AIC 304 (ACTUAL 2025/2026) EXAM QUESTIONS WITH 100%
VERIFIED ANSWERS
The agreed value settlement provision establishes the amount
the insurer will pay for a total loss in a property damage claim
- ---Answers---A. When determined in a court of law.
B. Immediately upon occurrence of the loss.
C. At the outset of coverage.
D. Upon arbitration of the final loss amount.
C
Miyu is adjusting a large claim involving merchandise loss for
an insured business. She has conducted an initial inspection of
the premises and the damaged merchandise, gained a
preliminary idea of the scope of damage, outlined the claims
handling process with the insured, and exercised her right to
access the insured's books and records. Which one of the
following of Miyu's actions should reveal whether a complete
physical inventory should be conducted or is even possible? -
---Answers---A. Conducting initial inspection
B. Determining scope of damage
C. Accessing books and records
D. Outlining claims handling process
,A
Most forms of earthquake coverage are subject to a - ---
Answers---A. Hybrid deductible.
B. Split deductible.
C. Percentage deductible.
D. Flat deductible.
C
To identify affected areas and every insured in those areas
immediately following a catastrophe, insurers will typically - -
--Answers---A. Engage independent adjusters.
B. Gather details from online news reporting.
C. Survey insureds electronically or by phone.
D. Deploy an initial survey team
D
Retail Store insures its business personal property under a
Building and Personal Property Coverage Form (BPP) with a
value reporting form. The limit of insurance is $1,000,000 and
the deductible is $5,000. On December 21, a fire destroyed the
store and the personal property. The store's last reported
value on November 30 was $750,000. Assuming that the last
report of values was accurate, how much would the insurer
, pay for the store's personal property loss which amounted to
$700,000? - ---Answers---A. $648,000
B. $653,000
C. $695,000
D. $700,000
C
Which one of the following is most accurate regarding courts'
determination of whether an insured's notice of loss is
unreasonably late and unexcused? - ---Answers---A. Courts
generally consider claims reported after more than 30 days to
be unreasonably late.
B. Most courts consider late notice unexcused unless caused
by a disability due to the loss.
C. The interpretation of what is unreasonably late and
unexcused varies by state.
D. Courts generally agree that most policy language clearly
resolves such issues.
C
Mitsuki is adjusting a property claim for a covered building
from damage that occurred during a major storm. There is
evidence of damage from wind, hail, wind-driven rain, fire,
storm surge, and flooding. Which one of the following sets of
damages would indicate to Mitsuki that a hurricane was
VERIFIED ANSWERS
The agreed value settlement provision establishes the amount
the insurer will pay for a total loss in a property damage claim
- ---Answers---A. When determined in a court of law.
B. Immediately upon occurrence of the loss.
C. At the outset of coverage.
D. Upon arbitration of the final loss amount.
C
Miyu is adjusting a large claim involving merchandise loss for
an insured business. She has conducted an initial inspection of
the premises and the damaged merchandise, gained a
preliminary idea of the scope of damage, outlined the claims
handling process with the insured, and exercised her right to
access the insured's books and records. Which one of the
following of Miyu's actions should reveal whether a complete
physical inventory should be conducted or is even possible? -
---Answers---A. Conducting initial inspection
B. Determining scope of damage
C. Accessing books and records
D. Outlining claims handling process
,A
Most forms of earthquake coverage are subject to a - ---
Answers---A. Hybrid deductible.
B. Split deductible.
C. Percentage deductible.
D. Flat deductible.
C
To identify affected areas and every insured in those areas
immediately following a catastrophe, insurers will typically - -
--Answers---A. Engage independent adjusters.
B. Gather details from online news reporting.
C. Survey insureds electronically or by phone.
D. Deploy an initial survey team
D
Retail Store insures its business personal property under a
Building and Personal Property Coverage Form (BPP) with a
value reporting form. The limit of insurance is $1,000,000 and
the deductible is $5,000. On December 21, a fire destroyed the
store and the personal property. The store's last reported
value on November 30 was $750,000. Assuming that the last
report of values was accurate, how much would the insurer
, pay for the store's personal property loss which amounted to
$700,000? - ---Answers---A. $648,000
B. $653,000
C. $695,000
D. $700,000
C
Which one of the following is most accurate regarding courts'
determination of whether an insured's notice of loss is
unreasonably late and unexcused? - ---Answers---A. Courts
generally consider claims reported after more than 30 days to
be unreasonably late.
B. Most courts consider late notice unexcused unless caused
by a disability due to the loss.
C. The interpretation of what is unreasonably late and
unexcused varies by state.
D. Courts generally agree that most policy language clearly
resolves such issues.
C
Mitsuki is adjusting a property claim for a covered building
from damage that occurred during a major storm. There is
evidence of damage from wind, hail, wind-driven rain, fire,
storm surge, and flooding. Which one of the following sets of
damages would indicate to Mitsuki that a hurricane was
