a comparative negligence approach, reducing the amount of
damages that may be awarded.
Not long after Valteri issued a denial and closed the claim, the insured sued
for coverage and alleged bad-faith claim handling against the insurer.
Valteri was able to demonstrate for his superiors that he had made a good-
faith investigation and determined that the claim was not covered by the
policy. The insurer maintains that Valteri had reasonable justification in fact
for denying the claim. The insurer is employing the
Select one:
A. Lack of standing defense.
B. Advice of counsel defense.
C. Debatable reasonable basis defense.
D. Statute of limitations defense. ---------CORRECT ANSWER-----------------
C. Debatable reasonable basis defense.
,The insurer may establish that defense that it had a reasonable basis
for questioning whether a claim was covered.
One of Julio's expectations as a claims representative is good-faith claims
handling. He keeps insureds informed about the claim because they have
that expectation and because they are most likely to make a complaint
about bad-faith claim handling. He also wishes to participate in the defense
and in discussions about the possibility of settlement. For these reasons,
Julio
Select one:
A. Conducts fair evaluations.
B. Maintains complete and accurate documentation.
C. Maintains regular and prompt communication.
D. Conducts good-faith negotiation. ---------CORRECT ANSWER--------------
---C. Maintains regular and prompt communication.
Communicating with all parties to a claim is a crucial aspect of good-
faith claims handling and resolution.
Which one of the following statements regarding state versions of the NAIC
model act is correct?
Select one:
A. Only insureds may bring lawsuits against insurers.
B. Only claimants may bring lawsuits against insurers.
C. Both insureds and claimants may bring lawsuits against insurers.
D. Some states allow insureds and claimants to bring lawsuits against
insurers, while others allow only insureds. ---------CORRECT ANSWER------
-----------D. Some states allow insureds and claimants to bring lawsuits
against insurers, while others allow only insureds.
Tobias is a claims representative who understands the importance of good-
faith claims handling, including fair evaluation, good-faith negotiation,
complete and accurate documentation, and timely contact with all parties to
a claim. Which one of Tobias' good-faith claims handling practices helps
,his employer because the parties will be more likely to remember details of
the loss accurately?
Select one:
A. Fair evaluation
B. Complete and accurate documentation
C. Timely contact with all parties to a claim
D. Good-faith negotiation ---------CORRECT ANSWER-----------------C.
Timely contact with all parties to a claim
Timely contact with all parties to a claim helps ensure that parties will
be more likely to remember details of the loss accurately.
For an excess liability claim to be filed, a final judgment or settlement must
have been entered against the insured, and
Select one:
A. The insured must have paid that judgment.
B. The amount of the judgment must be in excess of the insured's policy
limit.
C. Evidence of bad faith must be produced.
D. The insurer must have determined that coverage does not apply. ---------
CORRECT ANSWER-----------------B. The amount of the judgment must be
in excess of the insured's policy limit.
For an excess liability claim to be filed, a final judgment or settlement
must have been entered against the insured, and the amount of the
judgment must be in excess of the insured's policy limit. The insured
is not required to have paid the judgment before bringing suit.
Which one of the following best describes the term 'professionalism' as it
relates to claims professionals?
Select one:
A. The behaviors necessary to implement an ethical decision
B. Remaining silent when a competitor is disparaged publicly
C. Fulfilling the terms of an insurance contract
D. A set of principles and values ---------CORRECT ANSWER-----------------
A. The behaviors necessary to implement an ethical decision
, As a claims representative, some of Sara's goals is to benefit her employer
by ensuring the parties to a loss remember details accurately, reassuring
the parties that their claims are important, and lessening the chance that
the parties will retain attorneys. Sara accomplishes these goals through
Select one:
A. Effective claims management.
B. Regular and prompt communication.
C. Complete and accurate documentation.
D. Timely contact with all parties to a claim. ---------CORRECT ANSWER----
-------------D. Timely contact with all parties to a claim.
Early contact with parties helps to ensure details are correct, parties
feel heard, and don't feel the need for attorneys.
Erik is a claims manager for Taunton Insurance. He is leading a team of
property claims representatives responding to a recent tornado in
Kentucky. Before sending the representatives into the field, Erik has
decided to use Internet of Things (IoT) technology to assess the damage
and danger in the area. Which one of the following IoT devices would Erik
most likely use in this situation?
Select one:
A. Drones
B. Sensors
C. Smartphones
D. Telematics ---------CORRECT ANSWER-----------------A. Drones
Erik would most likely use drones to take photos or videos of the
difficult-to-reach area and assess the damage and danger. By using
the drones, he can assess the danger without risking the safety of the
claims representatives.
Luke runs his business out of a store front in a commercial building. After a
fire destroyed part of the building, Luke made a claim for damages and
