AIC 30 Exam Qustions With 100%
Correct Answers Latest Exam
2025/2026
Anyone who is not a party to an insurance contract who submits a claim against an insured is known as
the ...ANSWER...third party
Anyone who submits a claim to an insurer may be called a ...ANSWER...claimant
The value of an insurance contract in the event of a claim is ...ANSWER...includes peace of mind
An insurance contract is designed to be all of the following in the event of a claim, EXCEPT
a) a financial mechanism that can benefit policyholders and other claimants
b) a means to provide a profit to the insured
c) a means to afford peace of mind to the insured
d) a way to restore a claimant to pre-loss condition ...ANSWER...b) a means to provide a profit to the
insured
The best description of a third-party claim is a claim ...ANSWER...made against the policyholder by
someone to whom the policyholder may be liable
The best description of a first-party claim is a claim ...ANSWER...made by the policyholder against the
insurer
One way for claim managers to help maintain an insurer's undewriting profit is to ...ANSWER...establish
appropriate spending policies
,An employee of an insurance company who performs some or all of the insurer's claim-handling
activities is called ...ANSWER...a staff claim representative
Incurred losses (including loss adjustment expenses) divided by earned premium is the formula
for ...ANSWER...loss ratio
All of the following correctly descriptive reasons for the use of independent, EXCEPT
a) insurers pay use independent adjusters when special skills and expertise are needed, for example to
investigate aircraft accidents
b) in the case of a catastrophic loss such as a hurricane, an insurer may not have sufficient staff to
manage the large number of claims, and may use independent adjusters
c) in some areas it is not economically feasible to set up claim offices, and insurers may contract with
independent adjusters to handle claims in these remote areas
d) the insured may retain an independent adjuster if settlement negotiations with the insurer are not
progressing satisfactorily ...ANSWER...d) the insured may retain an independent adjuster if settlement
negotiations with the insurer are not progressing satisfactorily
Under certain circumstances, an insurer ma authorize the adjustment of claims by producers. One of the
benefits of providing producers with draft authority is that ...ANSWER...if an agent can issue a draft
directly to the insured, it reduces the time an insured waits for payment
An insurance company employee who investigates the scene of a loss; meets with insureds, claimant,
lawyers, and others; and inspects damage is most accurately called ...ANSWER...a field claim
representative
People who handle claims fall into a number of categories Those who handle claims, keep claim records,
and perform statistical analysis on behalf of self-insureds are called ...ANSWER...third-party
administrators
People who handle claims may be staff claim representatives, independent adjusters, employees of
third-party administrators, or ...ANSWER...producers who sell policies to insureds
, Juanita is the senior claim officer for Worthy Insurance Company, which uses the claim audit as a
performance measure for its claim operations. Claim audits usually evaluate both quantitative and
qualitative factors. Which one of the following facts is qualitative for Juanita and her staff?
a) percentage of recovery from subrogation
b) accurate evaluation of insured's liability
c) average claim settlement value by claim type
d) accuracy and completeness of data entry ...ANSWER...b) accurate evaluation of insured's liability
Jerry is an experienced claim adjuster who handles claims for jackson Insurance company during
hurricane season when Jackson's staff adjusters need assistance. Jerry is a(n) ...ANSWER...independent
adjuster
If a claim is complex or if settlement negotiations are not progressing with the insurer, the insured may
hire a(n) ...ANSWER...public adjuster
Most insurers give some producers the authority to pay claims up to a certain amount. In this role,
producers function much like a(n) ...ANSWER...inside claim representative
Insurers and claim representatives are bound by the insurance contract to act in good faith. They must
keep the promises specified in insurance policies, as well as those created by the law. In insurance
transactions, the insured pays a premium for the insurer's promise to ...ANSWER...act in good faith
Ethics and professionalism are of utmost importance for insurers and claim representatives
because ...ANSWER...claim representatives' behavior can affect public trust in and credibility or insurers
In which one of the following ways can a claim representative's unethical or unprofessional conduct
affect the insurer adversely?
a) unethical or unprofessional behavior results in an abuse of consumer privacy issues that exposes the
insurer t public scrutiny and potential litigation
b) unethical behavior on the part of the claim rep generally leads to a capital or surplus drain having an
adverse financial impact for the insurer
Correct Answers Latest Exam
2025/2026
Anyone who is not a party to an insurance contract who submits a claim against an insured is known as
the ...ANSWER...third party
Anyone who submits a claim to an insurer may be called a ...ANSWER...claimant
The value of an insurance contract in the event of a claim is ...ANSWER...includes peace of mind
An insurance contract is designed to be all of the following in the event of a claim, EXCEPT
a) a financial mechanism that can benefit policyholders and other claimants
b) a means to provide a profit to the insured
c) a means to afford peace of mind to the insured
d) a way to restore a claimant to pre-loss condition ...ANSWER...b) a means to provide a profit to the
insured
The best description of a third-party claim is a claim ...ANSWER...made against the policyholder by
someone to whom the policyholder may be liable
The best description of a first-party claim is a claim ...ANSWER...made by the policyholder against the
insurer
One way for claim managers to help maintain an insurer's undewriting profit is to ...ANSWER...establish
appropriate spending policies
,An employee of an insurance company who performs some or all of the insurer's claim-handling
activities is called ...ANSWER...a staff claim representative
Incurred losses (including loss adjustment expenses) divided by earned premium is the formula
for ...ANSWER...loss ratio
All of the following correctly descriptive reasons for the use of independent, EXCEPT
a) insurers pay use independent adjusters when special skills and expertise are needed, for example to
investigate aircraft accidents
b) in the case of a catastrophic loss such as a hurricane, an insurer may not have sufficient staff to
manage the large number of claims, and may use independent adjusters
c) in some areas it is not economically feasible to set up claim offices, and insurers may contract with
independent adjusters to handle claims in these remote areas
d) the insured may retain an independent adjuster if settlement negotiations with the insurer are not
progressing satisfactorily ...ANSWER...d) the insured may retain an independent adjuster if settlement
negotiations with the insurer are not progressing satisfactorily
Under certain circumstances, an insurer ma authorize the adjustment of claims by producers. One of the
benefits of providing producers with draft authority is that ...ANSWER...if an agent can issue a draft
directly to the insured, it reduces the time an insured waits for payment
An insurance company employee who investigates the scene of a loss; meets with insureds, claimant,
lawyers, and others; and inspects damage is most accurately called ...ANSWER...a field claim
representative
People who handle claims fall into a number of categories Those who handle claims, keep claim records,
and perform statistical analysis on behalf of self-insureds are called ...ANSWER...third-party
administrators
People who handle claims may be staff claim representatives, independent adjusters, employees of
third-party administrators, or ...ANSWER...producers who sell policies to insureds
, Juanita is the senior claim officer for Worthy Insurance Company, which uses the claim audit as a
performance measure for its claim operations. Claim audits usually evaluate both quantitative and
qualitative factors. Which one of the following facts is qualitative for Juanita and her staff?
a) percentage of recovery from subrogation
b) accurate evaluation of insured's liability
c) average claim settlement value by claim type
d) accuracy and completeness of data entry ...ANSWER...b) accurate evaluation of insured's liability
Jerry is an experienced claim adjuster who handles claims for jackson Insurance company during
hurricane season when Jackson's staff adjusters need assistance. Jerry is a(n) ...ANSWER...independent
adjuster
If a claim is complex or if settlement negotiations are not progressing with the insurer, the insured may
hire a(n) ...ANSWER...public adjuster
Most insurers give some producers the authority to pay claims up to a certain amount. In this role,
producers function much like a(n) ...ANSWER...inside claim representative
Insurers and claim representatives are bound by the insurance contract to act in good faith. They must
keep the promises specified in insurance policies, as well as those created by the law. In insurance
transactions, the insured pays a premium for the insurer's promise to ...ANSWER...act in good faith
Ethics and professionalism are of utmost importance for insurers and claim representatives
because ...ANSWER...claim representatives' behavior can affect public trust in and credibility or insurers
In which one of the following ways can a claim representative's unethical or unprofessional conduct
affect the insurer adversely?
a) unethical or unprofessional behavior results in an abuse of consumer privacy issues that exposes the
insurer t public scrutiny and potential litigation
b) unethical behavior on the part of the claim rep generally leads to a capital or surplus drain having an
adverse financial impact for the insurer
