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AIC 304 Study Questions With VERIFIED Answers
Latest Update 2025
The insurance-to-value provision often found in homeowners policies applies only
to - (answers)A. Property insured under Coverage A--Dwelling.
B. Personal property.
C. Property insured under Coverage A--Dwelling and Coverage B--Other
Structures.
D. Property insured under Coverage B--Other Structures
C
Benjamin is a claims representative handling a merchandise loss. He needs
someone to prepare an inventory of the damaged goods, verify their value,
preserve damaged items, locate the best market for salvageable items, and
oversee the sale. Benjamin should hire a(n) - (answers)A. Wholesaler.
B. Salvor.
C. Public adjuster.
D. Junk dealer.
B
Philip is a claims representative for Goshen Insurance. He is working on a motor
truck cargo (MTC) liability claim and is trying to determine if the entity facing legal
liability for the cargo loss is an insured under the MTC policy. In addition to the
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blanket MTC policy, Philip will need to review which one of the following? -
(answers)A. The schedule of vehicles
B. The insured's trip transit policy
C. The schedule of terminals
D. The carrier section of the bill of lading
D
Brenda and Tyrone are homeowners with a monthly mortgage of $1,200. Their
home sustains damage from a fire, and restoration is expected to take several
months to complete. They rent an apartment with a monthly rent of $1,500 to
occupy during restoration. Which one of the following statements regarding their
additional living expenses under Coverage D in ISO homeowners policy forms is
most accurate? - (answers)A. They would be covered for $2,700, the total of both
their mortgage and the rent on their temporary apartment.
B. They would be covered for $1,500 a month, the full rent on their temporary
apartment.
C. They would be covered for $300 a month, the difference between their
mortgage and temporary monthly rent.
D. There would be no coverage, as additional living expenses are provided only if
the temporary housing expense is equal to or less than that of the damaged
property.
B
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Katarina is a claims representative who is discussing a property loss incident with
the insured. She has asked him if a violent expansion of air occurred, if a loud
noise was reported, and if a sudden and violent outbreak of physical forces
occurred. Katarina is trying to determine - (answers)A. Whether a fire occurred.
B. Grounds for denying the claim.
C. Whether an explosion occurred.
D. Grounds for accepting the claim.
C
Alex is a claims adjuster handling a claim for theft of covered property. Alex's first
step should be to - (answers)A. Confirm who owns the property that has been
reported stolen.
B. Determine if theft is a covered loss and identify policy limitations.
C. Determine who has an insurable interest in the property.
D. Obtain a police report of the incident.
B
Lamar holds an occurrence-based homeowners policy from Gamma Insurance
with an expiration date of July 31. He decides to switch insurers, and executes a
new policy with Upsilon Insurance to take effect on August 1. On July 12th, a fire
damages his home. Repairs are expected to take several months, during which
time Lamar will need to rent an apartment. Which one of the following states
AIC 304 Study Questions With VERIFIED Answers
Latest Update 2025
The insurance-to-value provision often found in homeowners policies applies only
to - (answers)A. Property insured under Coverage A--Dwelling.
B. Personal property.
C. Property insured under Coverage A--Dwelling and Coverage B--Other
Structures.
D. Property insured under Coverage B--Other Structures
C
Benjamin is a claims representative handling a merchandise loss. He needs
someone to prepare an inventory of the damaged goods, verify their value,
preserve damaged items, locate the best market for salvageable items, and
oversee the sale. Benjamin should hire a(n) - (answers)A. Wholesaler.
B. Salvor.
C. Public adjuster.
D. Junk dealer.
B
Philip is a claims representative for Goshen Insurance. He is working on a motor
truck cargo (MTC) liability claim and is trying to determine if the entity facing legal
liability for the cargo loss is an insured under the MTC policy. In addition to the
, 2
blanket MTC policy, Philip will need to review which one of the following? -
(answers)A. The schedule of vehicles
B. The insured's trip transit policy
C. The schedule of terminals
D. The carrier section of the bill of lading
D
Brenda and Tyrone are homeowners with a monthly mortgage of $1,200. Their
home sustains damage from a fire, and restoration is expected to take several
months to complete. They rent an apartment with a monthly rent of $1,500 to
occupy during restoration. Which one of the following statements regarding their
additional living expenses under Coverage D in ISO homeowners policy forms is
most accurate? - (answers)A. They would be covered for $2,700, the total of both
their mortgage and the rent on their temporary apartment.
B. They would be covered for $1,500 a month, the full rent on their temporary
apartment.
C. They would be covered for $300 a month, the difference between their
mortgage and temporary monthly rent.
D. There would be no coverage, as additional living expenses are provided only if
the temporary housing expense is equal to or less than that of the damaged
property.
B
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Katarina is a claims representative who is discussing a property loss incident with
the insured. She has asked him if a violent expansion of air occurred, if a loud
noise was reported, and if a sudden and violent outbreak of physical forces
occurred. Katarina is trying to determine - (answers)A. Whether a fire occurred.
B. Grounds for denying the claim.
C. Whether an explosion occurred.
D. Grounds for accepting the claim.
C
Alex is a claims adjuster handling a claim for theft of covered property. Alex's first
step should be to - (answers)A. Confirm who owns the property that has been
reported stolen.
B. Determine if theft is a covered loss and identify policy limitations.
C. Determine who has an insurable interest in the property.
D. Obtain a police report of the incident.
B
Lamar holds an occurrence-based homeowners policy from Gamma Insurance
with an expiration date of July 31. He decides to switch insurers, and executes a
new policy with Upsilon Insurance to take effect on August 1. On July 12th, a fire
damages his home. Repairs are expected to take several months, during which
time Lamar will need to rent an apartment. Which one of the following states
