(NEWEST) AIC 300 EXAM QUESTIONS AND 100% VERIFIED
ANSWERS
ANSWER: Indemnify to put a party that has suffered a loss back in the same
financial situation as before the loss
ANSWER: Third Party Administrator (TPA) An organisation that offers
administrative services related to insurance and risk finance.
Representative for claims: ANSWER a person in charge of looking into,
assessing, and resolving disputes.
Producer: ANSWER Any of a variety of insurance professionals who represent
insurers, insureds, or both and place insurance and surety business with insurers
ANSWER: Public Adjuster For a price, an insured individual or organisation
hires an outside party to represent them in a claim.
Premium Audit: A REPLY methodical analysis of a policyholder's books of
accounts, records, and operations to ascertain the premium and actual exposure
units for insurance coverages previously offered
Ratio of loss-ANSWER A ratio that shows the proportion of premiums eaten by
losses and compares earned premiums to losses and loss adjustment costs
ANSWER: Loss adjustment expense (LAE) the cost incurred by an insurer in
order to look into, defend, and resolve claims in accordance with the conditions
outlined in the insurance policy.
Response to the First Notice of Loss (FNOL) the first report that alerts the
insurance company to a claim.
Reserve: ANSWER the sum that the insurance company projects and reserves
to settle an ongoing claim.
, Method of individual cases: ANSWER a process for allocating reserves that
takes into account the specifics of the claim as well as the claim representative's
prior experience managing claims that are comparable.
ANSWER for the roundtable technique a technique for establishing reserves
that involves the agreement of two or more claims staff members who have
each reviewed the claims file separately.
Method of average value: ANSWER a technique for case reserving that sets
aside a specific sum of money for each claim as it is filed.
Method of formula: ANSWER a technique that uses a mathematical formula to
set claim reserves.
ANSWER: Expert system method a technique for allocating reserves using a
program that calculates losses and loss adjustment costs.
Direct loss: A response a decrease in property worth brought on promptly and
frequently right away by harm to that property.
Indirect Loss: A Response a loss other than the actual loss of the property that
results from damage to it.
Contribution pro rata-ANSWER An alternative method of insurance wherein
the insurers pay out losses in accordance to the quantity of coverage they have
acquired (their limits of liability).
ANSWER: Insurable interest a reasonably close interest in the topic of an
insurance policy that might result in monetary loss for the interested party in the
case of an insured event.
ANSWER: Punitive damages, often known as exemplary damages A monetary
award made by a court to penalise a defendant for a careless, malevolent, or
dishonest act in order to discourage similar behaviour; the award need not be
related to the actual damages suffered by a party.
ANSWER for compensatory damages a sum of money granted by a judge to
compensate a victim for actual injuries.
Particular damages—ANSWER A type of compensatory damages wherein a
certain amount of money is awarded to cover particular, identified costs related
to the injured person's loss, including lost earnings or medical bills.
ANSWERS
ANSWER: Indemnify to put a party that has suffered a loss back in the same
financial situation as before the loss
ANSWER: Third Party Administrator (TPA) An organisation that offers
administrative services related to insurance and risk finance.
Representative for claims: ANSWER a person in charge of looking into,
assessing, and resolving disputes.
Producer: ANSWER Any of a variety of insurance professionals who represent
insurers, insureds, or both and place insurance and surety business with insurers
ANSWER: Public Adjuster For a price, an insured individual or organisation
hires an outside party to represent them in a claim.
Premium Audit: A REPLY methodical analysis of a policyholder's books of
accounts, records, and operations to ascertain the premium and actual exposure
units for insurance coverages previously offered
Ratio of loss-ANSWER A ratio that shows the proportion of premiums eaten by
losses and compares earned premiums to losses and loss adjustment costs
ANSWER: Loss adjustment expense (LAE) the cost incurred by an insurer in
order to look into, defend, and resolve claims in accordance with the conditions
outlined in the insurance policy.
Response to the First Notice of Loss (FNOL) the first report that alerts the
insurance company to a claim.
Reserve: ANSWER the sum that the insurance company projects and reserves
to settle an ongoing claim.
, Method of individual cases: ANSWER a process for allocating reserves that
takes into account the specifics of the claim as well as the claim representative's
prior experience managing claims that are comparable.
ANSWER for the roundtable technique a technique for establishing reserves
that involves the agreement of two or more claims staff members who have
each reviewed the claims file separately.
Method of average value: ANSWER a technique for case reserving that sets
aside a specific sum of money for each claim as it is filed.
Method of formula: ANSWER a technique that uses a mathematical formula to
set claim reserves.
ANSWER: Expert system method a technique for allocating reserves using a
program that calculates losses and loss adjustment costs.
Direct loss: A response a decrease in property worth brought on promptly and
frequently right away by harm to that property.
Indirect Loss: A Response a loss other than the actual loss of the property that
results from damage to it.
Contribution pro rata-ANSWER An alternative method of insurance wherein
the insurers pay out losses in accordance to the quantity of coverage they have
acquired (their limits of liability).
ANSWER: Insurable interest a reasonably close interest in the topic of an
insurance policy that might result in monetary loss for the interested party in the
case of an insured event.
ANSWER: Punitive damages, often known as exemplary damages A monetary
award made by a court to penalise a defendant for a careless, malevolent, or
dishonest act in order to discourage similar behaviour; the award need not be
related to the actual damages suffered by a party.
ANSWER for compensatory damages a sum of money granted by a judge to
compensate a victim for actual injuries.
Particular damages—ANSWER A type of compensatory damages wherein a
certain amount of money is awarded to cover particular, identified costs related
to the injured person's loss, including lost earnings or medical bills.
