AIC 300 CLAIMS IN AN EVOLVING WORLD
TERMINAL CERTIFICATION EVALUATION
COMPLETE QUESTIONS WITH FULL
SOLUTION ALREADY PASSED
⩥ Which one of the following methods of establishing case reserves is
used most often when there are small variations in loss size for a
particular type of claim?
Select one:
A. Average value method
B. Individual case method
C. Roundtable method
D. Formula method.
Answer: The average value method is used most often when there are
small variations in loss size for a particular type of claim, and when
claims can be concluded quickly.
⩥ Charlotte is handling a new claim and she has set the initial reserves at
$1,000,000. She has been asked to complete an internal report
summarizing all the file status information for distribution to
management and updated as more information is received. The report
Charlotte is completing is most likely a
Select one:
A. Large loss report.
,B. Summarized report.
C. Preliminary report.
D. Status report..
Answer: Large loss report. Most insurers have guidelines outlining when
and under what circumstances large loss reports should be prepared.
⩥ In the process of assigning a claim, an internal claims handler will
often transfer information to the insurer's standard form, called the.
Answer: First notice of loss (FNOL) form
⩥ One way to ensure that the coverage analysis considers all component
parts of a policy is to.
Answer: review the claim information with specific questions in mind.
⩥ What is the DICE method.
Answer: This method entails reviewing each of the major parts of a
standard policy—declarations, insuring agreement, conditions, and
exclusions—in turn and noting how they apply to the cause of loss in
question.
⩥ when can it be complex whether the person is covered in an insureds
policy.
Answer: when they are contractors and subcontractors
,⩥ The date and time of loss occurrence usually determines.
Answer: whether the loss occurred during the policy period.
⩥ Claims made.
Answer: covers claims that were made during the policy year but may
have occurred in a different time but in a covered time frame
⩥ Claims made is usually for what type of policies.
Answer: environmental, medical malpractice, D&O
⩥ most covered locations of loss are.
Answer: USA, its territories, Peurto Rico and Canada
⩥ Exclusions.
Answer: Bars coverage for something even if other conditions are met
⩥ Endorsements.
Answer: grant coverage that would otherwise to excluded, add or delete
insureds, and other modifications
⩥ Direct loss.
Answer: A reduction in the value of property that results directly and
often immediately from damage to that property.
, ⩥ Indirect loss.
Answer: A loss that arises as a result of damage to property, other than
the direct loss to the property.
⩥ Pro rata contribution.
Answer: An approach to other insurance by which the insurers
contribute to the loss payment in the proportion to which they contribute
to the total amount of coverage purchased (their limits of liability).
⩥ For property damage claims, the amount of loss payable is usually
limited to.
Answer: physical damage to, destruction of, or loss of use of tangible
property and based on the cost to repair or replace the damaged property
with that of like kind and quality. Indirect losses like BI may also be
payable
⩥ Insurable interest.
Answer: An interest in the subject of an insurance policy that is not
unduly remote and that would cause the interested party to suffer
financial loss if an insured event occurred.
⩥ Insurable interest on a property does not guarantee.
Answer: Coverage. might not be listed as an insured on dec page
TERMINAL CERTIFICATION EVALUATION
COMPLETE QUESTIONS WITH FULL
SOLUTION ALREADY PASSED
⩥ Which one of the following methods of establishing case reserves is
used most often when there are small variations in loss size for a
particular type of claim?
Select one:
A. Average value method
B. Individual case method
C. Roundtable method
D. Formula method.
Answer: The average value method is used most often when there are
small variations in loss size for a particular type of claim, and when
claims can be concluded quickly.
⩥ Charlotte is handling a new claim and she has set the initial reserves at
$1,000,000. She has been asked to complete an internal report
summarizing all the file status information for distribution to
management and updated as more information is received. The report
Charlotte is completing is most likely a
Select one:
A. Large loss report.
,B. Summarized report.
C. Preliminary report.
D. Status report..
Answer: Large loss report. Most insurers have guidelines outlining when
and under what circumstances large loss reports should be prepared.
⩥ In the process of assigning a claim, an internal claims handler will
often transfer information to the insurer's standard form, called the.
Answer: First notice of loss (FNOL) form
⩥ One way to ensure that the coverage analysis considers all component
parts of a policy is to.
Answer: review the claim information with specific questions in mind.
⩥ What is the DICE method.
Answer: This method entails reviewing each of the major parts of a
standard policy—declarations, insuring agreement, conditions, and
exclusions—in turn and noting how they apply to the cause of loss in
question.
⩥ when can it be complex whether the person is covered in an insureds
policy.
Answer: when they are contractors and subcontractors
,⩥ The date and time of loss occurrence usually determines.
Answer: whether the loss occurred during the policy period.
⩥ Claims made.
Answer: covers claims that were made during the policy year but may
have occurred in a different time but in a covered time frame
⩥ Claims made is usually for what type of policies.
Answer: environmental, medical malpractice, D&O
⩥ most covered locations of loss are.
Answer: USA, its territories, Peurto Rico and Canada
⩥ Exclusions.
Answer: Bars coverage for something even if other conditions are met
⩥ Endorsements.
Answer: grant coverage that would otherwise to excluded, add or delete
insureds, and other modifications
⩥ Direct loss.
Answer: A reduction in the value of property that results directly and
often immediately from damage to that property.
, ⩥ Indirect loss.
Answer: A loss that arises as a result of damage to property, other than
the direct loss to the property.
⩥ Pro rata contribution.
Answer: An approach to other insurance by which the insurers
contribute to the loss payment in the proportion to which they contribute
to the total amount of coverage purchased (their limits of liability).
⩥ For property damage claims, the amount of loss payable is usually
limited to.
Answer: physical damage to, destruction of, or loss of use of tangible
property and based on the cost to repair or replace the damaged property
with that of like kind and quality. Indirect losses like BI may also be
payable
⩥ Insurable interest.
Answer: An interest in the subject of an insurance policy that is not
unduly remote and that would cause the interested party to suffer
financial loss if an insured event occurred.
⩥ Insurable interest on a property does not guarantee.
Answer: Coverage. might not be listed as an insured on dec page
