AIC 302 SIMULATED EXAM
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1. Conor is handling an auto claim involving the A calculated value of the
death of a minor child in a state that recog- child's future services to
nizes the intrinsic value of children. Conor's the parents.
proposed settlement amount will include A calculated value of the
child's future services to
the parents. Intrinsic value
of children is the assump-
tion that parents invest in
children knowing that they
will provide for them when
they are older
2. Cristobal has several methods available to him Formula method involves
as he evaluates the settlement range for his a mathematical formula
claim: set by actuaries to set re-
individual case method, roundtable technique, serves.
formula method, and expert system. Which
method should Cristobal use if he is dealing
with a minor soft tissue claim and wants a
simple approach to achieve an early, mutually
agreeable settlement?
3. Anna injured her back in a not-at-fault auto Was covered because it
accident and has a bodily injury claim with the was an unavoidable con-
other driver's insurance company. Later, she sequence of the back in-
fell and her back injury was aggravated. Her jury. An intervening prob-
claims representative for the first accident told lem is covered if it is an
her that the aggravation of her back injury unavoidable consequence
of the first injury.
4. Some personal auto policies provide that Implied permission.
someone could reasonably expect to be al- Some policies provide for
lowed to use an insured's vehicle even if they implied permission for the
did not ask specifically, such as a relative vis- use of an insured's auto.
iting from out of town. This is called
5. In determining coverage for emotional injury, a The term "harm" is poten-
claims rep must understand applicable policy tially broader than the term
"injury"
, AIC 302 SIMULATED EXAM
Study online at https://quizlet.com/_dz3utb
language. in determining coverage
Which one of the following is correct? for emotional injury.
6. Mehmet was seriously injured in an automo- Pain and suffering can
bile collision and died after a stay in the hos- only be claimed if the
pital. His family is bringing a survival action decedent was conscious
claim for medical expenses, pain and suffer- of the pain and suffering
ing, loss of earnings, and automobile repairs. before dying.
Which one of the following claims will be al-
lowed only if the family can demonstrate that
Mehmet was conscious after the accident but
before dying?
7. Claims reps can isolate specific coverage is- Decision tree.
sues that should be investigated to determine Claims reps can isolate
whether exclusions apply by using a series of specific coverage issues
yes-or-no questions in the form of a that should be investigated
to determine whether ex-
clusions apply by using a
series of yes-or-no ques-
tions in the form of a deci-
sion tree.
8. Caitlin was involved in a multi-car accident The use of a hands-free
on a highway. The claims representative for device while driving can
her insurance company is making a case that lead to a cognitive distrac-
distracted driving by Mike, one of the other tion.
drivers involved in the accident, was a con-
tributing cause of the accident. The records in-
dicate that Mike was using a hands-free device
at the time of the accident. Which one of the
following statements is true regarding the use
of a hands-free device while driving?
9. Sean is an auto liability claims representative. All four elements of neg-
He is working on a claim involving an insured ligence exist in this ac-
driver who rear-ended another vehicle while cident. There was a duty
driving in heavy traffic. No one was injured, owed to others to operate
but there was $3,400 in damage to the other the vehicle safely, that duty
was breached, and was
Study online at https://quizlet.com/_dz3utb
1. Conor is handling an auto claim involving the A calculated value of the
death of a minor child in a state that recog- child's future services to
nizes the intrinsic value of children. Conor's the parents.
proposed settlement amount will include A calculated value of the
child's future services to
the parents. Intrinsic value
of children is the assump-
tion that parents invest in
children knowing that they
will provide for them when
they are older
2. Cristobal has several methods available to him Formula method involves
as he evaluates the settlement range for his a mathematical formula
claim: set by actuaries to set re-
individual case method, roundtable technique, serves.
formula method, and expert system. Which
method should Cristobal use if he is dealing
with a minor soft tissue claim and wants a
simple approach to achieve an early, mutually
agreeable settlement?
3. Anna injured her back in a not-at-fault auto Was covered because it
accident and has a bodily injury claim with the was an unavoidable con-
other driver's insurance company. Later, she sequence of the back in-
fell and her back injury was aggravated. Her jury. An intervening prob-
claims representative for the first accident told lem is covered if it is an
her that the aggravation of her back injury unavoidable consequence
of the first injury.
4. Some personal auto policies provide that Implied permission.
someone could reasonably expect to be al- Some policies provide for
lowed to use an insured's vehicle even if they implied permission for the
did not ask specifically, such as a relative vis- use of an insured's auto.
iting from out of town. This is called
5. In determining coverage for emotional injury, a The term "harm" is poten-
claims rep must understand applicable policy tially broader than the term
"injury"
, AIC 302 SIMULATED EXAM
Study online at https://quizlet.com/_dz3utb
language. in determining coverage
Which one of the following is correct? for emotional injury.
6. Mehmet was seriously injured in an automo- Pain and suffering can
bile collision and died after a stay in the hos- only be claimed if the
pital. His family is bringing a survival action decedent was conscious
claim for medical expenses, pain and suffer- of the pain and suffering
ing, loss of earnings, and automobile repairs. before dying.
Which one of the following claims will be al-
lowed only if the family can demonstrate that
Mehmet was conscious after the accident but
before dying?
7. Claims reps can isolate specific coverage is- Decision tree.
sues that should be investigated to determine Claims reps can isolate
whether exclusions apply by using a series of specific coverage issues
yes-or-no questions in the form of a that should be investigated
to determine whether ex-
clusions apply by using a
series of yes-or-no ques-
tions in the form of a deci-
sion tree.
8. Caitlin was involved in a multi-car accident The use of a hands-free
on a highway. The claims representative for device while driving can
her insurance company is making a case that lead to a cognitive distrac-
distracted driving by Mike, one of the other tion.
drivers involved in the accident, was a con-
tributing cause of the accident. The records in-
dicate that Mike was using a hands-free device
at the time of the accident. Which one of the
following statements is true regarding the use
of a hands-free device while driving?
9. Sean is an auto liability claims representative. All four elements of neg-
He is working on a claim involving an insured ligence exist in this ac-
driver who rear-ended another vehicle while cident. There was a duty
driving in heavy traffic. No one was injured, owed to others to operate
but there was $3,400 in damage to the other the vehicle safely, that duty
was breached, and was
