AIC 300 Exam Study Guide 2026/2027 –
Practice Questions & Answers
As a claims representative, Joshua frequently requests proofs of loss and
affidavits, and conducts examinations under oath and recorded statements.
Which one of Joshua's sworn statements is administered by the insurer's attorney
at the office of the insurer, attorney, or court reporter?
A. Affadivit
B. Recorded statement
C. Proof of loss
D. Examination under oath - correct answer-D. Examination under oath
Examination under oath is administered by the attorney for the insurer after
notice is issued to appear at the office of the insurer, attorney, or court reporter.
Which one of the following can be applied over time to refine a model to better
predict results?
A. Regression
B. Association rule learning
C. Machine learning
D. Statistics - correct answer-C. Machine learning
Machine learning can be applied over time to refine a model to better predict
results.
,Conor is a claims representative whose supervisor is reviewing his claim status
notes. The supervisor took exception with one of Conor's notes, which read, "The
claimant is obviously lying because his account of how the accident happened
keeps changing." The supervisor should advise Conor that this statement is
inappropriate because it is not:
A. Objective
B. Concise
C. Accurate
D. Clear - correct answer-A. Objective
Claim status notes should contain objective comments about the parties, and this
statement is subjective.
Leila is conducting a claims investigation and is taking a recorded statement from
the claimant. She wants a simple yes-or-no answer to prevent the interviewee
from explaining the answer further. She asks, "You experienced back pain
immediately when you lifted the box, didn't you?" Leila has asked a(n)
A. Direct Question
B. Leading Question
C. Open-Ended Question
D. Indirect Question - correct answer-B. Leading Question
The NAIC model act specifies that its provisions regarding bad-faith claims are to
be enforced by
A. NAIC personnel.
B. Insurer personnel, on the honor system.
C. State insurance departments.
, D. The Federal Trade Commission. - correct answer-C. State insurance
departments.
The NAIC model act specifies that its provisions regarding bad-faith claims are to
be enforced by state insurance departments.
Ida was named in a bad-faith lawsuit as the claims representative who handled
the file. The court dismissed the suit, however, because the statute of limitations
had expired. This means that
A. She was immune to prosecution as an employee.
B. The limits of the policy had been exceeded.
C. There was no basis to pierce the corporate veil.
D. Too much time had expired after the claim concluded. - correct answer-D. Too
much time had expired after the claim concluded.
A statute of limitations is a law that stipulates the length of time after an event
during which legal proceedings may be initiated.
Thomas is an attorney who is defending an insurer in a litigated case. He has
located documents that show the insured was aware of the issue that cause the
injury to the claimant before the accident. Thomas is concerned that this evidence
will hurt his case. He should
A. Preserve the evidence as part of the record.
B. File a motion in limine to exclude the evidence.
C. File a motion to suppress the evidence.
D. Destroy the evidence to make the defense stronger. - correct answer-A.
Preserve the evidence as part of the record.
An insurer defending a first-party coverage lawsuit could be found liable if
evidence is intentionally or negligently lost or destroyed.
Practice Questions & Answers
As a claims representative, Joshua frequently requests proofs of loss and
affidavits, and conducts examinations under oath and recorded statements.
Which one of Joshua's sworn statements is administered by the insurer's attorney
at the office of the insurer, attorney, or court reporter?
A. Affadivit
B. Recorded statement
C. Proof of loss
D. Examination under oath - correct answer-D. Examination under oath
Examination under oath is administered by the attorney for the insurer after
notice is issued to appear at the office of the insurer, attorney, or court reporter.
Which one of the following can be applied over time to refine a model to better
predict results?
A. Regression
B. Association rule learning
C. Machine learning
D. Statistics - correct answer-C. Machine learning
Machine learning can be applied over time to refine a model to better predict
results.
,Conor is a claims representative whose supervisor is reviewing his claim status
notes. The supervisor took exception with one of Conor's notes, which read, "The
claimant is obviously lying because his account of how the accident happened
keeps changing." The supervisor should advise Conor that this statement is
inappropriate because it is not:
A. Objective
B. Concise
C. Accurate
D. Clear - correct answer-A. Objective
Claim status notes should contain objective comments about the parties, and this
statement is subjective.
Leila is conducting a claims investigation and is taking a recorded statement from
the claimant. She wants a simple yes-or-no answer to prevent the interviewee
from explaining the answer further. She asks, "You experienced back pain
immediately when you lifted the box, didn't you?" Leila has asked a(n)
A. Direct Question
B. Leading Question
C. Open-Ended Question
D. Indirect Question - correct answer-B. Leading Question
The NAIC model act specifies that its provisions regarding bad-faith claims are to
be enforced by
A. NAIC personnel.
B. Insurer personnel, on the honor system.
C. State insurance departments.
, D. The Federal Trade Commission. - correct answer-C. State insurance
departments.
The NAIC model act specifies that its provisions regarding bad-faith claims are to
be enforced by state insurance departments.
Ida was named in a bad-faith lawsuit as the claims representative who handled
the file. The court dismissed the suit, however, because the statute of limitations
had expired. This means that
A. She was immune to prosecution as an employee.
B. The limits of the policy had been exceeded.
C. There was no basis to pierce the corporate veil.
D. Too much time had expired after the claim concluded. - correct answer-D. Too
much time had expired after the claim concluded.
A statute of limitations is a law that stipulates the length of time after an event
during which legal proceedings may be initiated.
Thomas is an attorney who is defending an insurer in a litigated case. He has
located documents that show the insured was aware of the issue that cause the
injury to the claimant before the accident. Thomas is concerned that this evidence
will hurt his case. He should
A. Preserve the evidence as part of the record.
B. File a motion in limine to exclude the evidence.
C. File a motion to suppress the evidence.
D. Destroy the evidence to make the defense stronger. - correct answer-A.
Preserve the evidence as part of the record.
An insurer defending a first-party coverage lawsuit could be found liable if
evidence is intentionally or negligently lost or destroyed.
