AIC 302 SIMULATED EXAM Questions and Answers
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Terms in this set (50)
Conor is handling an auto claim involving the death of a A calculated value of the child's future services to the parents.
minor child in a state that recognizes the intrinsic value A calculated value of the child's future services to the parents. Intrinsic value of
of children. Conor's proposed settlement amount will children is the assumption that parents invest in children knowing that they will
include provide for them when they are older
Cristobal has several methods available to him as he Formula method involves a mathematical formula set by actuaries to set
evaluates the settlement range for his claim: reserves.
individual case method, roundtable technique, formula
method, and expert system. Which method should
Cristobal use if he is dealing with a minor soft tissue
claim and wants a simple approach to achieve an early,
mutually agreeable settlement?
Anna injured her back in a not-at-fault auto accident Was covered because it was an unavoidable consequence of the back injury.
and has a bodily injury claim with the other driver's An intervening problem is covered if it is an unavoidable consequence of the
insurance company. Later, she fell and her back injury first injury.
was aggravated. Her claims representative for the first
accident told her that the aggravation of her back injury
Some personal auto policies provide that someone Implied permission.
could reasonably expect to be allowed to use an Some policies provide for implied permission for the use of an insured's auto.
insured's vehicle even if they did not ask specifically,
such as a relative visiting from out of town. This is called
In determining coverage for emotional injury, a claims The term "harm" is potentially broader than the term "injury"
rep must understand applicable policy language. in determining coverage for emotional injury.
Which one of the following is correct?
, Mehmet was seriously injured in an automobile collision Pain and suffering can only be claimed if the decedent was conscious of the
and died after a stay in the hospital. His family is pain and suffering before dying.
bringing a survival action claim for medical expenses,
pain and suffering, loss of earnings, and automobile
repairs. Which one of the following claims will be
allowed only if the family can demonstrate that Mehmet
was conscious after the accident but before dying?
Claims reps can isolate specific coverage issues that Decision tree.
should be investigated to determine whether Claims reps can isolate specific coverage issues that should be investigated to
exclusions apply by using a series of yes-or-no determine whether exclusions apply by using a series of yes-or-no questions in
questions in the form of a the form of a decision tree.
Caitlin was involved in a multi-car accident on a The use of a hands-free device while driving can lead to a cognitive distraction.
highway. The claims representative for her insurance
company is making a case that distracted driving by
Mike, one of the other drivers involved in the accident,
was a contributing cause of the accident. The records
indicate that Mike was using a hands-free device at the
time of the accident. Which one of the following
statements is true regarding the use of a hands-free
device while driving?
Sean is an auto liability claims representative. He is All four elements of negligence exist in this accident. There was a duty owed to
working on a claim involving an insured driver who others to operate the vehicle safely, that duty was breached, and was the
rear-ended another vehicle while driving in heavy proximate cause of the resulting $3,400 in damages. There is no clear evidence
traffic. No one was injured, but there was $3,400 in of negligence per se provided.
damage to the other vehicle. Which one of the
following statements is correct regarding this accident?
Hilltop Auto Dealership (Hilltop) is insured by the Auto $80,000
Dealers Coverage Form (ADCF) with a $4 million limit Hilltop's insurer will pay $80,000 for this covered loss. The policy limit was 80%
for physical damage coverage on a nonreporting basis. ($4 million/$5 million) of the actual value at the time of the loss, so the insurer
The dealership experienced a fire loss that resulted in will only pay 80% of the loss. $100,000 x .80 = $80,000
$100,000 in damage to the dealer's covered autos. The
actual value of the inventory of covered autos at the
time of the loss was $5 million. How much will Hilltop's
ADCF insurer pay for this covered loss? Disregard any
deductibles that may apply.
A technician repairing auto damage must replace a Included operation.
body panel as well as the running light/turn signal An included operation is any operation completed in its entirety while another,
mounted within the panel. The replacement of the light concurrent, operation is performed.
assembly is called a(n)
One of the primary questions that must be answered in Bodily injury.
investigating an emotional injury claim is whether, under
the applicable policy, emotional distress is considered
a(n)
(Verified Answers) Study Guide (latest version verified for
accuracy) | 2025\2026 Latest!!
Leave the first rating
Save
Students also studied
Flashcard sets Study guides
Health Final Exam - NJ Accident and... AdjusterPro EXAM, comprehensive ... Comprehensive Guide to ACA, Heal... AR
Teacher 124 terms Teacher 166 terms Teacher 24 terms Te
zuriGlow Preview COSAVO1 Preview Samuel_Chris1 Preview
Terms in this set (50)
Conor is handling an auto claim involving the death of a A calculated value of the child's future services to the parents.
minor child in a state that recognizes the intrinsic value A calculated value of the child's future services to the parents. Intrinsic value of
of children. Conor's proposed settlement amount will children is the assumption that parents invest in children knowing that they will
include provide for them when they are older
Cristobal has several methods available to him as he Formula method involves a mathematical formula set by actuaries to set
evaluates the settlement range for his claim: reserves.
individual case method, roundtable technique, formula
method, and expert system. Which method should
Cristobal use if he is dealing with a minor soft tissue
claim and wants a simple approach to achieve an early,
mutually agreeable settlement?
Anna injured her back in a not-at-fault auto accident Was covered because it was an unavoidable consequence of the back injury.
and has a bodily injury claim with the other driver's An intervening problem is covered if it is an unavoidable consequence of the
insurance company. Later, she fell and her back injury first injury.
was aggravated. Her claims representative for the first
accident told her that the aggravation of her back injury
Some personal auto policies provide that someone Implied permission.
could reasonably expect to be allowed to use an Some policies provide for implied permission for the use of an insured's auto.
insured's vehicle even if they did not ask specifically,
such as a relative visiting from out of town. This is called
In determining coverage for emotional injury, a claims The term "harm" is potentially broader than the term "injury"
rep must understand applicable policy language. in determining coverage for emotional injury.
Which one of the following is correct?
, Mehmet was seriously injured in an automobile collision Pain and suffering can only be claimed if the decedent was conscious of the
and died after a stay in the hospital. His family is pain and suffering before dying.
bringing a survival action claim for medical expenses,
pain and suffering, loss of earnings, and automobile
repairs. Which one of the following claims will be
allowed only if the family can demonstrate that Mehmet
was conscious after the accident but before dying?
Claims reps can isolate specific coverage issues that Decision tree.
should be investigated to determine whether Claims reps can isolate specific coverage issues that should be investigated to
exclusions apply by using a series of yes-or-no determine whether exclusions apply by using a series of yes-or-no questions in
questions in the form of a the form of a decision tree.
Caitlin was involved in a multi-car accident on a The use of a hands-free device while driving can lead to a cognitive distraction.
highway. The claims representative for her insurance
company is making a case that distracted driving by
Mike, one of the other drivers involved in the accident,
was a contributing cause of the accident. The records
indicate that Mike was using a hands-free device at the
time of the accident. Which one of the following
statements is true regarding the use of a hands-free
device while driving?
Sean is an auto liability claims representative. He is All four elements of negligence exist in this accident. There was a duty owed to
working on a claim involving an insured driver who others to operate the vehicle safely, that duty was breached, and was the
rear-ended another vehicle while driving in heavy proximate cause of the resulting $3,400 in damages. There is no clear evidence
traffic. No one was injured, but there was $3,400 in of negligence per se provided.
damage to the other vehicle. Which one of the
following statements is correct regarding this accident?
Hilltop Auto Dealership (Hilltop) is insured by the Auto $80,000
Dealers Coverage Form (ADCF) with a $4 million limit Hilltop's insurer will pay $80,000 for this covered loss. The policy limit was 80%
for physical damage coverage on a nonreporting basis. ($4 million/$5 million) of the actual value at the time of the loss, so the insurer
The dealership experienced a fire loss that resulted in will only pay 80% of the loss. $100,000 x .80 = $80,000
$100,000 in damage to the dealer's covered autos. The
actual value of the inventory of covered autos at the
time of the loss was $5 million. How much will Hilltop's
ADCF insurer pay for this covered loss? Disregard any
deductibles that may apply.
A technician repairing auto damage must replace a Included operation.
body panel as well as the running light/turn signal An included operation is any operation completed in its entirety while another,
mounted within the panel. The replacement of the light concurrent, operation is performed.
assembly is called a(n)
One of the primary questions that must be answered in Bodily injury.
investigating an emotional injury claim is whether, under
the applicable policy, emotional distress is considered
a(n)
