AIC 300 Verified Exam Questions and Answers Latest update
2026/2027
Question:
and
Answer:
Question:
Indemnify
Answer:
To restore a party who has sustained a loss to the same financial position that party held before the
loss occurred.
Question:
Third-party administrator (TPA)
Answer:
An organization that provides administrative services associated with risk financing and insurance.
Question:
Claims representative
Answer:
A person responsible for investigating, evaluating, and settling claims.
Question:
Public adjuster
Answer:
An outside organization or person hired by an insured to represent the insured in a claim in exchange
for a fee.
Question:
Premium audit
Answer:
Methodical examination of a policyholder's operations, records, and books of account to determine the
actual exposure units and premium for insurance coverages already provided.
,Question:
Quantitative Audit Factors
Answer:
Timeliness of reports, reserving and payments
Question:
Qualitative Audit Factors
Answer:
Realistic reserving, accurate evaluation of insured's liability and follow-up on subrogation opportunity
Question:
Loss ratio
Answer:
A ratio that measures losses and loss adjustment expenses against earned premiums and that reflects
the percentage of premiums being consumed by losses.
Question:
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. Aaron works for a multi-line insurer. He works with insurance
producers and applicants to evaluate new business submissions and conduct renewal underwriting.
Aaron is a
A. Personal lines underwriter.
B. Line underwriter.
C. Staff underwriter.
Question:
D. Public underwriter.
Answer:
B. Line underwriter.
This describes the duties of a line underwriter, rather than a staff underwriter. There is not enough
information to determine which line of business is being written. A public underwriter does not exist.
Line underwriters evaluate new submissions and perform renewal underwriting, usually by working
directly with insurance producers and applicants. Staff underwriters, meanwhile, manage risk
selection by working with line underwriters and coordinating decisions about products, pricing and
guidelines.
,Question:
Hugo is conducting an audit of a branch office claims operation. He is evaluating timeliness of reports,
number of files opened, proper releases taken, and accuracy of data entry. Which one of Hugo's
metrics is a qualitative audit factor?
A. Number of files opened
B. Timeliness of reports
C. Accuracy of data entry
D. Proper releases taken
Answer:
D. Proper releases taken
Question:
Which one of the following statements regarding third-party administrators (TPAs) is most accurate?
A. TPAs handle claims, keep claims records, and perform statistical analyses.
B. TPAs are generally found in an insurer's claims department.
C. TPAs are typically used by businesses that have chosen not to self-insure.
D. TPAs are employed only by independent adjusting firms.
Answer:
A.
TPAs handle claims, keep claims records, and perform statistical analyses.
Question:
Steps of Making an Initial Claims Assessment
Answer:
Acknowledging and Assigning the Claim Identifying the Policy Contacting the Insured or the
Insured's Representative
Question:
How do recorded statements and examinations under oath differ?
Answer:
An examination under oath is more formal than a recorded statement. Recorded statements are often
taken by claims representatives, typically by telephone. Examinations under oath are usually
performed by an attorney for the insurer at the insurer's office or a court reporter's office.
Question:
Effective statements exhibit these qualities
Answer:
Coherence—The statement follows a logical sequence. Completeness—The statement is thorough.
Objectivity—The statement contains facts relevant to the loss expressed in the interviewee's own
words.
, Question:
Seven-Part Method
Answer:
1. Permission and introduction—date, time,
and location of the interview, names of the parties involved in the interview, and an affirmation from
the interviewee that the interview is given with permission
Question:
2. Identification—identifying information about the person being interviewed, such as name,
address, phone number, and driver's license number
3. Setting—answers to questions such as who was involved in the loss, what was involved in the
loss, when the loss occurred, where the loss occurred, and why the loss occurred
4. Incident—a step-by-step description of how the loss occurred
5. Post incident injuries/damages—description of the property damage and bodily injuries to
individuals
6. Miscellaneous—any information the interviewee wants to add
7. Conclusion—reaffirmation that the statement was taken with permission
Reserve
Answer:
The amount the insurer estimates and sets aside to pay on an existing claim.
Question:
Individual case method
Answer:
a method of setting reserves based on the claim's circumstances and the claim representative's
experience in handling similar claims
Question:
Roundtable method
Answer:
A method of setting reserves by using the consensus of two or more claim personnel who have
independently evaluated the claim file
Question:
Average value method
Answer:
A case reserving method that establishes a predetermined dollar amount of reserve for each claim as it
is reported.
2026/2027
Question:
and
Answer:
Question:
Indemnify
Answer:
To restore a party who has sustained a loss to the same financial position that party held before the
loss occurred.
Question:
Third-party administrator (TPA)
Answer:
An organization that provides administrative services associated with risk financing and insurance.
Question:
Claims representative
Answer:
A person responsible for investigating, evaluating, and settling claims.
Question:
Public adjuster
Answer:
An outside organization or person hired by an insured to represent the insured in a claim in exchange
for a fee.
Question:
Premium audit
Answer:
Methodical examination of a policyholder's operations, records, and books of account to determine the
actual exposure units and premium for insurance coverages already provided.
,Question:
Quantitative Audit Factors
Answer:
Timeliness of reports, reserving and payments
Question:
Qualitative Audit Factors
Answer:
Realistic reserving, accurate evaluation of insured's liability and follow-up on subrogation opportunity
Question:
Loss ratio
Answer:
A ratio that measures losses and loss adjustment expenses against earned premiums and that reflects
the percentage of premiums being consumed by losses.
Question:
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. Aaron works for a multi-line insurer. He works with insurance
producers and applicants to evaluate new business submissions and conduct renewal underwriting.
Aaron is a
A. Personal lines underwriter.
B. Line underwriter.
C. Staff underwriter.
Question:
D. Public underwriter.
Answer:
B. Line underwriter.
This describes the duties of a line underwriter, rather than a staff underwriter. There is not enough
information to determine which line of business is being written. A public underwriter does not exist.
Line underwriters evaluate new submissions and perform renewal underwriting, usually by working
directly with insurance producers and applicants. Staff underwriters, meanwhile, manage risk
selection by working with line underwriters and coordinating decisions about products, pricing and
guidelines.
,Question:
Hugo is conducting an audit of a branch office claims operation. He is evaluating timeliness of reports,
number of files opened, proper releases taken, and accuracy of data entry. Which one of Hugo's
metrics is a qualitative audit factor?
A. Number of files opened
B. Timeliness of reports
C. Accuracy of data entry
D. Proper releases taken
Answer:
D. Proper releases taken
Question:
Which one of the following statements regarding third-party administrators (TPAs) is most accurate?
A. TPAs handle claims, keep claims records, and perform statistical analyses.
B. TPAs are generally found in an insurer's claims department.
C. TPAs are typically used by businesses that have chosen not to self-insure.
D. TPAs are employed only by independent adjusting firms.
Answer:
A.
TPAs handle claims, keep claims records, and perform statistical analyses.
Question:
Steps of Making an Initial Claims Assessment
Answer:
Acknowledging and Assigning the Claim Identifying the Policy Contacting the Insured or the
Insured's Representative
Question:
How do recorded statements and examinations under oath differ?
Answer:
An examination under oath is more formal than a recorded statement. Recorded statements are often
taken by claims representatives, typically by telephone. Examinations under oath are usually
performed by an attorney for the insurer at the insurer's office or a court reporter's office.
Question:
Effective statements exhibit these qualities
Answer:
Coherence—The statement follows a logical sequence. Completeness—The statement is thorough.
Objectivity—The statement contains facts relevant to the loss expressed in the interviewee's own
words.
, Question:
Seven-Part Method
Answer:
1. Permission and introduction—date, time,
and location of the interview, names of the parties involved in the interview, and an affirmation from
the interviewee that the interview is given with permission
Question:
2. Identification—identifying information about the person being interviewed, such as name,
address, phone number, and driver's license number
3. Setting—answers to questions such as who was involved in the loss, what was involved in the
loss, when the loss occurred, where the loss occurred, and why the loss occurred
4. Incident—a step-by-step description of how the loss occurred
5. Post incident injuries/damages—description of the property damage and bodily injuries to
individuals
6. Miscellaneous—any information the interviewee wants to add
7. Conclusion—reaffirmation that the statement was taken with permission
Reserve
Answer:
The amount the insurer estimates and sets aside to pay on an existing claim.
Question:
Individual case method
Answer:
a method of setting reserves based on the claim's circumstances and the claim representative's
experience in handling similar claims
Question:
Roundtable method
Answer:
A method of setting reserves by using the consensus of two or more claim personnel who have
independently evaluated the claim file
Question:
Average value method
Answer:
A case reserving method that establishes a predetermined dollar amount of reserve for each claim as it
is reported.
