AIC 302 CORE REVIEW ANSWERS AND QUESTIONS
SET A+
✔✔Laura was injured in an auto accident due to the fault of the other driver. Her injury
will involve permanent impairment and will decrease her opportunity to earn a living.
She has incurred medical expenses and will continue to experience pain and suffering.
Which one of Laura's damages is considered a natural and necessary result of her
bodily injury? - ✔✔Pain and suffering are considered a "natural and necessary" result of
a claimant's bodily injury. A claimant is entitled to recover for pain and suffering from an
injury caused by the tortfeasor.
✔✔Aaron is a claims representative who has completed an investigation of a bodily
injury claim. Throughout the process, he gathered injury information and documents;
monitored and updated the plan; assessed treatment, disability, and impairment; and
analyzed records and reports. The first step in Aaron's investigation was to - ✔✔Gather
injury information and documents. This is the first of four steps in the bodily injury
investigation process.
✔✔Which one of the following best defines an advance payment? - ✔✔A partial claim
payment issued without obtaining a signed release.
An advance payment is a partial claim payment issued without obtaining a signed
release, usually for the purpose of helping the claimant to cover immediate expenses.
✔✔Juan is calculating a settlement in an auto liability claim and is determining a
reasonable estimate of the damages the claimant is likely to be able to prove. In
estimating the initial probable verdict range, Juan bases his calculations - ✔✔Solely on
provable damages without considering liability or other variables. The initial probable
verdict range is based solely on provable damages, without considering liability of other
variables, such as characteristics of the insured or claimant or venue of the case.
✔✔Fox Auto Dealership (Fox) is insured under the Auto Dealers Coverage Form
(ADCF). Section III - Acts, Errors, or Omissions Liability Coverage of the ADCF would
provide coverage for damages resulting from which one of the following? - ✔✔The sale
, of an auto that was later discovered to have a defective title would be covered under
Section III - Acts, Errors, or Omissions Liability Coverage of the ADCF.
✔✔Cassidy was involved in an intersectional collision with another vehicle. Kevin, the
driver of the other vehicle, has filed a suit against Cassidy for medical injuries and
damages to his car. He claims that Cassidy struck his vehicle after failing to stop at a
stop sign. Which one of the following parts of Cassidy's personal auto policy (PAP)
would provide her with coverage for this suit? - ✔✔Part A--Liability provides Cassidy
with coverage from suits for bodily injury and property damages arising out of her
operation of the vehicle.
✔✔In investigating an auto physical damage claim, Howard determines that the
estimate for repairs exceeds the vehicle's actual cash value less its salvage value. This
results in - ✔✔A constructive total loss occurs when the loss estimate equals or
exceeds the vehicle's actual cash value (ACV) less its salvage value.
✔✔Fernanda is a defense attorney for an insurer. She is working on a claim in which
the claimant was injured in an accident and is claiming to have depression and anxiety
as a result. Fernanda was able to uncover records of the claimant's treatment for
depression and anxiety several years before the accident. Fernanda's defense should
be that - ✔✔The condition existed before the injury. In order for a psychological injury to
be covered, it must be causally related to the physical injury.
✔✔Diminished value auto claims generally involve - ✔✔Autos that, although properly
repaired, may not be worth as much as comparable autos due to their accident history.
✔✔In some situations of overlapping coverage, each insurer pays the proportion of the
claim that its limit bears. This is called - ✔✔In pro rata contribution, each insurer pays
the proportion of the claim that its limit bears to the total of all applicable insurance.
✔✔Ciara is a claims rep investigating an automotive damage claim. In the course of her
investigation, she begins to suspect fraud. Which one of the following actions should
she take? - ✔✔Engage the special investigation unit (SIU)
If fraud is suspected, the claims rep should engage the special investigation unit (SIU).
✔✔In a partial auto physical damage loss, the damage can be repaired without -
✔✔Exceeding the value of the auto.
In a partial auto physical damage loss, the damage can be repaired without exceeding
the value of the auto.
✔✔The hospital that treated Dante following a car accident notifies his insurer of a lien
on the claim for medical services rendered. Having been formally communicated to the
insurer, the lien is now known as - ✔✔A perfected lien.
SET A+
✔✔Laura was injured in an auto accident due to the fault of the other driver. Her injury
will involve permanent impairment and will decrease her opportunity to earn a living.
She has incurred medical expenses and will continue to experience pain and suffering.
Which one of Laura's damages is considered a natural and necessary result of her
bodily injury? - ✔✔Pain and suffering are considered a "natural and necessary" result of
a claimant's bodily injury. A claimant is entitled to recover for pain and suffering from an
injury caused by the tortfeasor.
✔✔Aaron is a claims representative who has completed an investigation of a bodily
injury claim. Throughout the process, he gathered injury information and documents;
monitored and updated the plan; assessed treatment, disability, and impairment; and
analyzed records and reports. The first step in Aaron's investigation was to - ✔✔Gather
injury information and documents. This is the first of four steps in the bodily injury
investigation process.
✔✔Which one of the following best defines an advance payment? - ✔✔A partial claim
payment issued without obtaining a signed release.
An advance payment is a partial claim payment issued without obtaining a signed
release, usually for the purpose of helping the claimant to cover immediate expenses.
✔✔Juan is calculating a settlement in an auto liability claim and is determining a
reasonable estimate of the damages the claimant is likely to be able to prove. In
estimating the initial probable verdict range, Juan bases his calculations - ✔✔Solely on
provable damages without considering liability or other variables. The initial probable
verdict range is based solely on provable damages, without considering liability of other
variables, such as characteristics of the insured or claimant or venue of the case.
✔✔Fox Auto Dealership (Fox) is insured under the Auto Dealers Coverage Form
(ADCF). Section III - Acts, Errors, or Omissions Liability Coverage of the ADCF would
provide coverage for damages resulting from which one of the following? - ✔✔The sale
, of an auto that was later discovered to have a defective title would be covered under
Section III - Acts, Errors, or Omissions Liability Coverage of the ADCF.
✔✔Cassidy was involved in an intersectional collision with another vehicle. Kevin, the
driver of the other vehicle, has filed a suit against Cassidy for medical injuries and
damages to his car. He claims that Cassidy struck his vehicle after failing to stop at a
stop sign. Which one of the following parts of Cassidy's personal auto policy (PAP)
would provide her with coverage for this suit? - ✔✔Part A--Liability provides Cassidy
with coverage from suits for bodily injury and property damages arising out of her
operation of the vehicle.
✔✔In investigating an auto physical damage claim, Howard determines that the
estimate for repairs exceeds the vehicle's actual cash value less its salvage value. This
results in - ✔✔A constructive total loss occurs when the loss estimate equals or
exceeds the vehicle's actual cash value (ACV) less its salvage value.
✔✔Fernanda is a defense attorney for an insurer. She is working on a claim in which
the claimant was injured in an accident and is claiming to have depression and anxiety
as a result. Fernanda was able to uncover records of the claimant's treatment for
depression and anxiety several years before the accident. Fernanda's defense should
be that - ✔✔The condition existed before the injury. In order for a psychological injury to
be covered, it must be causally related to the physical injury.
✔✔Diminished value auto claims generally involve - ✔✔Autos that, although properly
repaired, may not be worth as much as comparable autos due to their accident history.
✔✔In some situations of overlapping coverage, each insurer pays the proportion of the
claim that its limit bears. This is called - ✔✔In pro rata contribution, each insurer pays
the proportion of the claim that its limit bears to the total of all applicable insurance.
✔✔Ciara is a claims rep investigating an automotive damage claim. In the course of her
investigation, she begins to suspect fraud. Which one of the following actions should
she take? - ✔✔Engage the special investigation unit (SIU)
If fraud is suspected, the claims rep should engage the special investigation unit (SIU).
✔✔In a partial auto physical damage loss, the damage can be repaired without -
✔✔Exceeding the value of the auto.
In a partial auto physical damage loss, the damage can be repaired without exceeding
the value of the auto.
✔✔The hospital that treated Dante following a car accident notifies his insurer of a lien
on the claim for medical services rendered. Having been formally communicated to the
insurer, the lien is now known as - ✔✔A perfected lien.
