AIC 303 Actual Exams Study Questions
with 100% Correct Answers | Brand New
Version
1. One function of umbrella liability insurance that differs from the functions
of excess liability insurance is that umbrella insurance - ANSWER Covers
some claims that the insured organization's underlying liability policies do
not cover.
Umbrella insurance covers some claims that the insured organization's
underlying liability policies do not cover.
2. 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.
3. 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.
4. 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.
,5. 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.
6. To respond to common customer inquiries such as claims status updates,
many insurers are deploying technology in the form of - ANSWER
Chatbots powered by artificial intelligence are used to answer questions and
interact with customers online.
7. With a few limited exceptions, commercial general liability policies
specifically exclude - ANSWER Pollution and environmental perils.
Correct. With a few limited exceptions, commercial general liability policies
specifically exclude pollution and environmental perils.
8. The liability of one party for the damages suffered by another is based on -
ANSWER The law.
Correct. The liability of one party for the damages suffered by another is based
on the law, while coverage is based on insurance policy wording.
9. Which one of the following applications of technology saves a great deal of
time and travel for claims reps? - ANSWER Digital appraisal photos
Correct. Claims reps are increasingly saving on time and travel by relying on
photos taken by insureds or specialists to assess damage and make appraisals.
10.Which one of the following is an advantage of using written statement
instead of recorded statements? - ANSWER Written statements minimize
allegations that questions were leading or that the claimant was entrapped.
,11.Although there is a wide variety of types of liability claims, they always
involve how many types of parties? - ANSWER Liability claims always
involve three types of parties: the insured, the insurer and the third party
making a claim against the insured
12.The job of the claims rep involves three primary areas of claims handling:
coverage, liability and - ANSWER Damages.
Correct. The job of the claims rep involves three primary areas of claims
handling: coverage, liability and damages.
13.Donnell is a claims rep gathering evidence for automotive claim. In
assembling the case file he includes an x-ray of a broken bone suffered by
the claimant. This x-ray is - ANSWER Pictorial evidence.
Correct. Pictorial evidence includes photographs, x-rays, videos and other
images.
14.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.
15.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.
16.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.
17.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.
18.Which one of the following statements is correct with respect to eligibility
for coverage under a business owner’s policy (BOP)? - ANSWER BOP
eligibility rules are based on the size of the business and the complexity of
loss exposures.
19.Umbrella liability insurance - ANSWER May cover some claims that are
not covered by underlying liability insurance.
20.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.
21.All of the following are included as insureds under the Section II—Liability
Coverages of a homeowner’ s policy, EXCEPT: - ANSWER The named
insured's separated spouse who resides and works in another state
with 100% Correct Answers | Brand New
Version
1. One function of umbrella liability insurance that differs from the functions
of excess liability insurance is that umbrella insurance - ANSWER Covers
some claims that the insured organization's underlying liability policies do
not cover.
Umbrella insurance covers some claims that the insured organization's
underlying liability policies do not cover.
2. 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.
3. 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.
4. 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.
,5. 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.
6. To respond to common customer inquiries such as claims status updates,
many insurers are deploying technology in the form of - ANSWER
Chatbots powered by artificial intelligence are used to answer questions and
interact with customers online.
7. With a few limited exceptions, commercial general liability policies
specifically exclude - ANSWER Pollution and environmental perils.
Correct. With a few limited exceptions, commercial general liability policies
specifically exclude pollution and environmental perils.
8. The liability of one party for the damages suffered by another is based on -
ANSWER The law.
Correct. The liability of one party for the damages suffered by another is based
on the law, while coverage is based on insurance policy wording.
9. Which one of the following applications of technology saves a great deal of
time and travel for claims reps? - ANSWER Digital appraisal photos
Correct. Claims reps are increasingly saving on time and travel by relying on
photos taken by insureds or specialists to assess damage and make appraisals.
10.Which one of the following is an advantage of using written statement
instead of recorded statements? - ANSWER Written statements minimize
allegations that questions were leading or that the claimant was entrapped.
,11.Although there is a wide variety of types of liability claims, they always
involve how many types of parties? - ANSWER Liability claims always
involve three types of parties: the insured, the insurer and the third party
making a claim against the insured
12.The job of the claims rep involves three primary areas of claims handling:
coverage, liability and - ANSWER Damages.
Correct. The job of the claims rep involves three primary areas of claims
handling: coverage, liability and damages.
13.Donnell is a claims rep gathering evidence for automotive claim. In
assembling the case file he includes an x-ray of a broken bone suffered by
the claimant. This x-ray is - ANSWER Pictorial evidence.
Correct. Pictorial evidence includes photographs, x-rays, videos and other
images.
14.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.
15.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.
16.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.
17.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.
18.Which one of the following statements is correct with respect to eligibility
for coverage under a business owner’s policy (BOP)? - ANSWER BOP
eligibility rules are based on the size of the business and the complexity of
loss exposures.
19.Umbrella liability insurance - ANSWER May cover some claims that are
not covered by underlying liability insurance.
20.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.
21.All of the following are included as insureds under the Section II—Liability
Coverages of a homeowner’ s policy, EXCEPT: - ANSWER The named
insured's separated spouse who resides and works in another state
