AIC 304 STUDY LATEST 2025-2026 EXAM
UPDATE QUESTIONS AND ANSWERS |GRADE
A+ GUARANTEE
Annual transit policies and trip transit policies typically use which one
of the following methods to value shipments between a seller and a
buyer? - Answer-A. Invoice price
B. Original cost
C. Selling price
D. Market value
A
Greene Café rents retail space on the first floor of an office building.
Greene Café's a Commercial General Liability (CGL) Coverage Form
provides "fire legal liability" or "damage to premises rented to you". The
"fire legal liability" coverage - Answer-A. Applies to both real and
personal property in the Greene's care, custody, and control.
B. Provides for a broad range of perils when the property is rented over
seven consecutive days.
C. Excludes coverage for premises temporarily used by Greene Café.
D. Provides limited coverage for liability arising out of the part of the
building rented to Greene.
,D
In business income insurance, the expenses that an organization would
not have incurred if the business interruption had not occurred are called
- Answer-A. Continuing expenses.
B. Excludable expenses.
C. Extra expenses.
D. Contingent expenses.
C
Adam is adjusting a claim for fire damage to insured property and has
gathered the following facts: multiple fires were involved; the building
typically contained flammable materials; the insured's full warehouse of
inventory was damaged; and the fire protection system sounded
normally. Which one of Adam's findings could lead him to believe the
fire was incendiary? - Answer-A. Flammable materials
B. Fire protection system
C. Damaged inventory
D. Multiple fires
D
Alterations or additions made to the building at the expense of an
insured who does not own the building and who cannot legally remove
them are referred to as - Answer-A. Improvements and betterments.
, B. Leaseholder enhancements.
C. Personal property of others.
D. Building fixtures and fittings.
A
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? - Answer-A. Photograph
B. Instruction manual
C. Warranty
D. Original receipt
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
- Answer-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.
UPDATE QUESTIONS AND ANSWERS |GRADE
A+ GUARANTEE
Annual transit policies and trip transit policies typically use which one
of the following methods to value shipments between a seller and a
buyer? - Answer-A. Invoice price
B. Original cost
C. Selling price
D. Market value
A
Greene Café rents retail space on the first floor of an office building.
Greene Café's a Commercial General Liability (CGL) Coverage Form
provides "fire legal liability" or "damage to premises rented to you". The
"fire legal liability" coverage - Answer-A. Applies to both real and
personal property in the Greene's care, custody, and control.
B. Provides for a broad range of perils when the property is rented over
seven consecutive days.
C. Excludes coverage for premises temporarily used by Greene Café.
D. Provides limited coverage for liability arising out of the part of the
building rented to Greene.
,D
In business income insurance, the expenses that an organization would
not have incurred if the business interruption had not occurred are called
- Answer-A. Continuing expenses.
B. Excludable expenses.
C. Extra expenses.
D. Contingent expenses.
C
Adam is adjusting a claim for fire damage to insured property and has
gathered the following facts: multiple fires were involved; the building
typically contained flammable materials; the insured's full warehouse of
inventory was damaged; and the fire protection system sounded
normally. Which one of Adam's findings could lead him to believe the
fire was incendiary? - Answer-A. Flammable materials
B. Fire protection system
C. Damaged inventory
D. Multiple fires
D
Alterations or additions made to the building at the expense of an
insured who does not own the building and who cannot legally remove
them are referred to as - Answer-A. Improvements and betterments.
, B. Leaseholder enhancements.
C. Personal property of others.
D. Building fixtures and fittings.
A
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? - Answer-A. Photograph
B. Instruction manual
C. Warranty
D. Original receipt
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
- Answer-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.
