AIC 304 Test with Questions and Correct
Answers| Latest Update| Pass Guaranteed
Scope
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
A signed agreement indicating that during the course of investigation, neither the
insurer nor the insured waives rights under the policy
Insurable interest
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
The party temporarily possessing the personal property in a bailment.
,Trustee
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
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
An outside organization or person hired by an insured to represent the insured in
a claim in exchange for a fee.
Business income insurance
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
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
The difference between revenues (such as money received for goods or services)
and expenses (such as money paid for merchandise, rent, and insurance).
, Profit
Net income that results when revenues exceed expenses.
Net loss
Net income that results when expenses exceed revenues.
Continuing expenses
Expenses that continue to be incurred during a business interruption.
Noncontinuing expenses
Expenses that will not continue during a business interruption.
Extra expenses
Expenses, in addition to ordinary expenses, that an organization incurs to mitigate
the effects of a business interruption.
Inland marine insurance
Insurance that covers many different classes of property that typically involve an
element of transportation on land.
Answers| Latest Update| Pass Guaranteed
Scope
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
A signed agreement indicating that during the course of investigation, neither the
insurer nor the insured waives rights under the policy
Insurable interest
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
The party temporarily possessing the personal property in a bailment.
,Trustee
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
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
An outside organization or person hired by an insured to represent the insured in
a claim in exchange for a fee.
Business income insurance
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
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
The difference between revenues (such as money received for goods or services)
and expenses (such as money paid for merchandise, rent, and insurance).
, Profit
Net income that results when revenues exceed expenses.
Net loss
Net income that results when expenses exceed revenues.
Continuing expenses
Expenses that continue to be incurred during a business interruption.
Noncontinuing expenses
Expenses that will not continue during a business interruption.
Extra expenses
Expenses, in addition to ordinary expenses, that an organization incurs to mitigate
the effects of a business interruption.
Inland marine insurance
Insurance that covers many different classes of property that typically involve an
element of transportation on land.
