AIC 303 FINAL EXAM ACTUAL QUESTIONS
WITH 100% CORRECT ANSWERS
A typically available cyber risk coverage that includes payment of fines
and penalties is
Select one:
A. Regulatory action.
B. Cyber crime.
C. Cyber extortion.
D. Crisis management to mitigate damage to reputation. - correct
answer- A. A typically available cyber risk coverage that includes
payment of fines and penalties is regulatory action.
A typically available cyber risk coverage that protects an insured when a
thief causes the insured's financial institution to transfer funds is called
Select one:
A. Fund transfer fraud.
B. Cyber extortion.
C. Network security liability.
D. Regulatory action. - correct answer- A. A typically available cyber
risk coverage that protects an insured when a thief causes the insured's
financial institution to transfer funds is called fund transfer fraud.
,Alex buys a chemistry set for his daughter, Beatrice. When Beatrice tries
one of the experiments, she accidentally adds the wrong component to
the mixture. The resulting reaction causes the experiment to explode
and seriously injury Beatrice. Alex's hires an attorney who brings a
lawsuit against the chemistry set manufacturer. In the lawsuit, the
attorney maintains that the manufacturer
Select one:
A. Demonstrated an intent to cause harm.
B. Was guilty of negligent design.
C. Was guilty of negligent manufacture.
D. Breached an absolute duty of safety. - correct answer- D.
Breached an absolute duty of safety. Strict liability applies most often to
products or ultrahazardous activities. Proof of either negligence or an
intent to harm is not required.
Although there is a wide variety of types of liability claims, they always
involve how many types of parties?
Select one:
A. Two
B. Three
C. Four
, D. Five - correct answer- B. Liability claims always involve three
types of parties: the insured, the insurer and the third party making a
claim against the insured.
An excess liability insurance policy that applies to a loss that exceeds the
underlying limits only if the loss is also covered under the provisions of
the excess liability insurance policy is called
Select one:
A. An umbrella liability policy.
B. An aggregate excess liability policy.
C. A following-form excess liability policy.
D. A self-contained excess liability policy. - correct answer- D. An
excess liability insurance policy that applies to a loss that exceeds the
underlying limits only if the loss is also covered under the provisions of
the excess liability insurance policy is called a self-contained excess
liability policy.
An occurrence as defined in the HO-3 policy may include
A. Property damage caused intentionally by an insured who is 13 years
old or older.
B. More than one accident with more than one injury.
C. One accident involving injury to more than one person.
D. A non-accidental event. - correct answer- C. One accident
involving injury to more than one person. An occurrence is one accident,
WITH 100% CORRECT ANSWERS
A typically available cyber risk coverage that includes payment of fines
and penalties is
Select one:
A. Regulatory action.
B. Cyber crime.
C. Cyber extortion.
D. Crisis management to mitigate damage to reputation. - correct
answer- A. A typically available cyber risk coverage that includes
payment of fines and penalties is regulatory action.
A typically available cyber risk coverage that protects an insured when a
thief causes the insured's financial institution to transfer funds is called
Select one:
A. Fund transfer fraud.
B. Cyber extortion.
C. Network security liability.
D. Regulatory action. - correct answer- A. A typically available cyber
risk coverage that protects an insured when a thief causes the insured's
financial institution to transfer funds is called fund transfer fraud.
,Alex buys a chemistry set for his daughter, Beatrice. When Beatrice tries
one of the experiments, she accidentally adds the wrong component to
the mixture. The resulting reaction causes the experiment to explode
and seriously injury Beatrice. Alex's hires an attorney who brings a
lawsuit against the chemistry set manufacturer. In the lawsuit, the
attorney maintains that the manufacturer
Select one:
A. Demonstrated an intent to cause harm.
B. Was guilty of negligent design.
C. Was guilty of negligent manufacture.
D. Breached an absolute duty of safety. - correct answer- D.
Breached an absolute duty of safety. Strict liability applies most often to
products or ultrahazardous activities. Proof of either negligence or an
intent to harm is not required.
Although there is a wide variety of types of liability claims, they always
involve how many types of parties?
Select one:
A. Two
B. Three
C. Four
, D. Five - correct answer- B. Liability claims always involve three
types of parties: the insured, the insurer and the third party making a
claim against the insured.
An excess liability insurance policy that applies to a loss that exceeds the
underlying limits only if the loss is also covered under the provisions of
the excess liability insurance policy is called
Select one:
A. An umbrella liability policy.
B. An aggregate excess liability policy.
C. A following-form excess liability policy.
D. A self-contained excess liability policy. - correct answer- D. An
excess liability insurance policy that applies to a loss that exceeds the
underlying limits only if the loss is also covered under the provisions of
the excess liability insurance policy is called a self-contained excess
liability policy.
An occurrence as defined in the HO-3 policy may include
A. Property damage caused intentionally by an insured who is 13 years
old or older.
B. More than one accident with more than one injury.
C. One accident involving injury to more than one person.
D. A non-accidental event. - correct answer- C. One accident
involving injury to more than one person. An occurrence is one accident,
