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AIC 304 EXAM NEWEST 2025 ACTUAL EXAM TEST
BANK| COMPLETE 300 REAL EXAM QUESTIONS AND
CORRECT VERIFIED ANSWERS/ ALREADY GRADED
A+ (BRAND NEW!!)
The process of reviewing actual incurred expenses and partial sales
against projections done before the end of the loss period is called
A. Cross-checking.
B. Auditing.
C. Expense verification.
D. Reconciliation. -Correct Answer- D
Annual transit policies and trip transit policies typically use which one
of the following methods to value shipments between a seller and a
buyer?
A. Invoice price
B. Original cost
C. Selling price
D. Market value -Correct Answer- A
In business income insurance, the expenses that an organization would
not have incurred if the business interruption had not occurred are called
A. Continuing expenses.
B. Excludable expenses.
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C. Extra expenses.
D. Contingent expenses. -Correct Answer- C
Adam is adjusting a claim for fire damage to insured property and has
gathered the following facts: multiple fires were involved; the building
typically contained flammable materials; the insured's full warehouse of
inventory was damaged; and the fire protection system sounded
normally. Which one of Adam's findings could lead him to believe the
fire was incendiary?
A. Flammable materials
B. Fire protection system
C. Damaged inventory
D. Multiple fires -Correct Answer- D
Alterations or additions made to the building at the expense of an
insured who does not own the building and who cannot legally remove
them are referred to as
A. Improvements and betterments.
B. Leaseholder enhancements.
C. Personal property of others.
D. Building fixtures and fittings. -Correct Answer- A
Francesca is handling a claim for theft of property. She has asked the
insured to provide documentation of the theft of his television. The
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insured provided copies of the warranty, the instruction manual, a photo
of the television in his house, and the original receipt. Which one of the
following pieces of documentation provided by the policyholder does
Francesca considers to be the best?
A. Photograph
B. Instruction manual
C. Warranty
D. Original receipt -Correct Answer- D
The Loss Determination condition in the ISO Business Income (and
Extra Expense) Coverage Form and the ISO Extra Expense Coverage
Form states that the amount of extra expense consists of all expenses in
excess of normal operating expenses. From this total, the insurer deducts
A. The salvage value of temporary property.
B. Property taxes for a temporary location.
C. Payroll costs for temporary labor.
D. Utility costs for a temporary location. -Correct Answer- A
Samuel has property coverage for his beach house that includes the
standard water exclusion. During a major storm, the property was
damaged by waves that crested a dune; flooding from torrential rain; a
fire, which required firefighters to spray water to extinguish; and a
mudslide from a nearby hill that washed away. Which one of the
following sources of water damage would Samuel determine is covered
by the policy?
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A. Water from fire hose
B. Mudslide from hill
C. Flooding from rain
D. Waves from ocean -Correct Answer- A
In determining ACV, the broad evidence rule explicitly requires claims
reps handling property losses to
A. Consider market value only.
B. Consider all relevant factors.
C. Consider the full indemnity of the insured.
D. Consider depreciation only. -Correct Answer- B
The appraisal provision in an insurance policy covering property is used
to resolve issues involving
A. Amount of loss.
B. Exclusions and/or endorsements.
C. Coverage questions.
D. Policy interpretation. -Correct Answer- A
A contractors equipment policy insuring oil or natural gas well-drilling
rigs would require coverage for which one of the following perils in
addition to the specified perils coverage typically provided?
A. Explosion
pg. 4
AIC 304 EXAM NEWEST 2025 ACTUAL EXAM TEST
BANK| COMPLETE 300 REAL EXAM QUESTIONS AND
CORRECT VERIFIED ANSWERS/ ALREADY GRADED
A+ (BRAND NEW!!)
The process of reviewing actual incurred expenses and partial sales
against projections done before the end of the loss period is called
A. Cross-checking.
B. Auditing.
C. Expense verification.
D. Reconciliation. -Correct Answer- D
Annual transit policies and trip transit policies typically use which one
of the following methods to value shipments between a seller and a
buyer?
A. Invoice price
B. Original cost
C. Selling price
D. Market value -Correct Answer- A
In business income insurance, the expenses that an organization would
not have incurred if the business interruption had not occurred are called
A. Continuing expenses.
B. Excludable expenses.
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,2|Page
C. Extra expenses.
D. Contingent expenses. -Correct Answer- C
Adam is adjusting a claim for fire damage to insured property and has
gathered the following facts: multiple fires were involved; the building
typically contained flammable materials; the insured's full warehouse of
inventory was damaged; and the fire protection system sounded
normally. Which one of Adam's findings could lead him to believe the
fire was incendiary?
A. Flammable materials
B. Fire protection system
C. Damaged inventory
D. Multiple fires -Correct Answer- D
Alterations or additions made to the building at the expense of an
insured who does not own the building and who cannot legally remove
them are referred to as
A. Improvements and betterments.
B. Leaseholder enhancements.
C. Personal property of others.
D. Building fixtures and fittings. -Correct Answer- A
Francesca is handling a claim for theft of property. She has asked the
insured to provide documentation of the theft of his television. The
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insured provided copies of the warranty, the instruction manual, a photo
of the television in his house, and the original receipt. Which one of the
following pieces of documentation provided by the policyholder does
Francesca considers to be the best?
A. Photograph
B. Instruction manual
C. Warranty
D. Original receipt -Correct Answer- D
The Loss Determination condition in the ISO Business Income (and
Extra Expense) Coverage Form and the ISO Extra Expense Coverage
Form states that the amount of extra expense consists of all expenses in
excess of normal operating expenses. From this total, the insurer deducts
A. The salvage value of temporary property.
B. Property taxes for a temporary location.
C. Payroll costs for temporary labor.
D. Utility costs for a temporary location. -Correct Answer- A
Samuel has property coverage for his beach house that includes the
standard water exclusion. During a major storm, the property was
damaged by waves that crested a dune; flooding from torrential rain; a
fire, which required firefighters to spray water to extinguish; and a
mudslide from a nearby hill that washed away. Which one of the
following sources of water damage would Samuel determine is covered
by the policy?
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A. Water from fire hose
B. Mudslide from hill
C. Flooding from rain
D. Waves from ocean -Correct Answer- A
In determining ACV, the broad evidence rule explicitly requires claims
reps handling property losses to
A. Consider market value only.
B. Consider all relevant factors.
C. Consider the full indemnity of the insured.
D. Consider depreciation only. -Correct Answer- B
The appraisal provision in an insurance policy covering property is used
to resolve issues involving
A. Amount of loss.
B. Exclusions and/or endorsements.
C. Coverage questions.
D. Policy interpretation. -Correct Answer- A
A contractors equipment policy insuring oil or natural gas well-drilling
rigs would require coverage for which one of the following perils in
addition to the specified perils coverage typically provided?
A. Explosion
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