AIC 303 Exam – Questions With Verified Solutions
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Terms in this set (137)
One function of umbrella Covers some claims that the insured organization's
liability insurance that underlying liability policies do not cover.
differs from the functions of
excess liability insurance is Umbrella insurance covers some claims that the insured
that umbrella insurance organization's underlying liability policies do not cover.
A typically available cyber Regulatory action.
risk coverage that includes Correct. A typically available cyber risk coverage that
payment of fines and includes payment of fines and penalties is regulatory
penalties is action.
Which one of the following Although professional liability policies differ, most
statements about defense policies pay for defense costs as long as they fall within
coverage in the typical the limits of the policy.
professional liability Correct. Although professional liability policies differ,
insurance policy is most most policies pay for defense costs as long as they fall
accurate? within the limits of the policy.
,Samuel is a retired dentist The coverage will not apply because the claim did not
who practiced in the same arise out of the rendering or failing to render
town for thirty years. His professional dental services.
professional liability
coverage was with the
same insurer for the last ten
years of his career. The
policies were written on a
claims-made basis with a
retroactive date of January
1, 2001 and a five-year
extended reporting period.
Samuel cancelled his
professional liability policy
when he retired on July 1,
2011. On March 15, 2013 a
former patient filed a
sexual abuse claim against
Samuel. The alleged
incident occurred on
March 17, 2011. Which one
of the following best
describes how Samuel's
professional liability
coverage will respond?
Which one of the following An occurrence is an accident, including continuous or
terms contained in the HO- repeated exposure to the same general harmful
3 policy is defined as an conditions.
accident, including
continuous or repeated
exposure to the same
general harmful
conditions?
Which one of the following BOP eligibility rules are based on the size of the
statements is correct with business and the complexity of loss exposures.
respect to eligibility for
coverage under a
businessowners policy
(BOP)?
May cover some claims that are not covered by
Umbrella liability insurance
underlying liability insurance.
,Which one of the following A self-contained excess liability policy is subject only to
best describes the its own provisions.
differences between a
following-form excess
liability policy and a self-
contained excess liability
policy?
The named insured's separated spouse who resides and
All of the following are works in another state
included as insureds under Correct. All the people in the answer choices are
the Section II—Liability insureds under the policy except for the separated
Coverages of a spouse of the named insured who does not reside with
homeowners policy, the named insured. To qualify as an insured, the spouse
EXCEPT: of the named insured must be a resident of the same
household as the named insured.
Personal umbrella policies False Arrest
usually cover the insured's Under the Personal Umbrella Liability Policy, false arrest
liability for personal injury. is included under the definition of personal injury.
Under the Personal
Umbrella Liability Policy,
which one of the following
is included under the
definition of personal
injury?
Which one of the following Extended Reporting Periods
major sections of the Correct. The Extended Reporting Periods section is only
general liability coverage found in general liability forms with a claims-made
form would be found only trigger.
in a form with a claims-
made trigger?
A marketing employee inadvertently uses a copyrighted
In which one of the
photo on the WidgetCorp website.
following situations would
Correct. Media liability coverage relates to an
media liability cyber
organization's liability for material published on its own
coverage apply?
website.
, One of the three basic A combination excess liability policy.
forms of excess liability
insurance policies is
designed so that it
incorporates the provisions
of the underlying policy
and then modifies those
provisions with additional
conditions or exclusions in
the excess liability policy.
That type of excess liability
policy form is known as
Claims alleging property Architect professionals commonly encounter all three
damage, bodily injury, or varieties of claims.
financial loss are common
against some professionals.
Which one of the following
professionals is most likely
to encounter all three
varieties of claims?
Which one of the following Because they are more efficient, companies have turned
regarding the use of almost exclusively to recorded statements.
recorded statements is
most accurate?
To respond to common Chatbots powered by artificial intelligence are used to
customer inquiries such as answer questions and interact with customers online.
claims status updates, many
insurers are deploying
technology in the form of
With a few limited Pollution and environmental perils.
exceptions, commercial Correct. With a few limited exceptions, commercial
general liability policies general liability policies specifically exclude pollution
specifically exclude and environmental perils.
The law.
The liability of one party for
Correct. The liability of one party for the damages
the damages suffered by
suffered by another is based on the law, while coverage
another is based on
is based on insurance policy wording.
Save
Terms in this set (137)
One function of umbrella Covers some claims that the insured organization's
liability insurance that underlying liability policies do not cover.
differs from the functions of
excess liability insurance is Umbrella insurance covers some claims that the insured
that umbrella insurance organization's underlying liability policies do not cover.
A typically available cyber Regulatory action.
risk coverage that includes Correct. A typically available cyber risk coverage that
payment of fines and includes payment of fines and penalties is regulatory
penalties is action.
Which one of the following Although professional liability policies differ, most
statements about defense policies pay for defense costs as long as they fall within
coverage in the typical the limits of the policy.
professional liability Correct. Although professional liability policies differ,
insurance policy is most most policies pay for defense costs as long as they fall
accurate? within the limits of the policy.
,Samuel is a retired dentist The coverage will not apply because the claim did not
who practiced in the same arise out of the rendering or failing to render
town for thirty years. His professional dental services.
professional liability
coverage was with the
same insurer for the last ten
years of his career. The
policies were written on a
claims-made basis with a
retroactive date of January
1, 2001 and a five-year
extended reporting period.
Samuel cancelled his
professional liability policy
when he retired on July 1,
2011. On March 15, 2013 a
former patient filed a
sexual abuse claim against
Samuel. The alleged
incident occurred on
March 17, 2011. Which one
of the following best
describes how Samuel's
professional liability
coverage will respond?
Which one of the following An occurrence is an accident, including continuous or
terms contained in the HO- repeated exposure to the same general harmful
3 policy is defined as an conditions.
accident, including
continuous or repeated
exposure to the same
general harmful
conditions?
Which one of the following BOP eligibility rules are based on the size of the
statements is correct with business and the complexity of loss exposures.
respect to eligibility for
coverage under a
businessowners policy
(BOP)?
May cover some claims that are not covered by
Umbrella liability insurance
underlying liability insurance.
,Which one of the following A self-contained excess liability policy is subject only to
best describes the its own provisions.
differences between a
following-form excess
liability policy and a self-
contained excess liability
policy?
The named insured's separated spouse who resides and
All of the following are works in another state
included as insureds under Correct. All the people in the answer choices are
the Section II—Liability insureds under the policy except for the separated
Coverages of a spouse of the named insured who does not reside with
homeowners policy, the named insured. To qualify as an insured, the spouse
EXCEPT: of the named insured must be a resident of the same
household as the named insured.
Personal umbrella policies False Arrest
usually cover the insured's Under the Personal Umbrella Liability Policy, false arrest
liability for personal injury. is included under the definition of personal injury.
Under the Personal
Umbrella Liability Policy,
which one of the following
is included under the
definition of personal
injury?
Which one of the following Extended Reporting Periods
major sections of the Correct. The Extended Reporting Periods section is only
general liability coverage found in general liability forms with a claims-made
form would be found only trigger.
in a form with a claims-
made trigger?
A marketing employee inadvertently uses a copyrighted
In which one of the
photo on the WidgetCorp website.
following situations would
Correct. Media liability coverage relates to an
media liability cyber
organization's liability for material published on its own
coverage apply?
website.
, One of the three basic A combination excess liability policy.
forms of excess liability
insurance policies is
designed so that it
incorporates the provisions
of the underlying policy
and then modifies those
provisions with additional
conditions or exclusions in
the excess liability policy.
That type of excess liability
policy form is known as
Claims alleging property Architect professionals commonly encounter all three
damage, bodily injury, or varieties of claims.
financial loss are common
against some professionals.
Which one of the following
professionals is most likely
to encounter all three
varieties of claims?
Which one of the following Because they are more efficient, companies have turned
regarding the use of almost exclusively to recorded statements.
recorded statements is
most accurate?
To respond to common Chatbots powered by artificial intelligence are used to
customer inquiries such as answer questions and interact with customers online.
claims status updates, many
insurers are deploying
technology in the form of
With a few limited Pollution and environmental perils.
exceptions, commercial Correct. With a few limited exceptions, commercial
general liability policies general liability policies specifically exclude pollution
specifically exclude and environmental perils.
The law.
The liability of one party for
Correct. The liability of one party for the damages
the damages suffered by
suffered by another is based on the law, while coverage
another is based on
is based on insurance policy wording.
