AIC 300 UPDATED LATEST ANSWERS AND
QUESTIONS SET A+
✔✔D. A claims rep discovers that their insured's car accident was caused by a road
contractor who left equipment lying in the travel lanes of a highway.
The right of subrogation allows an insurer to recover payment from a negligent third
party. - ✔✔In which one of the following scenarios is the right of subrogation most likely
to be employed by the insurer?
Select one:
A. An insured files a homeowners claim for stolen jewelry. An investigation reveals that
the jewelry is still in the insured's possession.
B. An investigation reveals that an insured set her own business on fire.
C. An insured files a claim for collision damage from a hit and run accident, when in fact
he backed into a utility pole.
D. A claims rep discovers that their insured's car accident was caused by a road
contractor who left equipment lying in the travel lanes of a highway.
✔✔D. A medical investigation.
All bodily injury claims, including workers compensation claims, require a medical
investigation. - ✔✔In claims investigation, all bodily injury claims require
Select one:
A. Statements from all witnesses.
B. Multiple claims payments
C. An attorney.
D. A medical investigation.
✔✔D. Prepare a list of questions for the insured.
Before making initial contact with an insured or claimant, a claims representative should
prepare a list of questions for the insured, along with information on how the claim will
be handled. - ✔✔Before making initial contact with an insured or claimant, a claims
representative should
Select one:
,A. Research similar losses in the same geographical area.
B. Contact company counsel for a reservation of rights letter.
C. Prepare an approximate estimate based on similar losses.
D. Prepare a list of questions for the insured.
✔✔C. Recorded statement.
A recorded statement is taken by the claims rep over the phone or in person. -
✔✔Carolina is a claim representative handling a liability claim. She is speaking to the
claimant over the phone and has informed him that his statements must be true under
penalty of perjury. When completed, she sent a transcription of the conversation to the
claimant for him to sign before a notary. Carolina has taken a(n)
Select one:
A. Affidavit.
B. Deposition.
C. Recorded statement.
D. Examination under oath.
✔✔B. Large loss
Large loss reports are required by most insurers to summarize claims with reserves
above a certain threshold. - ✔✔One of Juan's responsibilities as a claims representative
is to prepare internal reports, such as preliminary, interim, large loss, and captioned.
Which one of the reports Juan prepares is required for claims with reserves that exceed
a specified threshold?
Select one:
A. Interim
B. Large loss
C. Preliminary
D. Captioned
✔✔D. First notice of loss (FNOL) form.
An internal claims handler will often transfer information to the insurer's standard form,
called the first notice of loss (FNOL) form. - ✔✔In the process of assigning a claim, an
internal claims handler will often transfer information to the insurer's standard form,
called the
Select one:
A. Standard claims handling (SCH) form.
B. Initial acknowledgment of notice (IAN) form.
C. Claim intake (CI) form.
D. First notice of loss (FNOL) form.
✔✔B. Average value method
, The average value method is used most often when their are small variations in loss
size for a particular type of claim, and when claims can be concluded quickly. -
✔✔Which one of the following methods of establishing case reserves is used most often
when there are small variations in loss size for a particular type of claim?
Select one:
A. Individual case method
B. Average value method
C. Formula method
D. Roundtable method
✔✔A. The insurer's case reserves.
To determine whether an insurer typically underreserves or overreserves claims,
actuaries compare the insurer's paid losses to the insurer's case reserves. - ✔✔To
determine whether an insurer typically underreserves or overreserves claims, actuaries
compare the insurer's paid losses to
Select one:
A. The insurer's case reserves.
B. The insurer's profits.
C. NAIC model regulations.
D. National averages.
✔✔D. Pain and suffering
Pain and suffering, disfigurement, loss of body function, and emotional distress are all
forms of general damages. - ✔✔Samuel was seriously injured in a car accident caused
by a drunk driver. His settlement included payments for repairs to his vehicle, medical
bills, pain and suffering, and lost wages. Which one of the payments in Samuel's
settlement is considered general damages?
Select one:
A. Medical bills
B. Lost wages
C. Repairs to his vehicle
D. Pain and suffering
✔✔C. The DICE method. - ✔✔Andrew is a claims representative investigating whether
coverage applies to a new claim. To help ensure that he considers every facet of the
policy before determining coverage, he might use
Select one:
A. The CARD method.
B. The CARE method.
C. The DICE method.
D. The DARE method.
✔✔A. Loss of earnings
QUESTIONS SET A+
✔✔D. A claims rep discovers that their insured's car accident was caused by a road
contractor who left equipment lying in the travel lanes of a highway.
The right of subrogation allows an insurer to recover payment from a negligent third
party. - ✔✔In which one of the following scenarios is the right of subrogation most likely
to be employed by the insurer?
Select one:
A. An insured files a homeowners claim for stolen jewelry. An investigation reveals that
the jewelry is still in the insured's possession.
B. An investigation reveals that an insured set her own business on fire.
C. An insured files a claim for collision damage from a hit and run accident, when in fact
he backed into a utility pole.
D. A claims rep discovers that their insured's car accident was caused by a road
contractor who left equipment lying in the travel lanes of a highway.
✔✔D. A medical investigation.
All bodily injury claims, including workers compensation claims, require a medical
investigation. - ✔✔In claims investigation, all bodily injury claims require
Select one:
A. Statements from all witnesses.
B. Multiple claims payments
C. An attorney.
D. A medical investigation.
✔✔D. Prepare a list of questions for the insured.
Before making initial contact with an insured or claimant, a claims representative should
prepare a list of questions for the insured, along with information on how the claim will
be handled. - ✔✔Before making initial contact with an insured or claimant, a claims
representative should
Select one:
,A. Research similar losses in the same geographical area.
B. Contact company counsel for a reservation of rights letter.
C. Prepare an approximate estimate based on similar losses.
D. Prepare a list of questions for the insured.
✔✔C. Recorded statement.
A recorded statement is taken by the claims rep over the phone or in person. -
✔✔Carolina is a claim representative handling a liability claim. She is speaking to the
claimant over the phone and has informed him that his statements must be true under
penalty of perjury. When completed, she sent a transcription of the conversation to the
claimant for him to sign before a notary. Carolina has taken a(n)
Select one:
A. Affidavit.
B. Deposition.
C. Recorded statement.
D. Examination under oath.
✔✔B. Large loss
Large loss reports are required by most insurers to summarize claims with reserves
above a certain threshold. - ✔✔One of Juan's responsibilities as a claims representative
is to prepare internal reports, such as preliminary, interim, large loss, and captioned.
Which one of the reports Juan prepares is required for claims with reserves that exceed
a specified threshold?
Select one:
A. Interim
B. Large loss
C. Preliminary
D. Captioned
✔✔D. First notice of loss (FNOL) form.
An internal claims handler will often transfer information to the insurer's standard form,
called the first notice of loss (FNOL) form. - ✔✔In the process of assigning a claim, an
internal claims handler will often transfer information to the insurer's standard form,
called the
Select one:
A. Standard claims handling (SCH) form.
B. Initial acknowledgment of notice (IAN) form.
C. Claim intake (CI) form.
D. First notice of loss (FNOL) form.
✔✔B. Average value method
, The average value method is used most often when their are small variations in loss
size for a particular type of claim, and when claims can be concluded quickly. -
✔✔Which one of the following methods of establishing case reserves is used most often
when there are small variations in loss size for a particular type of claim?
Select one:
A. Individual case method
B. Average value method
C. Formula method
D. Roundtable method
✔✔A. The insurer's case reserves.
To determine whether an insurer typically underreserves or overreserves claims,
actuaries compare the insurer's paid losses to the insurer's case reserves. - ✔✔To
determine whether an insurer typically underreserves or overreserves claims, actuaries
compare the insurer's paid losses to
Select one:
A. The insurer's case reserves.
B. The insurer's profits.
C. NAIC model regulations.
D. National averages.
✔✔D. Pain and suffering
Pain and suffering, disfigurement, loss of body function, and emotional distress are all
forms of general damages. - ✔✔Samuel was seriously injured in a car accident caused
by a drunk driver. His settlement included payments for repairs to his vehicle, medical
bills, pain and suffering, and lost wages. Which one of the payments in Samuel's
settlement is considered general damages?
Select one:
A. Medical bills
B. Lost wages
C. Repairs to his vehicle
D. Pain and suffering
✔✔C. The DICE method. - ✔✔Andrew is a claims representative investigating whether
coverage applies to a new claim. To help ensure that he considers every facet of the
policy before determining coverage, he might use
Select one:
A. The CARD method.
B. The CARE method.
C. The DICE method.
D. The DARE method.
✔✔A. Loss of earnings
