AIC 30 EXAM MERGED WITH
CORRECT VERIFIED AND WELL
ANALYZED SOLUTIONS || ALREADY
GRADED A+ || 2026-2027 LATEST
UPDATE!!!
what are the two primary goals of the claims dept? - ANSWER-keep
insurers promise & help insurer reach profit goal
What are the insurers promise? - ANSWER-to uphold the contract
made on the policy (First or Third), and to protect the insured from
lawsuits in claims that are found wrong
What is the insurers promise in a property insurance policy? -
ANSWER-Pay for damages made by the claimant/policyholder to any
property if fits the policy.
,What is the insurers promise in liability insurance policy? - ANSWER-
pay for damages done to OTHERS (bodily injuries, property damage or
other)
When is the insurer responsible to pay first party claims? - ANSWER-
direct report from insured to insurer.
When is the insurer responsible to pay third party claims? - ANSWER-
made against the policyholder by someone to whom the policyholder
may be liable
By ensuring fair claim settlement, claims representatives prevent any
unnecessary increase in the cost of insurance and subsequent
reduction in the insurer's - ANSWER-underwriting profit
An insurance contract is designed to be all of the following in the
event of a claim, EXCEPT - ANSWER-A means to provide a profit to the
insured
Third Party Administrator (TPA) - ANSWER-An organization that
provides administrative services associated with risk financing and
insurance.
Independent Adjuster - ANSWER-An independent claim representative
who handles claims for insurers for a fee.
Producer - ANSWER-term "producer" includes agents, brokers, sales
representatives, and intermediaries who place insurance with insurers
Public Adjuster - ANSWER-An outside organization or person hired by
an insured to represent the insured in a claim in exchange for a fee.
,Loss adjustment expense (LAE) - ANSWER-The expense that an insurer
incurs to investigate, defend, and settle claims according to the terms
specified in the insurance policy.
Which one of the following involves making a choice between what is
lawful and what is unlawful? - ANSWER-legality
For insurers, ethical and professional conduct can help - ANSWER-
retain customers and attract investors
Ethics and professionalism are important for insurance professionals
because - ANSWER-Consumer regulations may define the minimum
expected ethical and professional standards.
Three ways good faith is established: - ANSWER-By satisfying
contractual duties and other promises
By maintaining insurers' credibility
By complying with legal duty
If the business of insurance is conducted ethically and professionally,
society can reap the benefits of insurance, which include - ANSWER-
support for credit
Most states require the licensing of - ANSWER-public adjusters
Some jurisdictions have found certain practices in claim handling to be
the unauthorized practice of law. An typical example is - ANSWER-
Providing direction on legal strategies
Ethical and professional conduct of claim representatives can benefit
consumers by - ANSWER-Encouraging fair treatment and prompt
payment.
, If the business of insurance is conducted ethically and professionally,
society can reap the benefits of insurance, which include - ANSWER-
the benefits of insurance include peace of mind, support for credit,
efficient use of resources, and reduction of social burdens.
Ethical and professional conduct of claim representatives can benefit
consumers by - ANSWER-Encouraging fair treatment and prompt
payment.
Ethics and professionalism are important for insurance professionals
because - ANSWER-Consumer regulations may define the minimum
expected ethical and professional standards.
Information gathered by claims representatives in handling claims -
ANSWER-May be protected by privacy laws.
All of the following represent instances of federal laws having an
effect on claim handling, EXCEPT: - ANSWER-Unfair claims settlement
practices acts
Most states require the licensing of - ANSWER-Public adjusters.
Some jurisdictions have found certain practices in claim handling to be
the unauthorized practice of law. An typical example is - ANSWER-
Providing direction on legal strategies.
A claim representative who believes in high quality claim practices
should - ANSWER-Keep in mind the perspectives of the claimants and
insureds.
When a severe hurricane comes ashore in the southeast, the wind and
water damage are extensive. Best Insurance Company's regional claim
office is overwhelmed and cannot keep up with the volume of claims.
CORRECT VERIFIED AND WELL
ANALYZED SOLUTIONS || ALREADY
GRADED A+ || 2026-2027 LATEST
UPDATE!!!
what are the two primary goals of the claims dept? - ANSWER-keep
insurers promise & help insurer reach profit goal
What are the insurers promise? - ANSWER-to uphold the contract
made on the policy (First or Third), and to protect the insured from
lawsuits in claims that are found wrong
What is the insurers promise in a property insurance policy? -
ANSWER-Pay for damages made by the claimant/policyholder to any
property if fits the policy.
,What is the insurers promise in liability insurance policy? - ANSWER-
pay for damages done to OTHERS (bodily injuries, property damage or
other)
When is the insurer responsible to pay first party claims? - ANSWER-
direct report from insured to insurer.
When is the insurer responsible to pay third party claims? - ANSWER-
made against the policyholder by someone to whom the policyholder
may be liable
By ensuring fair claim settlement, claims representatives prevent any
unnecessary increase in the cost of insurance and subsequent
reduction in the insurer's - ANSWER-underwriting profit
An insurance contract is designed to be all of the following in the
event of a claim, EXCEPT - ANSWER-A means to provide a profit to the
insured
Third Party Administrator (TPA) - ANSWER-An organization that
provides administrative services associated with risk financing and
insurance.
Independent Adjuster - ANSWER-An independent claim representative
who handles claims for insurers for a fee.
Producer - ANSWER-term "producer" includes agents, brokers, sales
representatives, and intermediaries who place insurance with insurers
Public Adjuster - ANSWER-An outside organization or person hired by
an insured to represent the insured in a claim in exchange for a fee.
,Loss adjustment expense (LAE) - ANSWER-The expense that an insurer
incurs to investigate, defend, and settle claims according to the terms
specified in the insurance policy.
Which one of the following involves making a choice between what is
lawful and what is unlawful? - ANSWER-legality
For insurers, ethical and professional conduct can help - ANSWER-
retain customers and attract investors
Ethics and professionalism are important for insurance professionals
because - ANSWER-Consumer regulations may define the minimum
expected ethical and professional standards.
Three ways good faith is established: - ANSWER-By satisfying
contractual duties and other promises
By maintaining insurers' credibility
By complying with legal duty
If the business of insurance is conducted ethically and professionally,
society can reap the benefits of insurance, which include - ANSWER-
support for credit
Most states require the licensing of - ANSWER-public adjusters
Some jurisdictions have found certain practices in claim handling to be
the unauthorized practice of law. An typical example is - ANSWER-
Providing direction on legal strategies
Ethical and professional conduct of claim representatives can benefit
consumers by - ANSWER-Encouraging fair treatment and prompt
payment.
, If the business of insurance is conducted ethically and professionally,
society can reap the benefits of insurance, which include - ANSWER-
the benefits of insurance include peace of mind, support for credit,
efficient use of resources, and reduction of social burdens.
Ethical and professional conduct of claim representatives can benefit
consumers by - ANSWER-Encouraging fair treatment and prompt
payment.
Ethics and professionalism are important for insurance professionals
because - ANSWER-Consumer regulations may define the minimum
expected ethical and professional standards.
Information gathered by claims representatives in handling claims -
ANSWER-May be protected by privacy laws.
All of the following represent instances of federal laws having an
effect on claim handling, EXCEPT: - ANSWER-Unfair claims settlement
practices acts
Most states require the licensing of - ANSWER-Public adjusters.
Some jurisdictions have found certain practices in claim handling to be
the unauthorized practice of law. An typical example is - ANSWER-
Providing direction on legal strategies.
A claim representative who believes in high quality claim practices
should - ANSWER-Keep in mind the perspectives of the claimants and
insureds.
When a severe hurricane comes ashore in the southeast, the wind and
water damage are extensive. Best Insurance Company's regional claim
office is overwhelmed and cannot keep up with the volume of claims.
