AIC STUDY TEST 2.
The insurance-to-value provision often found in homeowners policies applies only to - ANS >> A.
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Property insured under Coverage A--Dwelling.
bb bb bb bb bb
B. Personal property.
bb bb
C. Property insured under Coverage A--Dwelling and Coverage B--Other Structures.
bb bb bb bb bb bb bb bb bb
D. Property insured under Coverage B--Other Structures
bb bb bb bb bb bb
C
Benjamin is a claims representative handling a merchandise loss. He needs someone to prepare
bb bb bb bb bb bb bb bb bb bb bb bb bb
an inventory of the damaged goods, verify their value, preserve damaged items, locate the best
bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb
market for salvageable items, and oversee the sale. Benjamin should hire a(n) - ANS >> A.
bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb
Wholesaler.
bb
B. Salvor.
bb
C. Public adjuster.
bb bb
D. Junk dealer.
bb bb
B
Philip is a claims representative for Goshen Insurance. He is working on a motor truck cargo
bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb
(MTC) liability claim and is trying to determine if the entity facing legal liability for the cargo
bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb
loss is an insured under the MTC policy. In addition to the blanket MTC policy, Philip will need
bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb
to review which one of the following? - ANS >> A. The schedule of vehicles
bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb
B. The insured's trip transit policy
bb bb bb bb bb
C. The schedule of terminals
bb bb bb bb
D. The carrier section of the bill of lading
bb bb bb bb bb bb bb bb
D
,Brenda and Tyrone are homeowners with a monthly mortgage of $1,200. Their home sustains
bb bb bb bb bb bb bb bb bb bb bb bb bb
damage from a fire, and restoration is expected to take several months to complete. They rent
bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb
an apartment with a monthly rent of $1,500 to occupy during restoration. Which one of the
bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb
following statements regarding their additional living expenses under Coverage D in ISO
bb bb bb bb bb bb bb bb bb bb bb bb
homeowners policy forms is most accurate? - ANS >> A. They would be covered for $2,700,
bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb
the total of both their mortgage and the rent on their temporary apartment.
bb bb bb bb bb bb bb bb bb bb bb bb bb
B. They would be covered for $1,500 a month, the full rent on their temporary apartment.
bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb
C. They would be covered for $300 a month, the difference between their mortgage and
bb bb bb bb bb bb bb bb bb bb bb bb bb bb
temporary monthly rent.
bb bb bb
D. There would be no coverage, as additional living expenses are provided only if the temporary
bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb
housing expense is equal to or less than that of the damaged property.
bb bb bb bb bb bb bb bb bb bb bb bb bb
B
Katarina is a claims representative who is discussing a property loss incident with the insured.
bb bb bb bb bb bb bb bb bb bb bb bb bb bb
She has asked him if a violent expansion of air occurred, if a loud noise was reported, and if
bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb
a sudden and violent outbreak of physical forces occurred. Katarina is trying to determine -
bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb
ANS >> A. Whether a fire occurred.
bb bb bb bb bb bb bb
B. Grounds for denying the claim.
bb bb bb bb bb
C. Whether an explosion occurred.
bb bb bb bb
D. Grounds for accepting the claim.
bb bb bb bb bb
C
Alex is a claims adjuster handling a claim for theft of covered property. Alex's first step should
bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb
be to - ANS >> A. Confirm who owns the property that has been reported stolen.
bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb
B. Determine if theft is a covered loss and identify policy limitations.
bb bb bb bb bb bb bb bb bb bb bb
C. Determine who has an insurable interest in the property.
bb bb bb bb bb bb bb bb bb
D. Obtain a police report of the incident.
bb bb bb bb bb bb bb
B
, Lamar holds an occurrence-based homeowners policy from Gamma Insurance with an expiration
bb bb bb bb bb bb bb bb bb bb bb
date of July 31. He decides to switch insurers, and executes a new policy with Upsilon
bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb
Insurance to take effect on August 1. On July 12th, a fire damages his home. Repairs are
bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb
expected to take several months, during which time Lamar will need to rent an apartment.
bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb
Which one of the following states how his additional living expenses claim for the apartment
bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb
rent will be handled? - ANS >> A. Gamma Insurance will pay the rent in full.
bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb
B. Upsilon Insurance will pay the rent in full.
bb bb bb bb bb bb bb bb
C. The total amount of the living expenses will be divided equally between Gamma Insurance
bb bb bb bb bb bb bb bb bb bb bb bb bb bb
and Upsilon Insurance.
bb bb bb
D. Gamma Insurance will pay the rent until July 31, with Upsilon Insurance assuming payments
bb bb bb bb bb bb bb bb bb bb bb bb bb bb
on August 1.
bb bb bb
A
The process of reviewing actual incurred expenses and partial sales against projections done
bb bb bb bb bb bb bb bb bb bb bb bb
before the end of the loss period is called - ANS >> A. Cross-checking.
bb bb bb bb bb bb bb bb bb bb bb bb bb bb
B. Auditing.
bb
C. Expense verification.
bb bb
D. Reconciliation.
bb
D
Annual transit policies and trip transit policies typically use which one of the following methods
bb bb bb bb bb bb bb bb bb bb bb bb bb bb
to value shipments between a seller and a buyer? - ANS >> A. Invoice price
bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb
B. Original cost
bb bb
C. Selling price
bb bb
D. Market value
bb bb
A
Greene Café rents retail space on the first floor of an office building. Greene Café's a
bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb
Commercial General Liability (CGL) Coverage Form provides "fire legal liability" or "damage to
bb bb bb bb bb bb bb bb bb bb bb bb bb
The insurance-to-value provision often found in homeowners policies applies only to - ANS >> A.
bb bb bb bb bb bb bb bb bb bb bb bb bb bb
Property insured under Coverage A--Dwelling.
bb bb bb bb bb
B. Personal property.
bb bb
C. Property insured under Coverage A--Dwelling and Coverage B--Other Structures.
bb bb bb bb bb bb bb bb bb
D. Property insured under Coverage B--Other Structures
bb bb bb bb bb bb
C
Benjamin is a claims representative handling a merchandise loss. He needs someone to prepare
bb bb bb bb bb bb bb bb bb bb bb bb bb
an inventory of the damaged goods, verify their value, preserve damaged items, locate the best
bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb
market for salvageable items, and oversee the sale. Benjamin should hire a(n) - ANS >> A.
bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb
Wholesaler.
bb
B. Salvor.
bb
C. Public adjuster.
bb bb
D. Junk dealer.
bb bb
B
Philip is a claims representative for Goshen Insurance. He is working on a motor truck cargo
bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb
(MTC) liability claim and is trying to determine if the entity facing legal liability for the cargo
bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb
loss is an insured under the MTC policy. In addition to the blanket MTC policy, Philip will need
bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb
to review which one of the following? - ANS >> A. The schedule of vehicles
bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb
B. The insured's trip transit policy
bb bb bb bb bb
C. The schedule of terminals
bb bb bb bb
D. The carrier section of the bill of lading
bb bb bb bb bb bb bb bb
D
,Brenda and Tyrone are homeowners with a monthly mortgage of $1,200. Their home sustains
bb bb bb bb bb bb bb bb bb bb bb bb bb
damage from a fire, and restoration is expected to take several months to complete. They rent
bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb
an apartment with a monthly rent of $1,500 to occupy during restoration. Which one of the
bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb
following statements regarding their additional living expenses under Coverage D in ISO
bb bb bb bb bb bb bb bb bb bb bb bb
homeowners policy forms is most accurate? - ANS >> A. They would be covered for $2,700,
bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb
the total of both their mortgage and the rent on their temporary apartment.
bb bb bb bb bb bb bb bb bb bb bb bb bb
B. They would be covered for $1,500 a month, the full rent on their temporary apartment.
bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb
C. They would be covered for $300 a month, the difference between their mortgage and
bb bb bb bb bb bb bb bb bb bb bb bb bb bb
temporary monthly rent.
bb bb bb
D. There would be no coverage, as additional living expenses are provided only if the temporary
bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb
housing expense is equal to or less than that of the damaged property.
bb bb bb bb bb bb bb bb bb bb bb bb bb
B
Katarina is a claims representative who is discussing a property loss incident with the insured.
bb bb bb bb bb bb bb bb bb bb bb bb bb bb
She has asked him if a violent expansion of air occurred, if a loud noise was reported, and if
bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb
a sudden and violent outbreak of physical forces occurred. Katarina is trying to determine -
bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb
ANS >> A. Whether a fire occurred.
bb bb bb bb bb bb bb
B. Grounds for denying the claim.
bb bb bb bb bb
C. Whether an explosion occurred.
bb bb bb bb
D. Grounds for accepting the claim.
bb bb bb bb bb
C
Alex is a claims adjuster handling a claim for theft of covered property. Alex's first step should
bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb
be to - ANS >> A. Confirm who owns the property that has been reported stolen.
bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb
B. Determine if theft is a covered loss and identify policy limitations.
bb bb bb bb bb bb bb bb bb bb bb
C. Determine who has an insurable interest in the property.
bb bb bb bb bb bb bb bb bb
D. Obtain a police report of the incident.
bb bb bb bb bb bb bb
B
, Lamar holds an occurrence-based homeowners policy from Gamma Insurance with an expiration
bb bb bb bb bb bb bb bb bb bb bb
date of July 31. He decides to switch insurers, and executes a new policy with Upsilon
bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb
Insurance to take effect on August 1. On July 12th, a fire damages his home. Repairs are
bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb
expected to take several months, during which time Lamar will need to rent an apartment.
bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb
Which one of the following states how his additional living expenses claim for the apartment
bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb
rent will be handled? - ANS >> A. Gamma Insurance will pay the rent in full.
bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb
B. Upsilon Insurance will pay the rent in full.
bb bb bb bb bb bb bb bb
C. The total amount of the living expenses will be divided equally between Gamma Insurance
bb bb bb bb bb bb bb bb bb bb bb bb bb bb
and Upsilon Insurance.
bb bb bb
D. Gamma Insurance will pay the rent until July 31, with Upsilon Insurance assuming payments
bb bb bb bb bb bb bb bb bb bb bb bb bb bb
on August 1.
bb bb bb
A
The process of reviewing actual incurred expenses and partial sales against projections done
bb bb bb bb bb bb bb bb bb bb bb bb
before the end of the loss period is called - ANS >> A. Cross-checking.
bb bb bb bb bb bb bb bb bb bb bb bb bb bb
B. Auditing.
bb
C. Expense verification.
bb bb
D. Reconciliation.
bb
D
Annual transit policies and trip transit policies typically use which one of the following methods
bb bb bb bb bb bb bb bb bb bb bb bb bb bb
to value shipments between a seller and a buyer? - ANS >> A. Invoice price
bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb
B. Original cost
bb bb
C. Selling price
bb bb
D. Market value
bb bb
A
Greene Café rents retail space on the first floor of an office building. Greene Café's a
bb bb bb bb bb bb bb bb bb bb bb bb bb bb bb
Commercial General Liability (CGL) Coverage Form provides "fire legal liability" or "damage to
bb bb bb bb bb bb bb bb bb bb bb bb bb
