AIC 300 CLAIMS IN AN EVOLVING WORLD |ACTUAL
QUESTIONS AND VERIFIED ANSWERS|BRAND NEW
2026-2027 UPDATE|GRADED A+
Question 1
Insurers usually send denial letters
Select one:
A. By email to ensure prompt receipt by the insured.
B. By certified mail with a return receipt requested.
C. By overnight courier.
D. By registered mail.
CORRECT ANSWER
B. By certified mail with a return receipt requested.
Some will also send a copy via regular mail in case the certified letter is not accepted.
Question 2
As methods of communication evolve, it's important for claims professionals to remember
that any written claims communication may be
Select one:
A. Replaced with verbal communication.
B. Misinterpreted.
C. Edited later.
D. Subpoenaed.
CORRECT ANSWER
D. Subpoenaed.
1
, Any written claims communication may be subpoenaed.
Question 3
In which one of the following scenarios is a public adjuster most likely to become
involved?
Select one:
A. An insurer finds it financially unfeasible to hire its own claims staff in a given state.
B. An insured is unable to afford legal representation to contest a claim.
C. A catastrophic disaster strikes, involving damage to many properties.
D. An insured's negotiations with the insurer on a complex claim are not going well.
CORRECT ANSWER
D. An insured's negotiations with the insurer on a complex claim are not going well.
If a claim is complex, or if settlement negotiations are not progressing with the insurer,
the insured may hire a public adjuster to protect his or her interests.
Question 4
Which one of the following statements regarding third-
party administrators (TPAs) is most accurate?
Select one:
A. TPAs are typically used by businesses that have chosen not to self-insure.
B. TPAs handle claims, keep claims records, and perform statistical analyses.
C. TPAs are generally found in an insurer's claims department.
D. TPAs are employed only by independent adjusting firms.
CORRECT ANSWER
2
, B. TPAs handle claims, keep claims records, and perform statistical analyses.
Question 5
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?
Select one:
A. Proper releases taken
B. Timeliness of reports
C. Number of files opened
D. Accuracy of data entry
CORRECT ANSWER
A. Proper releases taken
Proper releases taken is a qualitative audit factor; the others are quantitative.
Question 6
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
Select one:
A. Staff underwriter.
B. Public underwriter.
C. Personal lines underwriter.
D. Line underwriter.
CORRECT ANSWER
D. Line underwriter.
3
, 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 7
The first key to communicating empathetically as a claims professional is
Select one:
A. A comprehensive understanding of relevant insurance policies.
B. Speaking calmly and clearly.
C. Being prepared with all documentation relating to the claim.
D. Listening.
CORRECT ANSWER
D. Listening.
Claims professionals should first listen carefully to understand what the claimant is
saying.
Question 8
Mia tracks loss adjustment expense (LAE) as part of her management of the claims
department for an insurer. Mia considers LAE to be the
Select one:
A. Total amount of loss reserves of all claims.
B. Paid portion of claims.
4
QUESTIONS AND VERIFIED ANSWERS|BRAND NEW
2026-2027 UPDATE|GRADED A+
Question 1
Insurers usually send denial letters
Select one:
A. By email to ensure prompt receipt by the insured.
B. By certified mail with a return receipt requested.
C. By overnight courier.
D. By registered mail.
CORRECT ANSWER
B. By certified mail with a return receipt requested.
Some will also send a copy via regular mail in case the certified letter is not accepted.
Question 2
As methods of communication evolve, it's important for claims professionals to remember
that any written claims communication may be
Select one:
A. Replaced with verbal communication.
B. Misinterpreted.
C. Edited later.
D. Subpoenaed.
CORRECT ANSWER
D. Subpoenaed.
1
, Any written claims communication may be subpoenaed.
Question 3
In which one of the following scenarios is a public adjuster most likely to become
involved?
Select one:
A. An insurer finds it financially unfeasible to hire its own claims staff in a given state.
B. An insured is unable to afford legal representation to contest a claim.
C. A catastrophic disaster strikes, involving damage to many properties.
D. An insured's negotiations with the insurer on a complex claim are not going well.
CORRECT ANSWER
D. An insured's negotiations with the insurer on a complex claim are not going well.
If a claim is complex, or if settlement negotiations are not progressing with the insurer,
the insured may hire a public adjuster to protect his or her interests.
Question 4
Which one of the following statements regarding third-
party administrators (TPAs) is most accurate?
Select one:
A. TPAs are typically used by businesses that have chosen not to self-insure.
B. TPAs handle claims, keep claims records, and perform statistical analyses.
C. TPAs are generally found in an insurer's claims department.
D. TPAs are employed only by independent adjusting firms.
CORRECT ANSWER
2
, B. TPAs handle claims, keep claims records, and perform statistical analyses.
Question 5
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?
Select one:
A. Proper releases taken
B. Timeliness of reports
C. Number of files opened
D. Accuracy of data entry
CORRECT ANSWER
A. Proper releases taken
Proper releases taken is a qualitative audit factor; the others are quantitative.
Question 6
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
Select one:
A. Staff underwriter.
B. Public underwriter.
C. Personal lines underwriter.
D. Line underwriter.
CORRECT ANSWER
D. Line underwriter.
3
, 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 7
The first key to communicating empathetically as a claims professional is
Select one:
A. A comprehensive understanding of relevant insurance policies.
B. Speaking calmly and clearly.
C. Being prepared with all documentation relating to the claim.
D. Listening.
CORRECT ANSWER
D. Listening.
Claims professionals should first listen carefully to understand what the claimant is
saying.
Question 8
Mia tracks loss adjustment expense (LAE) as part of her management of the claims
department for an insurer. Mia considers LAE to be the
Select one:
A. Total amount of loss reserves of all claims.
B. Paid portion of claims.
4
