AIC 31 Exam 2026 Questions and
Answers
Which one of the following describes a windstorm under an insurance policy? -
Answer -A wind of any velocity having sufficient force to cause damage
In a specified perils policy, a loss is covered only if - Answer -The cause of loss is
listed.
A mortgagee's rights under a property insurance policy can best be described as -
Answer -Independent of the named insured's rights and duties.
A specific exclusion common to most property policies is - Answer -Ordinance or
law.
Paco Campos accidentally tosses a cigarette in a trash can in his old detached
garage. The garage catches on fire, but Paco, knowing his insurance policy will
provide coverage, waits until the garage is severely damaged before he begins to
attempt to put out the fire or call the fire department. This is an example of -
Answer -A morale hazard.
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,Which one of the following statements is true regarding coinsurance? - Answer -
The adequacy of the amount of insurance purchased is measured against the value
of the property insured.
The earliest types of insurance coverage addressed only the building structures
exposure and the peril of - Answer -Fire.
When the insured has a specified-perils policy, the - Answer -Insured is obligated
to determine which peril applies to the damage to his or her property.
Lisa is covered under a specified-perils policy. She has called her insurance
producer to report the theft of her wedding ring from her home. The burden of
proof in this situation is on - Answer -Lisa.
Which one of the following is true regarding "additional coverage" - Answer -
Some additional coverages are created to reinstate coverage that has otherwise
been eliminated by exclusions.
Which one of the following is an important consideration in determining whether
an object is personal property or a fixture? - Answer -The owner's intent
Concurrent causation becomes an issue when - Answer -One of the perils is a
covered peril and the other is not.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
,Concurrent causation is - Answer -A single loss caused by two or more perils,
acting either simultaneously or in succession.
Henry's home was badly damaged from weight of ice and snow on the roof and
eaves. The property insurance coverage that would cover his loss is - Answer -
Broad-form coverage.
Sharon and Robin joined in a business venture where they both share in business
profits and losses. Also involved in this venture is Larry, who has invested
$50,000, which is the extent of his liability in the business. Larry is a - Answer -
Limited partner.
Freelance writer John owns a barn containing wheelbarrows, ladders, roofing
shingles, a lawn mower, clothes, some copyrights, two vehicles, and some
miscellaneous personal property. Which one of the following property items would
be considered John's real property? - Answer -Roofing shingles
In determining coverage for a loss under a special-form policy, the adjuster must
determine - Answer -Whether any exclusions apply.
Lifelong friends Sam and Peter combine their funds and purchase a summer home
on a lake. As co-owners, each of them has a 50 percent interest in the property.
Sam and Peter - Answer -Are tenants in common.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
, Which one of the following forms added seven additional perils to the Basic Form
endorsement? - Answer -The Extended Coverage endorsement
Concurrent causation is defined as - Answer -A single loss that was caused by two
or more perils, occurring simultaneously or in succession.
Collapse as an additional coverage under the HO-3 is an example of - Answer -A
reinstatement of coverage previously excluded.
Which one of the following statements is true regarding the peril of collapse? -
Answer -Insurers agree to pay for collapse of the insured building caused by perils
listed in the form.
Which one of the following statements is true regarding a specified-perils coverage
loss? - Answer -An adjuster must verify an identified peril caused the loss before
paying the loss.
The past month has caused many fire-related problems in Sarah's household.
Which one of the following incidents would be considered a hostile fire by Sarah's
insurance producer? - Answer -Sarah burned trash in her yard, and the fire spread
and burned down Sarah's garage.
Alvin Ross has been informed by his insurance agent that his policy protects
against risk of direct physical loss to property. Over time, the walls began to crack
©COPYRIGHT 2025, ALL RIGHTS RESERVED 4
Answers
Which one of the following describes a windstorm under an insurance policy? -
Answer -A wind of any velocity having sufficient force to cause damage
In a specified perils policy, a loss is covered only if - Answer -The cause of loss is
listed.
A mortgagee's rights under a property insurance policy can best be described as -
Answer -Independent of the named insured's rights and duties.
A specific exclusion common to most property policies is - Answer -Ordinance or
law.
Paco Campos accidentally tosses a cigarette in a trash can in his old detached
garage. The garage catches on fire, but Paco, knowing his insurance policy will
provide coverage, waits until the garage is severely damaged before he begins to
attempt to put out the fire or call the fire department. This is an example of -
Answer -A morale hazard.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,Which one of the following statements is true regarding coinsurance? - Answer -
The adequacy of the amount of insurance purchased is measured against the value
of the property insured.
The earliest types of insurance coverage addressed only the building structures
exposure and the peril of - Answer -Fire.
When the insured has a specified-perils policy, the - Answer -Insured is obligated
to determine which peril applies to the damage to his or her property.
Lisa is covered under a specified-perils policy. She has called her insurance
producer to report the theft of her wedding ring from her home. The burden of
proof in this situation is on - Answer -Lisa.
Which one of the following is true regarding "additional coverage" - Answer -
Some additional coverages are created to reinstate coverage that has otherwise
been eliminated by exclusions.
Which one of the following is an important consideration in determining whether
an object is personal property or a fixture? - Answer -The owner's intent
Concurrent causation becomes an issue when - Answer -One of the perils is a
covered peril and the other is not.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
,Concurrent causation is - Answer -A single loss caused by two or more perils,
acting either simultaneously or in succession.
Henry's home was badly damaged from weight of ice and snow on the roof and
eaves. The property insurance coverage that would cover his loss is - Answer -
Broad-form coverage.
Sharon and Robin joined in a business venture where they both share in business
profits and losses. Also involved in this venture is Larry, who has invested
$50,000, which is the extent of his liability in the business. Larry is a - Answer -
Limited partner.
Freelance writer John owns a barn containing wheelbarrows, ladders, roofing
shingles, a lawn mower, clothes, some copyrights, two vehicles, and some
miscellaneous personal property. Which one of the following property items would
be considered John's real property? - Answer -Roofing shingles
In determining coverage for a loss under a special-form policy, the adjuster must
determine - Answer -Whether any exclusions apply.
Lifelong friends Sam and Peter combine their funds and purchase a summer home
on a lake. As co-owners, each of them has a 50 percent interest in the property.
Sam and Peter - Answer -Are tenants in common.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
, Which one of the following forms added seven additional perils to the Basic Form
endorsement? - Answer -The Extended Coverage endorsement
Concurrent causation is defined as - Answer -A single loss that was caused by two
or more perils, occurring simultaneously or in succession.
Collapse as an additional coverage under the HO-3 is an example of - Answer -A
reinstatement of coverage previously excluded.
Which one of the following statements is true regarding the peril of collapse? -
Answer -Insurers agree to pay for collapse of the insured building caused by perils
listed in the form.
Which one of the following statements is true regarding a specified-perils coverage
loss? - Answer -An adjuster must verify an identified peril caused the loss before
paying the loss.
The past month has caused many fire-related problems in Sarah's household.
Which one of the following incidents would be considered a hostile fire by Sarah's
insurance producer? - Answer -Sarah burned trash in her yard, and the fire spread
and burned down Sarah's garage.
Alvin Ross has been informed by his insurance agent that his policy protects
against risk of direct physical loss to property. Over time, the walls began to crack
©COPYRIGHT 2025, ALL RIGHTS RESERVED 4
