AIC 304 UPDATED EVALUATION TEST QUESTIONS
AND ANSWERS SURE A+
✔✔After a potentially responsible third party is identified, a claims rep should investigate
the potential opportunity for subrogation - ✔✔A. At the same time as the loss
investigation.
B. Upon presenting a settlement amount to the insured.
C. After the loss is settled.
D. After the loss investigation is complete
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
B. Squeeze
C. Cratering
D. Cave-in
C
✔✔A claims rep is most likely to use the book value method to determine cost of goods
sold for a loss involving - ✔✔A. Merchandise stored at multiple locations.
B. Antiques or other hard-to-value items.
, C. Suspected arson.
D. Out-of-sight merchandise.
D
✔✔Shelton Manufacturing has an annual transit policy to cover the goods that it ships
from its manufacturing facility to its buyers. Which one of the following methods would
be used for the valuation of goods damaged while in transit? - ✔✔A. The actual cost
value
B. The amount indicated on the invoice excluding the shipping charges
C. The replacement cost value
D. The amount indicated on the invoice including the shipping charges
D
✔✔Public adjusters are most often involved in - ✔✔A. Water damage claims.
B. Fire claims.
C. Workers' compensation claims.
D. Liability claims.
B
✔✔Market valuation is particularly useful in an insurance loss when an object - ✔✔A.
Has no real replacement cost.
B. Is especially new.
C. Is an easily-replaced commodity.
D. Is a car or other vehicle.
A
✔✔In what way are the Peak Season and Value Reporting Form endorsements similar?
- ✔✔A. Both forms provide a way to avoid over-insuring or under-insuring fluctuating
merchandise values.
B. Both forms are used for seasonal type business operations.
C. Both forms provide differing amounts of insurance for selected time periods
throughout the year.
D. Both forms contain a penalty clause for inaccurate reporting.
A
✔✔Megan was assigned a large builders risk claim for Fargo General Contracting
(FGC). After talking with the site superintendent, she learns that a subcontractor doing
plumbing work may be responsible for starting the fire that caused the loss. Megan
immediately asks for a copy of the contract agreement between FGC and the
AND ANSWERS SURE A+
✔✔After a potentially responsible third party is identified, a claims rep should investigate
the potential opportunity for subrogation - ✔✔A. At the same time as the loss
investigation.
B. Upon presenting a settlement amount to the insured.
C. After the loss is settled.
D. After the loss investigation is complete
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
B. Squeeze
C. Cratering
D. Cave-in
C
✔✔A claims rep is most likely to use the book value method to determine cost of goods
sold for a loss involving - ✔✔A. Merchandise stored at multiple locations.
B. Antiques or other hard-to-value items.
, C. Suspected arson.
D. Out-of-sight merchandise.
D
✔✔Shelton Manufacturing has an annual transit policy to cover the goods that it ships
from its manufacturing facility to its buyers. Which one of the following methods would
be used for the valuation of goods damaged while in transit? - ✔✔A. The actual cost
value
B. The amount indicated on the invoice excluding the shipping charges
C. The replacement cost value
D. The amount indicated on the invoice including the shipping charges
D
✔✔Public adjusters are most often involved in - ✔✔A. Water damage claims.
B. Fire claims.
C. Workers' compensation claims.
D. Liability claims.
B
✔✔Market valuation is particularly useful in an insurance loss when an object - ✔✔A.
Has no real replacement cost.
B. Is especially new.
C. Is an easily-replaced commodity.
D. Is a car or other vehicle.
A
✔✔In what way are the Peak Season and Value Reporting Form endorsements similar?
- ✔✔A. Both forms provide a way to avoid over-insuring or under-insuring fluctuating
merchandise values.
B. Both forms are used for seasonal type business operations.
C. Both forms provide differing amounts of insurance for selected time periods
throughout the year.
D. Both forms contain a penalty clause for inaccurate reporting.
A
✔✔Megan was assigned a large builders risk claim for Fargo General Contracting
(FGC). After talking with the site superintendent, she learns that a subcontractor doing
plumbing work may be responsible for starting the fire that caused the loss. Megan
immediately asks for a copy of the contract agreement between FGC and the
