AIC 301 CERTIFICATION EVALUATION
EXAMS SCRIPT STUDY GUIDE WITH
SOLVED QUESTIONS
⩥ A typically available cyber risk coverage that includes payment of
fines and penalties is.
Answer: Regulatory action.
Correct. A typically available cyber risk coverage that includes payment
of fines and penalties is regulatory action.
⩥ Which one of the following statements about defense coverage in the
typical professional liability insurance policy is most accurate?.
Answer: Although professional liability policies differ, most policies pay
for defense costs as long as they fall within the limits of the policy.
Correct. Although professional liability policies differ, most policies pay
for defense costs as long as they fall within the limits of the policy.
⩥ Samuel is a retired dentist who practiced in the same town for thirty
years. His professional liability coverage was with the same insurer for
the last ten years of his career. The policies were written on a claims-
made basis with a retroactive date of January 1, 2001 and a five-year
extended reporting period. Samuel cancelled his professional liability
policy when he retired on July 1, 2011. On March 15, 2013 a former
patient filed a sexual abuse claim against Samuel. The alleged incident
,occurred on March 17, 2011. Which one of the following best describes
how Samuel's professional liability coverage will respond?.
Answer: The coverage will not apply because the claim did not arise out
of the rendering or failing to render professional dental services.
⩥ Which one of the following terms contained in the HO-3 policy is
defined as an accident, including continuous or repeated exposure to the
same general harmful conditions?.
Answer: An occurrence is an accident, including continuous or repeated
exposure to the same general harmful conditions.
⩥ Which one of the following statements is correct with respect to
eligibility for coverage under a businessowners policy (BOP)?.
Answer: BOP eligibility rules are based on the size of the business and
the complexity of loss exposures.
⩥ Umbrella liability insurance.
Answer: May cover some claims that are not covered by underlying
liability insurance.
⩥ Which one of the following best describes the differences between a
following-form excess liability policy and a self-contained excess
liability policy?.
Answer: A self-contained excess liability policy is subject only to its
own provisions.
,⩥ All of the following are included as insureds under the Section II—
Liability Coverages of a homeowners policy, EXCEPT:.
Answer: The named insured's separated spouse who resides and works
in another state
Correct. All the people in the answer choices are insureds under the
policy except for the separated spouse of the named insured who does
not reside with the named insured. To qualify as an insured, the spouse
of the named insured must be a resident of the same household as the
named insured.
⩥ Personal umbrella policies usually cover the insured's liability for
personal injury. Under the Personal Umbrella Liability Policy, which one
of the following is included under the definition of personal injury?.
Answer: False Arrest
Under the Personal Umbrella Liability Policy, false arrest is included
under the definition of personal injury.
⩥ Which one of the following major sections of the general liability
coverage form would be found only in a form with a claims-made
trigger?.
Answer: Extended Reporting Periods
Correct. The Extended Reporting Periods section is only found in
general liability forms with a claims-made trigger.
, ⩥ In which one of the following situations would media liability cyber
coverage apply?.
Answer: A marketing employee inadvertently uses a copyrighted photo
on the WidgetCorp website.
Correct. Media liability coverage relates to an organization's liability for
material published on its own website.
⩥ One of the three basic forms of excess liability insurance policies is
designed so that it incorporates the provisions of the underlying policy
and then modifies those provisions with additional conditions or
exclusions in the excess liability policy. That type of excess liability
policy form is known as.
Answer: A combination excess liability policy.
⩥ Claims alleging property damage, bodily injury, or financial loss are
common against some professionals. Which one of the following
professionals is most likely to encounter all three varieties of claims?.
Answer: Architect professionals commonly encounter all three varieties
of claims.
⩥ Which one of the following regarding the use of recorded statements
is most accurate?.
Answer: Because they are more efficient, companies have turned almost
exclusively to recorded statements.
EXAMS SCRIPT STUDY GUIDE WITH
SOLVED QUESTIONS
⩥ A typically available cyber risk coverage that includes payment of
fines and penalties is.
Answer: Regulatory action.
Correct. A typically available cyber risk coverage that includes payment
of fines and penalties is regulatory action.
⩥ Which one of the following statements about defense coverage in the
typical professional liability insurance policy is most accurate?.
Answer: Although professional liability policies differ, most policies pay
for defense costs as long as they fall within the limits of the policy.
Correct. Although professional liability policies differ, most policies pay
for defense costs as long as they fall within the limits of the policy.
⩥ Samuel is a retired dentist who practiced in the same town for thirty
years. His professional liability coverage was with the same insurer for
the last ten years of his career. The policies were written on a claims-
made basis with a retroactive date of January 1, 2001 and a five-year
extended reporting period. Samuel cancelled his professional liability
policy when he retired on July 1, 2011. On March 15, 2013 a former
patient filed a sexual abuse claim against Samuel. The alleged incident
,occurred on March 17, 2011. Which one of the following best describes
how Samuel's professional liability coverage will respond?.
Answer: The coverage will not apply because the claim did not arise out
of the rendering or failing to render professional dental services.
⩥ Which one of the following terms contained in the HO-3 policy is
defined as an accident, including continuous or repeated exposure to the
same general harmful conditions?.
Answer: An occurrence is an accident, including continuous or repeated
exposure to the same general harmful conditions.
⩥ Which one of the following statements is correct with respect to
eligibility for coverage under a businessowners policy (BOP)?.
Answer: BOP eligibility rules are based on the size of the business and
the complexity of loss exposures.
⩥ Umbrella liability insurance.
Answer: May cover some claims that are not covered by underlying
liability insurance.
⩥ Which one of the following best describes the differences between a
following-form excess liability policy and a self-contained excess
liability policy?.
Answer: A self-contained excess liability policy is subject only to its
own provisions.
,⩥ All of the following are included as insureds under the Section II—
Liability Coverages of a homeowners policy, EXCEPT:.
Answer: The named insured's separated spouse who resides and works
in another state
Correct. All the people in the answer choices are insureds under the
policy except for the separated spouse of the named insured who does
not reside with the named insured. To qualify as an insured, the spouse
of the named insured must be a resident of the same household as the
named insured.
⩥ Personal umbrella policies usually cover the insured's liability for
personal injury. Under the Personal Umbrella Liability Policy, which one
of the following is included under the definition of personal injury?.
Answer: False Arrest
Under the Personal Umbrella Liability Policy, false arrest is included
under the definition of personal injury.
⩥ Which one of the following major sections of the general liability
coverage form would be found only in a form with a claims-made
trigger?.
Answer: Extended Reporting Periods
Correct. The Extended Reporting Periods section is only found in
general liability forms with a claims-made trigger.
, ⩥ In which one of the following situations would media liability cyber
coverage apply?.
Answer: A marketing employee inadvertently uses a copyrighted photo
on the WidgetCorp website.
Correct. Media liability coverage relates to an organization's liability for
material published on its own website.
⩥ One of the three basic forms of excess liability insurance policies is
designed so that it incorporates the provisions of the underlying policy
and then modifies those provisions with additional conditions or
exclusions in the excess liability policy. That type of excess liability
policy form is known as.
Answer: A combination excess liability policy.
⩥ Claims alleging property damage, bodily injury, or financial loss are
common against some professionals. Which one of the following
professionals is most likely to encounter all three varieties of claims?.
Answer: Architect professionals commonly encounter all three varieties
of claims.
⩥ Which one of the following regarding the use of recorded statements
is most accurate?.
Answer: Because they are more efficient, companies have turned almost
exclusively to recorded statements.
