AIC-M EXAM QUESTIONS AND
CORRECT ANSWERS. VERIFIED
2025/2026.
Which one of the following expresses how the mission statement usually differs from a vision
statement? - ANS A vision statement focuses on the future, while the mission statement
focuses on the present.
Which one of the following explains how organizational structures change over time? -
ANS Organizational structures respond to internal growth, profit goals, and the external
environment.
Which one of the following explains why communication to employees is critical to any
organization? - ANS Communication is critical to alignment in any organization.
Communication that is a continuous effort encouraging employee investment is similar to a
targeted marketing campaign creating awareness and affecting employee behavior.
Which one of the following describes how the culture and management style of an organization
affects its communications? - ANS Organizational culture determines the style of
communications. Organizations with a delegatory style of management will provide
communications that are broad and strategic, allowing employees to create their own way of
achieving goals. Directive managers will tell others what to do. Supportive management will
explain the rationale for goals and encourage employees to pursue related endeavors.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,Providing flexible work schedules is an effective way for a manager to - ANS Meet employees'
work-life balance needs.
Change initiatives should be divided into defined stages to allow the organization to implement
and adapt the change incrementally. To motivate the employees, successful implementation of
each stage should - ANS Be rewarded with some type of celebration.
In the mid-'90s, Daniel Goleman popularized the concept of emotional intelligence. He used the
term "empathy" to describe one's ability to - ANS Understand and develop others by
acknowledging their feelings, concerns, perspectives, and developmental needs.
Team members in successful process-oriented organizations trust each other, share sacrifices,
and coach and learn from each other. This is because - ANS Team members are equally
accountable for the team's output.
The primary purpose of the claims function is to - ANS Fulfill the insurer's promise.
Which one of the following statements is correct with respect to claimants' representation by
lawyers? - ANS For some types of claims and in certain areas of the U.S., claimants are more
likely to hire lawyers.
Which one of the following statements is correct regarding the marketing value of the claim
function? - ANS The claim adjusting process can be a source of new coverage ideas and
product niche innovations.
Which one of the following statements is correct regarding the relationship between risk control
and claims? - ANS The risk control department needs claim experience information to direct
loss-control resources and efforts to crucial areas.
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,Risk control can assist premium auditing by - ANS Reporting the existence of new operations.
Late one night, a car ran into Becky's parked car, and when she came out of her house, the car
backed up and left the scene. Candice, the claim representative, asks Becky if she remembers
anything specific about the car. Becky replies that it was blue. Candice notes the description and
thanks Becky for her help. A desirable quality that Candice could improve on the most is -
ANS Inquisitiveness.
Based on the age-to-age development factors in the table below, which one of the following
represents the factor that would be used to develop losses that are 12 months from maturity?
Assume that the analyst would use the average factors.
AccidentMonths of DevelopmentYear12-2424-3636-Final11.1001.0910.95821.1671.048 31.143
4- Average1.1371.0700.958 - ANS 0.958
Which one of the following statements is true regarding the establishment of loss reserves? -
ANS Case reserves are established by the claim department while IBNR reserves are
established by actuaries.
Which one of the following is an example of the "we find you" approach to soliciting candidates
for employment? - ANS Collaborating with an executive search firm
In determining employee results and behaviors through job analysis, each set of KSAs
(Knowledge, Skills and Attitudes) should be described in terms that suggest a way to -
ANS Measure or quantify them.
A 360-degree feedback system employs self-evaluation and peer appraisals delivered through -
ANS Anonymous employee surveys.
The most loyal employees are those who - ANS Believe in the organization's mission.
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, In a high-functioning virtual team, the role of the manager is best described as that of a -
ANS Facilitator.
Encouraging data sharing among teams and measuring an employee's teamwork are ways for a
manager to foster - ANS Employee unity.
Which one of the following is an example of an external stakeholder that does not have a
business relationship with an organization? - ANS Competitors
China is an example of a country where it may be difficult for actuaries to determine
appropriate financial reserves due to which one of the following? - ANS Lack of historical
data.
In establishing a global claims function, the staff will likely be hired in the country of operations
with the possible exception of - ANS Senior Managers.
Difficulty in direct supervision, communication issues and the time and cost of in-person
meetings are all challenges presented by - ANS Remote reporting relationships.
An insurer must plan to communicate its claim philosophy effectively before the plan will have
the intended results. An effectively communicated plan is one that receives buy-in from the
claims professionals, changes intended behaviors, and - ANS Improves performance.
Insurers define a claims philosophy as part of managing the claims function. Which one of the
following components of the claims philosophy ensures the philosophy is not vague and that it
is understood by the organization? - ANS Clear message
4 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
CORRECT ANSWERS. VERIFIED
2025/2026.
Which one of the following expresses how the mission statement usually differs from a vision
statement? - ANS A vision statement focuses on the future, while the mission statement
focuses on the present.
Which one of the following explains how organizational structures change over time? -
ANS Organizational structures respond to internal growth, profit goals, and the external
environment.
Which one of the following explains why communication to employees is critical to any
organization? - ANS Communication is critical to alignment in any organization.
Communication that is a continuous effort encouraging employee investment is similar to a
targeted marketing campaign creating awareness and affecting employee behavior.
Which one of the following describes how the culture and management style of an organization
affects its communications? - ANS Organizational culture determines the style of
communications. Organizations with a delegatory style of management will provide
communications that are broad and strategic, allowing employees to create their own way of
achieving goals. Directive managers will tell others what to do. Supportive management will
explain the rationale for goals and encourage employees to pursue related endeavors.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,Providing flexible work schedules is an effective way for a manager to - ANS Meet employees'
work-life balance needs.
Change initiatives should be divided into defined stages to allow the organization to implement
and adapt the change incrementally. To motivate the employees, successful implementation of
each stage should - ANS Be rewarded with some type of celebration.
In the mid-'90s, Daniel Goleman popularized the concept of emotional intelligence. He used the
term "empathy" to describe one's ability to - ANS Understand and develop others by
acknowledging their feelings, concerns, perspectives, and developmental needs.
Team members in successful process-oriented organizations trust each other, share sacrifices,
and coach and learn from each other. This is because - ANS Team members are equally
accountable for the team's output.
The primary purpose of the claims function is to - ANS Fulfill the insurer's promise.
Which one of the following statements is correct with respect to claimants' representation by
lawyers? - ANS For some types of claims and in certain areas of the U.S., claimants are more
likely to hire lawyers.
Which one of the following statements is correct regarding the marketing value of the claim
function? - ANS The claim adjusting process can be a source of new coverage ideas and
product niche innovations.
Which one of the following statements is correct regarding the relationship between risk control
and claims? - ANS The risk control department needs claim experience information to direct
loss-control resources and efforts to crucial areas.
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,Risk control can assist premium auditing by - ANS Reporting the existence of new operations.
Late one night, a car ran into Becky's parked car, and when she came out of her house, the car
backed up and left the scene. Candice, the claim representative, asks Becky if she remembers
anything specific about the car. Becky replies that it was blue. Candice notes the description and
thanks Becky for her help. A desirable quality that Candice could improve on the most is -
ANS Inquisitiveness.
Based on the age-to-age development factors in the table below, which one of the following
represents the factor that would be used to develop losses that are 12 months from maturity?
Assume that the analyst would use the average factors.
AccidentMonths of DevelopmentYear12-2424-3636-Final11.1001.0910.95821.1671.048 31.143
4- Average1.1371.0700.958 - ANS 0.958
Which one of the following statements is true regarding the establishment of loss reserves? -
ANS Case reserves are established by the claim department while IBNR reserves are
established by actuaries.
Which one of the following is an example of the "we find you" approach to soliciting candidates
for employment? - ANS Collaborating with an executive search firm
In determining employee results and behaviors through job analysis, each set of KSAs
(Knowledge, Skills and Attitudes) should be described in terms that suggest a way to -
ANS Measure or quantify them.
A 360-degree feedback system employs self-evaluation and peer appraisals delivered through -
ANS Anonymous employee surveys.
The most loyal employees are those who - ANS Believe in the organization's mission.
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, In a high-functioning virtual team, the role of the manager is best described as that of a -
ANS Facilitator.
Encouraging data sharing among teams and measuring an employee's teamwork are ways for a
manager to foster - ANS Employee unity.
Which one of the following is an example of an external stakeholder that does not have a
business relationship with an organization? - ANS Competitors
China is an example of a country where it may be difficult for actuaries to determine
appropriate financial reserves due to which one of the following? - ANS Lack of historical
data.
In establishing a global claims function, the staff will likely be hired in the country of operations
with the possible exception of - ANS Senior Managers.
Difficulty in direct supervision, communication issues and the time and cost of in-person
meetings are all challenges presented by - ANS Remote reporting relationships.
An insurer must plan to communicate its claim philosophy effectively before the plan will have
the intended results. An effectively communicated plan is one that receives buy-in from the
claims professionals, changes intended behaviors, and - ANS Improves performance.
Insurers define a claims philosophy as part of managing the claims function. Which one of the
following components of the claims philosophy ensures the philosophy is not vague and that it
is understood by the organization? - ANS Clear message
4 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
