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:
Producer
Answer:
Any of several kinds of insurance personnel who place insurance and surety business with insurers and
who represent either insurers or insureds, or both.
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:
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.
Question:
First notice of loss (FNOL)
Answer:
The initial report notifying the insurer of a claim.
Question:
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 claims representative's
experience in handling similar claims
Question:
Roundtable method
Answer:
A method of setting reserves by using the consensus of two or more claims personnel who have
independently evaluated the claims file.
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:
Producer
Answer:
Any of several kinds of insurance personnel who place insurance and surety business with insurers and
who represent either insurers or insureds, or both.
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:
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.
Question:
First notice of loss (FNOL)
Answer:
The initial report notifying the insurer of a claim.
Question:
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 claims representative's
experience in handling similar claims
Question:
Roundtable method
Answer:
A method of setting reserves by using the consensus of two or more claims personnel who have
independently evaluated the claims file.
