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AIC 304 (ACTUAL 2025/2026) EXAM QUESTIONS
WITH 100% VERIFIED ANSWERS
Scope - (answers)A list of the areas damaged that includes the type of damage, a
description of the proposed action to take regarding the damaged property (such
as repair, replace, remove, or demolish), and the area's measurements.
Nonwaiver agreement - (answers)A signed agreement indicating that during the
course of investigation, neither the insurer nor the insured waives rights under
the policy
Insurable interest - (answers)An interest in the subject of an insurance policy that
is not unduly remote and that would cause the interested party to suffer financial
loss if an insured event occurred.
Bailee - (answers)The party temporarily possessing the personal property in a
bailment.
Trustee - (answers)Someone who has the legal title to a property but is
responsible for ensuring that it be used, handled, and transferred solely for the
benefit of the beneficiary.
Security interest - (answers)An interest in property (real or personal) that allows
the property to be sold on default to satisfy the debt for which the security
interest was given.
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Public adjuster - (answers)An outside organization or person hired by an insured
to represent the insured in a claim in exchange for a fee.
Business income insurance - (answers)Insurance that covers the reduction in an
organization's income when operations are interrupted by damage to property
caused by a covered peril.
Business interruption - (answers)Loss of revenue that a business or another
organization sustains because its operations are suspended as a result of physical
injury to its property
Net income - (answers)The difference between revenues (such as money received
for goods or services) and expenses (such as money paid for merchandise, rent,
and insurance).
Profit - (answers)Net income that results when revenues exceed expenses.
Net loss - (answers)Net income that results when expenses exceed revenues.
Continuing expenses - (answers)Expenses that continue to be incurred during a
business interruption.
Noncontinuing expenses - (answers)Expenses that will not continue during a
business interruption.
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Extra expenses - (answers)Expenses, in addition to ordinary expenses, that an
organization incurs to mitigate the effects of a business interruption.
Inland marine insurance - (answers)Insurance that covers many different classes
of property that typically involve an element of transportation on land.
Marine insurance - (answers)Insurance that, in the U.S., includes both ocean and
inland marine coverage and, in the rest of the world, is limited to insurance for
vessels and cargo.
Nationwide Marine Definition - (answers)Statement of the types of property that
may be insured on inland marine and ocean marine insurance forms.
Origin and cause expert - (answers)An expert who independently determines
where and how a fire began.
Incendiary fire - (answers)An intentionally set fire.
Trailer - (answers)Fuel configured in a manner to spread a fire.
Alibi - (answers)An assertion that the party in question was elsewhere at the time
the crime occurred.
AIC 304 (ACTUAL 2025/2026) EXAM QUESTIONS
WITH 100% VERIFIED ANSWERS
Scope - (answers)A list of the areas damaged that includes the type of damage, a
description of the proposed action to take regarding the damaged property (such
as repair, replace, remove, or demolish), and the area's measurements.
Nonwaiver agreement - (answers)A signed agreement indicating that during the
course of investigation, neither the insurer nor the insured waives rights under
the policy
Insurable interest - (answers)An interest in the subject of an insurance policy that
is not unduly remote and that would cause the interested party to suffer financial
loss if an insured event occurred.
Bailee - (answers)The party temporarily possessing the personal property in a
bailment.
Trustee - (answers)Someone who has the legal title to a property but is
responsible for ensuring that it be used, handled, and transferred solely for the
benefit of the beneficiary.
Security interest - (answers)An interest in property (real or personal) that allows
the property to be sold on default to satisfy the debt for which the security
interest was given.
,2|Page
Public adjuster - (answers)An outside organization or person hired by an insured
to represent the insured in a claim in exchange for a fee.
Business income insurance - (answers)Insurance that covers the reduction in an
organization's income when operations are interrupted by damage to property
caused by a covered peril.
Business interruption - (answers)Loss of revenue that a business or another
organization sustains because its operations are suspended as a result of physical
injury to its property
Net income - (answers)The difference between revenues (such as money received
for goods or services) and expenses (such as money paid for merchandise, rent,
and insurance).
Profit - (answers)Net income that results when revenues exceed expenses.
Net loss - (answers)Net income that results when expenses exceed revenues.
Continuing expenses - (answers)Expenses that continue to be incurred during a
business interruption.
Noncontinuing expenses - (answers)Expenses that will not continue during a
business interruption.
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Extra expenses - (answers)Expenses, in addition to ordinary expenses, that an
organization incurs to mitigate the effects of a business interruption.
Inland marine insurance - (answers)Insurance that covers many different classes
of property that typically involve an element of transportation on land.
Marine insurance - (answers)Insurance that, in the U.S., includes both ocean and
inland marine coverage and, in the rest of the world, is limited to insurance for
vessels and cargo.
Nationwide Marine Definition - (answers)Statement of the types of property that
may be insured on inland marine and ocean marine insurance forms.
Origin and cause expert - (answers)An expert who independently determines
where and how a fire began.
Incendiary fire - (answers)An intentionally set fire.
Trailer - (answers)Fuel configured in a manner to spread a fire.
Alibi - (answers)An assertion that the party in question was elsewhere at the time
the crime occurred.
