AIC 302 FINAL EXAM COMPLETE TEST BANK 200 CERTIFIED
QUESTIONS WITH DETAILED ANSWERS & EXPERT RATIONALES
BASED ON AIC 301/302 CURRICULUM | ACTUAL EXAM
FORMAT | VERIFIED A+ CONTENT
1. Chelsea is injured in an accident caused by an uninsured motorist
and signs a UM release. What is her primary obligation to her insurer?
A) She must file a police report within 24 hours
B) She must cooperate with her insurer in pursuing subrogation
C) She must provide a recorded statement within 48 hours
D) She must obtain her own legal counsel
Correct Answer: B
Rationale: A UM release requires the insured to cooperate with the
insurer in pursuing subrogation against the uninsured motorist.
2. Larry owns two trucks and works as an owner-operator. He was
hired by Carrier A to transport goods from Texas to Maine. Rather
than bobtailing back, Larry entered into a trip lease to haul a return
load for Carrier Z. Which provides liability coverage for Larry's
backhaul trip?
A) Carrier A's liability policy
B) Larry's personal auto policy
,C) Carrier Z's MCS-90 endorsement
D) Carrier Z's MCS-90
Correct Answer: D
Rationale: Carrier Z's MCS-90 would provide the liability coverage for
Larry's backhaul trip under the trip lease arrangement.
3. Carla is evaluating a bodily injury claim and considers the claimant's
occupation, wages, age, expected work life, life expectancy, education,
training, and previous job history. What type of damages is Carla
evaluating?
A) Lost wages
B) Diminished earning capacity
C) Pain and suffering
D) Medical expenses
Correct Answer: B
Rationale: Diminished earning capacity occurs when permanent injuries
prevent claimants from working in the same capacity as before the loss.
4. Jose was injured in an auto accident caused by the other driver. His
injuries were covered by his medical insurance. At trial, the court did
not allow the insurer to reduce Jose's award by the amount his
medical insurance paid. On what basis was this decision made?
A) Subrogation rule
B) Collateral source rule
C) Made-whole doctrine
D) Comparative negligence
,Correct Answer: B
Rationale: The collateral source rule bars the introduction of evidence
that a claimant has other sources of recovery.
5. Pete's car is stopped at a red light behind Cindy's car. Tony fails to
stop, and his car hits Pete's car, which is then pushed into Cindy's car.
Cindy is injured and all cars are damaged. Under joint and several
liability, which statement is correct?
A) Tony and Pete are joint tortfeasors
B) Tony, Pete, and Cindy are joint tortfeasors
C) Tony is the lone tortfeasor
D) Pete is solely liable for Cindy's injuries
Correct Answer: C
Rationale: There are no joint tortfeasors because Tony's negligence is
the sole proximate cause; Pete is not negligent.
6. When assigned a theft claim, what should the claims rep do
regarding the insured?
A) Immediately declare the vehicle a total loss
B) Take a recorded statement regarding the vehicle and loss
circumstances
C) Send a written demand for proof of loss
D) Notify the police and wait for their report
Correct Answer: B
Rationale: The claims rep should take a recorded statement regarding
the vehicle and loss circumstances to consider all possibilities.
, 7. In a theft claim, the recorded statement should include all of the
following EXCEPT:
A) When and where the vehicle was acquired
B) VIN and financing details
C) Recent repairs
D) The insured's credit score
Correct Answer: D
Rationale: The statement should include acquisition info, VIN, financing,
recent repairs, vehicle condition, options, and mileage, but not credit
score.
8. When a stolen vehicle is recovered, what should the claims rep do?
A) Immediately pay the insured the full ACV
B) Have the vehicle inspected and any damage appraised
C) Return the vehicle to the insured without inspection
D) Sell the vehicle at auction
Correct Answer: B
Rationale: The claims rep should have the recovered vehicle inspected
and any damage appraised.
9. Most insurers will declare a stolen vehicle a total loss if:
A) It is recovered within 48 hours
B) It is not recovered within a designated period of time
C) The insured requests it
D) The police close the case
QUESTIONS WITH DETAILED ANSWERS & EXPERT RATIONALES
BASED ON AIC 301/302 CURRICULUM | ACTUAL EXAM
FORMAT | VERIFIED A+ CONTENT
1. Chelsea is injured in an accident caused by an uninsured motorist
and signs a UM release. What is her primary obligation to her insurer?
A) She must file a police report within 24 hours
B) She must cooperate with her insurer in pursuing subrogation
C) She must provide a recorded statement within 48 hours
D) She must obtain her own legal counsel
Correct Answer: B
Rationale: A UM release requires the insured to cooperate with the
insurer in pursuing subrogation against the uninsured motorist.
2. Larry owns two trucks and works as an owner-operator. He was
hired by Carrier A to transport goods from Texas to Maine. Rather
than bobtailing back, Larry entered into a trip lease to haul a return
load for Carrier Z. Which provides liability coverage for Larry's
backhaul trip?
A) Carrier A's liability policy
B) Larry's personal auto policy
,C) Carrier Z's MCS-90 endorsement
D) Carrier Z's MCS-90
Correct Answer: D
Rationale: Carrier Z's MCS-90 would provide the liability coverage for
Larry's backhaul trip under the trip lease arrangement.
3. Carla is evaluating a bodily injury claim and considers the claimant's
occupation, wages, age, expected work life, life expectancy, education,
training, and previous job history. What type of damages is Carla
evaluating?
A) Lost wages
B) Diminished earning capacity
C) Pain and suffering
D) Medical expenses
Correct Answer: B
Rationale: Diminished earning capacity occurs when permanent injuries
prevent claimants from working in the same capacity as before the loss.
4. Jose was injured in an auto accident caused by the other driver. His
injuries were covered by his medical insurance. At trial, the court did
not allow the insurer to reduce Jose's award by the amount his
medical insurance paid. On what basis was this decision made?
A) Subrogation rule
B) Collateral source rule
C) Made-whole doctrine
D) Comparative negligence
,Correct Answer: B
Rationale: The collateral source rule bars the introduction of evidence
that a claimant has other sources of recovery.
5. Pete's car is stopped at a red light behind Cindy's car. Tony fails to
stop, and his car hits Pete's car, which is then pushed into Cindy's car.
Cindy is injured and all cars are damaged. Under joint and several
liability, which statement is correct?
A) Tony and Pete are joint tortfeasors
B) Tony, Pete, and Cindy are joint tortfeasors
C) Tony is the lone tortfeasor
D) Pete is solely liable for Cindy's injuries
Correct Answer: C
Rationale: There are no joint tortfeasors because Tony's negligence is
the sole proximate cause; Pete is not negligent.
6. When assigned a theft claim, what should the claims rep do
regarding the insured?
A) Immediately declare the vehicle a total loss
B) Take a recorded statement regarding the vehicle and loss
circumstances
C) Send a written demand for proof of loss
D) Notify the police and wait for their report
Correct Answer: B
Rationale: The claims rep should take a recorded statement regarding
the vehicle and loss circumstances to consider all possibilities.
, 7. In a theft claim, the recorded statement should include all of the
following EXCEPT:
A) When and where the vehicle was acquired
B) VIN and financing details
C) Recent repairs
D) The insured's credit score
Correct Answer: D
Rationale: The statement should include acquisition info, VIN, financing,
recent repairs, vehicle condition, options, and mileage, but not credit
score.
8. When a stolen vehicle is recovered, what should the claims rep do?
A) Immediately pay the insured the full ACV
B) Have the vehicle inspected and any damage appraised
C) Return the vehicle to the insured without inspection
D) Sell the vehicle at auction
Correct Answer: B
Rationale: The claims rep should have the recovered vehicle inspected
and any damage appraised.
9. Most insurers will declare a stolen vehicle a total loss if:
A) It is recovered within 48 hours
B) It is not recovered within a designated period of time
C) The insured requests it
D) The police close the case
