AIC 304 STUDY questions with correct
detailed verified answers latest update
2025
Francesca is handling a claim for theft of property. She has asked the
insured to provide documentation of the theft of his television. The
insured provided copies of the warranty, the instruction manual, a
photo of the television in his house, and the original receipt. Which
one of the following pieces of documentation provided by the
policyholder does Francesca considers to be the best?
A. Photograph
B. Instruction manual
C. Warranty
D. Original receipt
--- correct precise answer ---
D
The Loss Determination condition in the ISO Business Income (and
Extra Expense) Coverage Form and the ISO Extra Expense Coverage
Form states that the amount of extra expense consists of all expenses
in excess of normal operating expenses. From this total, the insurer
deducts
,A. The salvage value of temporary property.
B. Property taxes for a temporary location.
C. Payroll costs for temporary labor.
D. Utility costs for a temporary location.
--- correct precise answer ---
A
Samuel has property coverage for his beach house that includes the
standard water exclusion. During a major storm, the property was
damaged by waves that crested a dune; flooding from torrential rain;
a fire, which required firefighters to spray water to extinguish; and a
mudslide from a nearby hill that washed away. Which one of the
following sources of water damage would Samuel determine is
covered by the policy?
A. Water from fire hose
B. Mudslide from hill
C. Flooding from rain
D. Waves from ocean
--- correct precise answer ---
A
, In determining ACV, the broad evidence rule explicitly requires claims
reps handling property losses to
A. Consider market value only.
B. Consider all relevant factors.
C. Consider the full indemnity of the insured.
D. Consider depreciation only.
--- correct precise answer ---
B
The appraisal provision in an insurance policy covering property is
used to resolve issues involving
A. Amount of loss.
B. Exclusions and/or endorsements.
C. Coverage questions.
D. Policy interpretation.
--- correct precise answer ---
A
After a potentially responsible third party is identified, a claims rep
should investigate the potential opportunity for subrogation
A. At the same time as the loss investigation.
detailed verified answers latest update
2025
Francesca is handling a claim for theft of property. She has asked the
insured to provide documentation of the theft of his television. The
insured provided copies of the warranty, the instruction manual, a
photo of the television in his house, and the original receipt. Which
one of the following pieces of documentation provided by the
policyholder does Francesca considers to be the best?
A. Photograph
B. Instruction manual
C. Warranty
D. Original receipt
--- correct precise answer ---
D
The Loss Determination condition in the ISO Business Income (and
Extra Expense) Coverage Form and the ISO Extra Expense Coverage
Form states that the amount of extra expense consists of all expenses
in excess of normal operating expenses. From this total, the insurer
deducts
,A. The salvage value of temporary property.
B. Property taxes for a temporary location.
C. Payroll costs for temporary labor.
D. Utility costs for a temporary location.
--- correct precise answer ---
A
Samuel has property coverage for his beach house that includes the
standard water exclusion. During a major storm, the property was
damaged by waves that crested a dune; flooding from torrential rain;
a fire, which required firefighters to spray water to extinguish; and a
mudslide from a nearby hill that washed away. Which one of the
following sources of water damage would Samuel determine is
covered by the policy?
A. Water from fire hose
B. Mudslide from hill
C. Flooding from rain
D. Waves from ocean
--- correct precise answer ---
A
, In determining ACV, the broad evidence rule explicitly requires claims
reps handling property losses to
A. Consider market value only.
B. Consider all relevant factors.
C. Consider the full indemnity of the insured.
D. Consider depreciation only.
--- correct precise answer ---
B
The appraisal provision in an insurance policy covering property is
used to resolve issues involving
A. Amount of loss.
B. Exclusions and/or endorsements.
C. Coverage questions.
D. Policy interpretation.
--- correct precise answer ---
A
After a potentially responsible third party is identified, a claims rep
should investigate the potential opportunity for subrogation
A. At the same time as the loss investigation.
