AIC 30 Exam Questions with Correct Answers Latest Update 2026/2027
First Party Focus - Answers Coverage and Amount of damage
Second Party - Answers Insurance Company
First Party - Answers Insured
Third Party - Answers Claimant
Third Party Focus - Answers Liability, Coverage, and Amount of damage
Third Party Administrator (TPA) - Answers an organization that provides admin services
associated with risk financing and insurance. They handle claims and risk management for self-
insured organizations
Independent Adjuster - Answers handles claims for the insurer for a fee. Works for the insurer
Public Adjuster - Answers an outside organization that is hired by the insured to represent the
insured in the claim for a fee. Works for the public
Quantitative Measures - Answers can have actual numbers assigned, such as number of claims
opened and percentage of subrogation recovery
Qualitative Measures - Answers related to intangible measures. nothing concrete, did they do a
good job? do they have good negotiation skills?
Ethics - Answers the study of what constitutes good and bad behavior, dealing with the moral
duty and obligation
Conflict of Interest - Answers a situation that occurs when a decision makers personal interests
interfere to the extent that he/she makes decisions that adversely affect the customer, claimant,
or employer
Ex Parte Contract - Answers contracts in which only 1 party is heard. discussing the claim with
the represented person without benefit of their attorney being involved. this is not illegal, but its
not ethical.
Fraud - Answers an intentional misrepresentation resulting in harm to another person or
organization
Code of Ethics - Answers professional guidelines of behavior within an organization or
profession
N.A.I.C - Answers The National Association of Insurance Commissioners
Model Laws - Answers NAIC develops that they feel is an appropriate law related to
insurance/risk management
, Model Laws - Goal - Answers to standardize the laws related to insurance, to address issues
related to insurance
Unfair Claims Settlement Practice Act - Answers to prevent insurance companies from taking
unfair advantage of the insured/claimants
Reservations of Rights Letter - Answers an insurer's letter that specifies coverage issues and
informs the insured that the insurer is handling a claim with the understanding that the insurer
may later deny coverage should the facts warrant it.
Waiver - Answers the intentional/unintentional relinquishing (give up) of a known right. (written,
verbally, or by actions taken)
Estoppel - Answers a legal principal that prohibits a party from asserting a claim or a right once
it has been waived and the other party relied upon that information to their detriment.
Non Waiver Agreement - Answers a signed agreement indicating that during the course of the
investigation, neither the insurer nor the insured waives their rights under the policy, the insured
is to sign and return the agreement
Legal Liability - Answers the legally enforceable obligation for a person or organization to pay a
sum of money (damages) to another person or organization
Statutory Law - Answers the formal law or statutes enacted by legislative bodies such as
congress, the state legislature, the Senate, or the town council
Negligence - Answers the failure to exercise due care that a reasonable person would do in a
similar situation to avoid harming others
Four Parts of Negligence - Answers - a duty owed to protect (or not go out of your way to harm)
another party. - a breach of that duty - damage or injury occurs, - the damage or injury was a
direct result of the breach of the duty.
Contributory Negligence - Answers a common-law principal that prevents a person who has
been harmed from recovering damages if that person's own negligence in any way contributed
to the harm
Comparative Negligence - Answers a common-law principal that requires both parties to a loss
to share in the financial burden of the bodily injury or property damage according to their
respective degrees of fault.
Strict Liability - Answers what you are doing is so inherently dangerous, if anything goes wrong
you are held liable. You may have done everything you can to protect the others, but if anything
goes wrong, you still pay.
Intentional torts - Answers doing something on purpose to harm another. Slander, libel, invasion
First Party Focus - Answers Coverage and Amount of damage
Second Party - Answers Insurance Company
First Party - Answers Insured
Third Party - Answers Claimant
Third Party Focus - Answers Liability, Coverage, and Amount of damage
Third Party Administrator (TPA) - Answers an organization that provides admin services
associated with risk financing and insurance. They handle claims and risk management for self-
insured organizations
Independent Adjuster - Answers handles claims for the insurer for a fee. Works for the insurer
Public Adjuster - Answers an outside organization that is hired by the insured to represent the
insured in the claim for a fee. Works for the public
Quantitative Measures - Answers can have actual numbers assigned, such as number of claims
opened and percentage of subrogation recovery
Qualitative Measures - Answers related to intangible measures. nothing concrete, did they do a
good job? do they have good negotiation skills?
Ethics - Answers the study of what constitutes good and bad behavior, dealing with the moral
duty and obligation
Conflict of Interest - Answers a situation that occurs when a decision makers personal interests
interfere to the extent that he/she makes decisions that adversely affect the customer, claimant,
or employer
Ex Parte Contract - Answers contracts in which only 1 party is heard. discussing the claim with
the represented person without benefit of their attorney being involved. this is not illegal, but its
not ethical.
Fraud - Answers an intentional misrepresentation resulting in harm to another person or
organization
Code of Ethics - Answers professional guidelines of behavior within an organization or
profession
N.A.I.C - Answers The National Association of Insurance Commissioners
Model Laws - Answers NAIC develops that they feel is an appropriate law related to
insurance/risk management
, Model Laws - Goal - Answers to standardize the laws related to insurance, to address issues
related to insurance
Unfair Claims Settlement Practice Act - Answers to prevent insurance companies from taking
unfair advantage of the insured/claimants
Reservations of Rights Letter - Answers an insurer's letter that specifies coverage issues and
informs the insured that the insurer is handling a claim with the understanding that the insurer
may later deny coverage should the facts warrant it.
Waiver - Answers the intentional/unintentional relinquishing (give up) of a known right. (written,
verbally, or by actions taken)
Estoppel - Answers a legal principal that prohibits a party from asserting a claim or a right once
it has been waived and the other party relied upon that information to their detriment.
Non Waiver Agreement - Answers a signed agreement indicating that during the course of the
investigation, neither the insurer nor the insured waives their rights under the policy, the insured
is to sign and return the agreement
Legal Liability - Answers the legally enforceable obligation for a person or organization to pay a
sum of money (damages) to another person or organization
Statutory Law - Answers the formal law or statutes enacted by legislative bodies such as
congress, the state legislature, the Senate, or the town council
Negligence - Answers the failure to exercise due care that a reasonable person would do in a
similar situation to avoid harming others
Four Parts of Negligence - Answers - a duty owed to protect (or not go out of your way to harm)
another party. - a breach of that duty - damage or injury occurs, - the damage or injury was a
direct result of the breach of the duty.
Contributory Negligence - Answers a common-law principal that prevents a person who has
been harmed from recovering damages if that person's own negligence in any way contributed
to the harm
Comparative Negligence - Answers a common-law principal that requires both parties to a loss
to share in the financial burden of the bodily injury or property damage according to their
respective degrees of fault.
Strict Liability - Answers what you are doing is so inherently dangerous, if anything goes wrong
you are held liable. You may have done everything you can to protect the others, but if anything
goes wrong, you still pay.
Intentional torts - Answers doing something on purpose to harm another. Slander, libel, invasion
