AIC 303 BEST PRACTICE EXAM WITH CORRECT ANSWERS GUARANTEE SUCCESS 2025

AIC 303 BEST PRACTICE EXAM WITH CORRECT ANSWERS GUARANTEE SUCCESS 2025 Because claims reps are sometimes too busy to pay enough attention to subrogation claims, many insurers pursue subrogation by using A. Subrogation specialists in a centralized unit. B. Artificial intelligence to identify likely claims for subrogation. C. In-house legal counsel. D. Outsourced claims managers. A. Subrogation specialists in a centralized unit. Maja needs a computer to write a paper for school, but hers is not working. So she borrows Vincente's computer and offers him no compensation. In this situation, Maja owes Vincente a duty of A. Slight care. B. No care. C. Great care. D. Ordinary care. C. Great care. Mehmet was seriously injured in an automobile collision and died after a stay in the hospital. His family is bringing a survival action claim for medical expenses, pain and suffering, loss of earnings, and automobile repairs. Which one of the following claims will be allowed only if the family can demonstrate that Mehmet was conscious after the accident but before dying? A. Medical expenses B. Automobile repairs C. Loss of earnings D. Pain and suffering D. Pain and suffering AIC 303 AIC 303 Shota serves drinks to Nanami at his tavern. Nanami leaves the bar and drives home. On the way, she gets into an accident and injures Cian, who retains an attorney. The attorney's most likely course of action will be to allege that A. Nanami was inside the tavern before she drove her car. B. Shota served Nanami when she was visibly intoxicated. C. The alcohol manufacturer is liable for the effects of its product. D. Nanami's auto policy is primary in covering Cian's medical bills. B. Shota served Nanami when she was visibly intoxicated. Anna injured her back in a not-at-fault auto accident and has a bodily injury claim with the other driver's insurance company. Later, she fell and her back injury was aggravated. Her claims representative for the first accident told her that the aggravation of her back injury A. Was covered because it was a chronic condition. B. Was covered because it was an unavoidable consequence of the back injury. C. Was not covered because it was not an unavoidable consequence of the back injury. D. Was not covered because it was an intervening problem. B. Was covered because it was an unavoidable consequence of the back injury. What is it called when two or more parties enter a contract? Privity of Contract A physician is visiting Guatemala after a major disaster to administer aid. A patient with a large laceration requiring stitches develops an infection that is believed to be due to unsterilized equipment. The patient intends to file suit against the physician. In order for the loss to be covered under a typical professional liability policy, the A. Loss would have to occur in the United States or Canada. B. Policy must list Guatemala under the coverage territory. C. Patient must file suit in the United States or Canada. D. Patient must file suit in Guatemala where the loss occurred C. Patient must file suit in the United States or Canada. Luke is handling a bodily injury claim and is determining the following: ongoing pain and/or inconvenience, future medical bills/issues, effect on future earnings, and effect on future lifestyle. On which one of the following sections of the bodily injury plan is AIC 303 AIC 303 Luke working? A. Identify the mechanism of injury B. When scarring is claimed C. Identify the injuries claimed D. When permanency is being claimed D. When permanency is being claimed Jack and Linda are meeting with their insurance agent to review their homeowners and auto policies. The agent has suggested that they add an umbrella policy. Which one of the following is the best reason the agent will likely provide for purchasing this coverage? A. To provide increased limits for large jury awards B. To provide an increased limits policy with no exclusions C. To avoid any retained limits for the broader coverage D. To offset the deductibles on their other policies A. To provide increased limits for large jury awards Cristobal has several methods available to him as he evaluates the settlement range for his claim: individual case method, roundtable technique, formula method, and expert system. Which method should Cristobal use if he is dealing with a minor soft tissue claim and wants a simple approach to achieve an early, mutually agreeable settlement? A. Individual case method B. Expert system C. Roundtable technique D. Formula method D. Formula method Which one of the following is true regarding personal umbrella policy conditions? A. The umbrella policy will not pay anything in the event of a loss if the underlying insurance is not maintained. B. The umbrella policy provides excess coverage over any other insurance, whether it is collectible or not. C. The policy territory is limited to the country where the policyholder resides. D. The insured must give the insurer written notice of loss within 12 hours. AIC 303 AIC 303 B. The umbrella policy provides excess coverage over any other insurance, whether it is collectible or not. One of the basic forms for an excess liability policy that is subject to the same provisions as the underlying liability policy is the A. Manuscript form. B. Monoline form. C. Self-contained form. D. Following-form. D. Following-form. Francesca's car was damaged in an auto accident. Afterwards, Francesca did not take the car to be fixed promptly. As a result, rain entered the car's interior through the broken windows and caused more damage. At trial, the court did not allow Francesca to collect money for the rain damage. Which one of the following rules did the court impose on Francesca? A. Excessive damages rule B. Compensatory damages rule C. Collateral source rule D. Mitigation of damages rule D. Mitigation of damages rule Jose was injured in an auto accident caused by the other driver. Jose's injuries were covered by his medical insurance. At trial, the court did not allow the insurer to reduce Jose's award by the amount his medical insurance paid. Its decision was based on the A. Mitigation of damages rule. B. Excessive damages rule. C. Collateral source rule. D. Compensatory damages rule C. Collateral source rule. Adam is walking through a mall and texting on his phone at the same time. In the center of the mall, he walks into the fountain and falls, injuring his arm and head. Adam would most likely be able to receive A. Nothing because he was at fault. AIC 303 AIC 303 B. Medical payments up to $10,000. C. Damages for the mall owner's negligence. D. Unlimited medical payments. Medical payments up to $10,000 Francesca hires James to replace the wooden stairs to her back door. After James installed the stairs and he had been paid, the stairs collapsed while Francesca's family was climbing them. Francesca's attorney sued James for the family members' damages using the legal theory of A. Completed operations liability. B. Class actions. C. Professional liability. D. Implied warranty of merchantability. A. Completed operations liability. Janine rents an apartment from a landlord. Her lease contains a clause requiring her to indemnify the landlord for any damages for which she is responsible. This is an example of a A. Subrogation clause. B. Hold-harmless agreement. C. Contribution clause. D. Tort obligation. B. Hold-harmless agreement. Katarina was injured when she tripped and fell while on Rodrigo's property. In order for Rodrigo to be liable for Katarina's injury, she must prove that Rodrigo A. Had constructive knowledge of the hazard before her injury. B. Breached a duty owed to her through his action or inaction. C. Intentionally caused her injury through his inaction. D. Knew about the hazard because her injury was foreseeable. B. Breached a duty owed to her through his action or inaction Luis is completing an impairment rating report for a patient. This includes the anticipated effect of the medical condition on the patient's daily activities, a comparison of clinical findings with the AMA guide's criteria, his conclusion on whether the medical condition AIC 303 AIC 303 will result in incapacitation, and the expected recovery date and prediction of full or partial recovery. Which one of the following is a component of Luis's report relating to the impairment criteria? A. Conclusion on whether the medical condition will result in incapacitation B. Comparison of clinical findings with the AMA guide's criteria C. Anticipated effect of the medical condition on the patient's daily activities D. Expected recovery date and prediction of full or partial recovery B. Comparison of clinical findings with the AMA guide's criteria Aaron is a claims representative who has completed an investigation of a bodily injury claim. Throughout the process, he gathered injury information and documents; monitored and updated the plan; assessed treatment, disability, and impairment; and analyzed records and reports. The first step in Aaron's investigation was to A. Gather injury information and documents. B. Monitor and update the plan. C. Analyze records and reports. D. Assess treatment, disability, and impairment. A. Gather injury information and documents. Which one of the following losses would be the most likely to be paid under a marine protection and indemnity insurance policy? A. Expenses incurred to return an injured crew member to his sign-on port B. The portion of a general average loss assigned to the shipowner C. Damage to another vessel caused by an at-fault collision D. Losses to cargo following seizure of the vessel by pirates A. Expenses incurred to return an injured crew member to his sign-on port For evidence to be admitted by a court, it must be relevant, competent, an A. Material. B. Timely. C. Unimpeachable. D. Credible. A. Material. AIC 303 AIC 303 Fernanda is a defense attorney for an insurer. She is working on a claim in which the claimant was injured in an accident and is claiming to have depression and anxiety as a result. Fernanda was able to uncover records of the claimant's treatment for depression and anxiety several years before the accident. Fernanda's defense should be that A. The condition is not related to the accident. B. The condition is the progression of a preexisting condition. C. The condition existed before the injury. D. Other causes for the psychological condition exist. C. The condition existed before the injury. Over time, courts have expanded the reasons for allowing a lawsuit, called A. Acceptable causes of action. B. Torts. C. Liabilities. D. Pleadings. A. Acceptable causes of action. Fatima was a passenger on an airplane when one of the other passengers became agitated and began behaving erratically. Before the flight attendants were able to subdue him, the passenger struck Fatima in the face. Fatima hires Luke to represent her in her claim against the airline. Luke bases his suit on which one of the following legal theories? A. Voluntary assumption of liability B. Statutory duty to provide security C. Special relationship D. Special circumstances C. Special relationship Leila is estimating settlement values for a claim that is going to a jury trial. She estimates the settlement range to be $20,000 to $40,000. She further estimates that the trial venue is likely to increase any award by 50 percent. Leila's settlement estimate should then be A. $10,000 to $20,000. B. $20,000 to $40,000. AIC 303 AIC 303 C. $30,000 to $60,000. D. $40,000 to $80,00 C. $30,000 to $60,000. Magnus goes to a bicycle shop and buys a mountain bike from the "Off-road Bikes" section of the store. During his first off-road excursion with the bicycle, the front wheel bends and Magnus is thrown from the bike resulting in multiple injuries. Magnus could bring a products liability lawsuit against the bicycle shop because of the A. Implied warranty of merchantability. B. Uniform Commercial Code. C. Express warranty. D. Misrepresentation. A. Implied warranty of merchantability. Seriously injured in an auto accident, Damien accepts a settlement agreement that offers some immediate payment, with the bulk of the payment disbursed over a number of years. This is called a(n) A. Deferred settlement. B. Structured settlement. C. Incremental settlement. D. Installment settlement. B. Structured settlement. Juan is calculating a settlement in an auto liability claim and is determining a reasonable estimate of the damages the claimant is likely to be able to prove. In estimating the initial probable verdict range, Juan bases his calculations A. On provable damages, including considerations for liability and other variables. B. On likely damages, liability, and characteristics of the insured, claimant, and venue. C. Solely on the predictive values based on similar cases in his experience. D. Solely on provable damages without considering liability or other variables. D. Solely on provable damages without considering liability or other variables. Conor is handling an auto claim involv