AIC 300 CLAIMS IN AN EVOLVING WORLD
COMPREHENSIVE EXAM 2026 FULL
QUESTIONS AND CORRECT ANSWERS
ALREADY PASSED
◉ Formula method.
Answer: A method of setting claim reserves by using a mathematical
formula.
◉ Expert system method.
Answer: A method of setting reserves with a software application
that estimates losses and loss adjustment expenses.
◉ Carolina is a claim representative handling a liability claim. She is
speaking to the claimant over the phone and has informed him that
his statements must be true under penalty of perjury. When
completed, she sent a transcription of the conversation to the
claimant for him to sign before a notary. Carolina has taken a(n).
Answer: Recorded statement
◉ The insurer's case reserves..
,Answer: To determine whether an insurer typically underreserves
or overreserves claims, actuaries compare the insurer's paid losses
to
◉ 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).
◉ Whom should a claims rep notify if a claim's losses will exceed the
policy's limits?.
Answer: If a loss will likely exceed policy limits, a claims rep should
notify the insured, as well as a reinsurer for the insurer or an excess
insurer for the insured.
, ◉ 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.
◉ Punitive damages (exemplary damages).
Answer: A payment awarded by a court to punish a defendant for a
reckless, malicious, or deceitful act to deter similar conduct; the
award need not bear any relation to a party's actual damages.
◉ Compensatory damages.
Answer: A payment awarded by a court to reimburse a victim for
actual harm.
◉ Special damages.
Answer: A form of compensatory damages that awards a sum of
money for specific, identifiable expenses associated with the injured
person's loss, such as medical expenses or lost wages.
◉ General damages.
Answer: A monetary award to compensate a victim for losses, such
as pain and suffering, that do not involve specific, measurable
expenses.
COMPREHENSIVE EXAM 2026 FULL
QUESTIONS AND CORRECT ANSWERS
ALREADY PASSED
◉ Formula method.
Answer: A method of setting claim reserves by using a mathematical
formula.
◉ Expert system method.
Answer: A method of setting reserves with a software application
that estimates losses and loss adjustment expenses.
◉ Carolina is a claim representative handling a liability claim. She is
speaking to the claimant over the phone and has informed him that
his statements must be true under penalty of perjury. When
completed, she sent a transcription of the conversation to the
claimant for him to sign before a notary. Carolina has taken a(n).
Answer: Recorded statement
◉ The insurer's case reserves..
,Answer: To determine whether an insurer typically underreserves
or overreserves claims, actuaries compare the insurer's paid losses
to
◉ 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).
◉ Whom should a claims rep notify if a claim's losses will exceed the
policy's limits?.
Answer: If a loss will likely exceed policy limits, a claims rep should
notify the insured, as well as a reinsurer for the insurer or an excess
insurer for the insured.
, ◉ 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.
◉ Punitive damages (exemplary damages).
Answer: A payment awarded by a court to punish a defendant for a
reckless, malicious, or deceitful act to deter similar conduct; the
award need not bear any relation to a party's actual damages.
◉ Compensatory damages.
Answer: A payment awarded by a court to reimburse a victim for
actual harm.
◉ Special damages.
Answer: A form of compensatory damages that awards a sum of
money for specific, identifiable expenses associated with the injured
person's loss, such as medical expenses or lost wages.
◉ General damages.
Answer: A monetary award to compensate a victim for losses, such
as pain and suffering, that do not involve specific, measurable
expenses.
