AIC 300 EXAMS COMPREHENSIVE ANSWERS AND
QUESTIONS SET A+
✔✔Roundtable method - ✔✔Setting reserves using consensus of multiple claims
personnel independently evaluating the file.
✔✔Average value method - ✔✔A case reserving method establishing a predetermined
dollar amount for each reported claim.
✔✔Formula method - ✔✔A method of setting claim reserves by using a mathematical
formula.
✔✔Expert system method - ✔✔Setting reserves using a software application that
estimates losses and loss adjustment expenses.
✔✔Direct loss - ✔✔A reduction in property value resulting directly and immediately from
damage to that property.
✔✔Indirect loss - ✔✔A loss arising as a result of damage to property, other than direct
loss.
✔✔Pro rata contribution - ✔✔Insurers contribute to loss payment in proportion to which
they contribute to the total amt of coverage purchased (their limits of liability)
✔✔Insurable interest - ✔✔An interest causing a party to suffer financial loss if an
insured event occurred.
✔✔Punitive damages (exemplary damages) - ✔✔Court-awarded payment to punish a
defendant for reckless, malicious, or deceitful acts.
✔✔Compensatory damages - ✔✔A payment awarded by a court to reimburse a victim
for actual harm.
QUESTIONS SET A+
✔✔Roundtable method - ✔✔Setting reserves using consensus of multiple claims
personnel independently evaluating the file.
✔✔Average value method - ✔✔A case reserving method establishing a predetermined
dollar amount for each reported claim.
✔✔Formula method - ✔✔A method of setting claim reserves by using a mathematical
formula.
✔✔Expert system method - ✔✔Setting reserves using a software application that
estimates losses and loss adjustment expenses.
✔✔Direct loss - ✔✔A reduction in property value resulting directly and immediately from
damage to that property.
✔✔Indirect loss - ✔✔A loss arising as a result of damage to property, other than direct
loss.
✔✔Pro rata contribution - ✔✔Insurers contribute to loss payment in proportion to which
they contribute to the total amt of coverage purchased (their limits of liability)
✔✔Insurable interest - ✔✔An interest causing a party to suffer financial loss if an
insured event occurred.
✔✔Punitive damages (exemplary damages) - ✔✔Court-awarded payment to punish a
defendant for reckless, malicious, or deceitful acts.
✔✔Compensatory damages - ✔✔A payment awarded by a court to reimburse a victim
for actual harm.
