AIC 304 Questions and Correct Answers
Scope
Ans: A list of the areas damaged that includes the type of damage, a
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description of the proposed action to take regarding the damaged property
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(such as repair, replace, remove, or demolish), and the area's
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measurements.
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Nonwaiver agreement ||
Ans: A signed agreement indicating that during the course of investigation,
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neither the insurer nor the insured waives rights under the policy
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Insurable interest ||
Ans: An interest in the subject of an insurance policy that is not unduly
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remote and that would cause the interested party to suffer financial loss if
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an insured event occurred.
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Bailee
Ans: || The party temporarily possessing the personal property in a bailment.
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Trustee
Ans: Someone who has the legal title to a property but is responsible for
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ensuring that it be used, handled, and transferred solely for the benefit of
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the beneficiary.
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Security interest ||
Ans: An interest in property (real or personal) that allows the property
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to be sold on default to satisfy the debt for which the security interest
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was given.
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,
, Public adjuster
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Ans: An outside organization or person hired by an insured to represent
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the insured in a claim in exchange for a fee.
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Business income insurance
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Ans: Insurance that covers the reduction in an organization's income when
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operations are interrupted by damage to property caused by a covered peril.
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Business interruption
||
Ans: Loss of revenue that a business or another organization sustains
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because its operations are suspended as a result of physical injury to its
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property
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Net income
||
Ans: The difference between revenues (such as money received for goods or
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services) and expenses (such as money paid for merchandise, rent, and insurance).
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Profit
Ans: | | Net income that results when revenues exceed expenses.
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Net loss
||
Ans: | | Net income that results when expenses exceed revenues.
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Continuing expenses ||
Ans: Expenses that continue to be incurred during a business interruption.
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|| Noncontinuing expenses ||
Scope
Ans: A list of the areas damaged that includes the type of damage, a
| | || || || || || || || || || || || ||
description of the proposed action to take regarding the damaged property
|| || || || || || || || || || ||
(such as repair, replace, remove, or demolish), and the area's
|| || || || || || || || || ||
measurements.
||
Nonwaiver agreement ||
Ans: A signed agreement indicating that during the course of investigation,
| | || || || || || || || || ||
neither the insurer nor the insured waives rights under the policy
|| || || || || || || || || || ||
Insurable interest ||
Ans: An interest in the subject of an insurance policy that is not unduly
| | || || || || || || || || || || || ||
remote and that would cause the interested party to suffer financial loss if
|| || || || || || || || || || || || ||
an insured event occurred.
|| || || ||
Bailee
Ans: || The party temporarily possessing the personal property in a bailment.
|| || || || || || || || ||
Trustee
Ans: Someone who has the legal title to a property but is responsible for
| | || || || || || || || || || || || ||
ensuring that it be used, handled, and transferred solely for the benefit of
|| || || || || || || || || || || || ||
the beneficiary.
|| ||
Security interest ||
Ans: An interest in property (real or personal) that allows the property
| | || || || || || || || || || ||
to be sold on default to satisfy the debt for which the security interest
|| || || || || || || || || || || || || ||
was given.
|| ||
,
, Public adjuster
||
Ans: An outside organization or person hired by an insured to represent
| | || || || || || || || || || ||
the insured in a claim in exchange for a fee.
|| || || || || || || || || ||
Business income insurance
|| ||
Ans: Insurance that covers the reduction in an organization's income when
| | || || || || || || || || ||
operations are interrupted by damage to property caused by a covered peril.
|| || || || || || || || || || || ||
Business interruption
||
Ans: Loss of revenue that a business or another organization sustains
| | || || || || || || || || ||
because its operations are suspended as a result of physical injury to its
|| || || || || || || || || || || || ||
property
||
Net income
||
Ans: The difference between revenues (such as money received for goods or
| | || || || || || || || || || ||
services) and expenses (such as money paid for merchandise, rent, and insurance).
|| || || || || || || || || || || ||
Profit
Ans: | | Net income that results when revenues exceed expenses.
|| || || || || || ||
Net loss
||
Ans: | | Net income that results when expenses exceed revenues.
|| || || || || || ||
Continuing expenses ||
Ans: Expenses that continue to be incurred during a business interruption.
| | || || || || || || || || ||
|| Noncontinuing expenses ||
