AIC 300 questions with 100%Answers
As a claims representative, Joshua frequently requests proofs of loss and affidavits,
and conducts examinations under oath and recorded statements. Which one of
Joshua's sworn statements is administered by the insurer's attorney at the office of
the insurer, attorney, or court reporter?
A. Affadivit
B. Recorded statement
C. Proof of loss
D. Examination under oath - ANS D. Examination under oath
Examination under oath is administered by the attorney for the insurer after notice is
issued to appear at the office of the insurer, attorney, or court reporter.
Which one of the following can be applied over time to refine a model to better
predict results?
A. Regression
B. Association rule learning
C. Machine learning
D. Statistics - ANS C. Machine learning
Machine learning can be applied over time to refine a model to better predict results.
Conor is a claims representative whose supervisor is reviewing his claim status
notes. The supervisor took exception with one of Conor's notes, which read, "The
claimant is obviously lying because his account of how the accident happened keeps
changing." The supervisor should advise Conor that this statement is inappropriate
because it is not:
A. Objective
B. Concise
C. Accurate
D. Clear - ANS A. Objective
Claim status notes should contain objective comments about the parties, and this
statement is subjective.
Leila is conducting a claims investigation and is taking a recorded statement from the
claimant. She wants a simple yes-or-no answer to prevent the interviewee from
explaining the answer further. She asks, "You experienced back pain immediately
when you lifted the box, didn't you?" Leila has asked a(n)
A. Direct Question
B. Leading Question
C. Open-Ended Question
D. Indirect Question - ANS B. Leading Question
The NAIC model act specifies that its provisions regarding bad-faith claims are to be
enforced by
A. NAIC personnel.
B. Insurer personnel, on the honor system.
C. State insurance departments.
D. The Federal Trade Commission. - ANS C. State insurance departments.
, The NAIC model act specifies that its provisions regarding bad-faith claims are to be
enforced by state insurance departments.
Ida was named in a bad-faith lawsuit as the claims representative who handled the
file. The court dismissed the suit, however, because the statute of limitations had
expired. This means that
A. She was immune to prosecution as an employee.
B. The limits of the policy had been exceeded.
C. There was no basis to pierce the corporate veil.
D. Too much time had expired after the claim concluded. - ANS D. Too much time
had expired after the claim concluded.
A statute of limitations is a law that stipulates the length of time after an event during
which legal proceedings may be initiated.
Thomas is an attorney who is defending an insurer in a litigated case. He has
located documents that show the insured was aware of the issue that cause the
injury to the claimant before the accident. Thomas is concerned that this evidence
will hurt his case. He should
A. Preserve the evidence as part of the record.
B. File a motion in limine to exclude the evidence.
C. File a motion to suppress the evidence.
D. Destroy the evidence to make the defense stronger. - ANS A. Preserve the
evidence as part of the record.
An insurer defending a first-party coverage lawsuit could be found liable if evidence
is intentionally or negligently lost or destroyed.
Insurers and claim representatives must keep the promises specified in insurance
policies, as well as those created by the law. In insurance transactions, the insured
pays a premium for the insurer's promise to
A. Handle claims in good faith.
B. Comply with federal insurance laws.
C. Compete fairly in the insurance market.
D. Settle all losses in the insured's best interests. - ANS A. Handle claims in good
faith.
In insurance transactions, the insured pays a premium for the insurer's promise to
handle claims in good faith.
Among the methods used to pay claims are the issuance of checks and bank drafts.
The main difference between the two is that
A. Only bank drafts may be used for claim payments in excess of $10,000.
B. With a bank draft, the bank must verify that the insurer has authorized payment.
C. With a check, the bank must verify that the insurer has authorized payment.
D. Only checks may be used for claim payments in excess of $10,000. - ANS B. With
a bank draft, the bank must verify that the insurer has authorized payment.
With a bank draft, the bank must verify that the insurer has authorized payment
before disbursing funds.
Luke runs his business out of a store front in a commercial building. After a fire
destroyed part of the building, Luke made a claim for damages and received a
settlement check from the property insurer. This necessarily means that Luke
As a claims representative, Joshua frequently requests proofs of loss and affidavits,
and conducts examinations under oath and recorded statements. Which one of
Joshua's sworn statements is administered by the insurer's attorney at the office of
the insurer, attorney, or court reporter?
A. Affadivit
B. Recorded statement
C. Proof of loss
D. Examination under oath - ANS D. Examination under oath
Examination under oath is administered by the attorney for the insurer after notice is
issued to appear at the office of the insurer, attorney, or court reporter.
Which one of the following can be applied over time to refine a model to better
predict results?
A. Regression
B. Association rule learning
C. Machine learning
D. Statistics - ANS C. Machine learning
Machine learning can be applied over time to refine a model to better predict results.
Conor is a claims representative whose supervisor is reviewing his claim status
notes. The supervisor took exception with one of Conor's notes, which read, "The
claimant is obviously lying because his account of how the accident happened keeps
changing." The supervisor should advise Conor that this statement is inappropriate
because it is not:
A. Objective
B. Concise
C. Accurate
D. Clear - ANS A. Objective
Claim status notes should contain objective comments about the parties, and this
statement is subjective.
Leila is conducting a claims investigation and is taking a recorded statement from the
claimant. She wants a simple yes-or-no answer to prevent the interviewee from
explaining the answer further. She asks, "You experienced back pain immediately
when you lifted the box, didn't you?" Leila has asked a(n)
A. Direct Question
B. Leading Question
C. Open-Ended Question
D. Indirect Question - ANS B. Leading Question
The NAIC model act specifies that its provisions regarding bad-faith claims are to be
enforced by
A. NAIC personnel.
B. Insurer personnel, on the honor system.
C. State insurance departments.
D. The Federal Trade Commission. - ANS C. State insurance departments.
, The NAIC model act specifies that its provisions regarding bad-faith claims are to be
enforced by state insurance departments.
Ida was named in a bad-faith lawsuit as the claims representative who handled the
file. The court dismissed the suit, however, because the statute of limitations had
expired. This means that
A. She was immune to prosecution as an employee.
B. The limits of the policy had been exceeded.
C. There was no basis to pierce the corporate veil.
D. Too much time had expired after the claim concluded. - ANS D. Too much time
had expired after the claim concluded.
A statute of limitations is a law that stipulates the length of time after an event during
which legal proceedings may be initiated.
Thomas is an attorney who is defending an insurer in a litigated case. He has
located documents that show the insured was aware of the issue that cause the
injury to the claimant before the accident. Thomas is concerned that this evidence
will hurt his case. He should
A. Preserve the evidence as part of the record.
B. File a motion in limine to exclude the evidence.
C. File a motion to suppress the evidence.
D. Destroy the evidence to make the defense stronger. - ANS A. Preserve the
evidence as part of the record.
An insurer defending a first-party coverage lawsuit could be found liable if evidence
is intentionally or negligently lost or destroyed.
Insurers and claim representatives must keep the promises specified in insurance
policies, as well as those created by the law. In insurance transactions, the insured
pays a premium for the insurer's promise to
A. Handle claims in good faith.
B. Comply with federal insurance laws.
C. Compete fairly in the insurance market.
D. Settle all losses in the insured's best interests. - ANS A. Handle claims in good
faith.
In insurance transactions, the insured pays a premium for the insurer's promise to
handle claims in good faith.
Among the methods used to pay claims are the issuance of checks and bank drafts.
The main difference between the two is that
A. Only bank drafts may be used for claim payments in excess of $10,000.
B. With a bank draft, the bank must verify that the insurer has authorized payment.
C. With a check, the bank must verify that the insurer has authorized payment.
D. Only checks may be used for claim payments in excess of $10,000. - ANS B. With
a bank draft, the bank must verify that the insurer has authorized payment.
With a bank draft, the bank must verify that the insurer has authorized payment
before disbursing funds.
Luke runs his business out of a store front in a commercial building. After a fire
destroyed part of the building, Luke made a claim for damages and received a
settlement check from the property insurer. This necessarily means that Luke
