AIC 303 - Ch. 1 Exam questions & answers 100% correct (fully solved)

AIC 303 - CH. 1 EXAM 2025-2026 QUESTIONS
& ANSWERS 100% CORRECT (FULLY SOLVED)




Although there is a wide variety of types of liability claims, they always
involve how many types of parties?

A. Two

B. Three

C. Four

D. Five - correct answer- B. Three



Liability claims always involve three types of parties: the insured, the
insurer and the third party making a claim against the insured.

(Ch. 1 - EO #1)



Coverage disputes might arise from a variety of circumstances including
late notice of an accident, applicability of an exclusion, or failure of the
insured to cooperate. When any of these situations exist, insurers

A. Conduct detailed investigations.

B. Suspend the claim.

C. Contact the state insurance commissioner's office.

D. Notify legal counsel. - correct answer- A. Conduct detailed
investigations.

, When situations arise that may lead to coverage disputes, insurers
conduct prompt and detailed investigations.

(Ch. 1 - EO #2, B.)



Donnell is a claims rep gathering evidence for automotive claim. In
assembling the case file he includes an x-ray of a broken bone suffered
by the claimant. This x-ray is

A. Pictorial evidence.

B. Demonstrative evidence.

C. Real evidence.

D. Documentary evidence. - correct answer- A. Pictorial evidence.



Pictorial evidence includes photographs, x-rays, videos and other images

(Ch. 1 - EO #3)



The job of the claims rep involves three primary areas of claims handling:
coverage, liability and

A. Denials.

B. Initiating litigation.

C. Damages.

D. Investigating other coverages. - correct answer- C. Damages.

The job of the claims rep involves three primary areas of claims handling:
coverage, liability and damages.