AIC 300 - Claims in an Evolving World NEWEST
ACTUAL EXAM 180 QUESTIONS AND CORRECT DETAILED
ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED A+
Indemnify - CORRECT ANSWER To restore a party who
has sustained a loss to the same financial position that
party held before the loss occurred
Claims Representative - CORRECT ANSWER A person
responsible for investigating, evaluating, and settling claims
Third-party Adminstrator - CORRECT ANSWER An
organization that provides administrative services
associated with risk financing and insurance
Producer - CORRECT ANSWER Any of several kinds of
insurance personnel who place insurance and surety
business with insurers and who represent either insurers or
insureds or both
Public Adjuster - CORRECT ANSWER An outside
organization or person hired by an insured to represent the
insured in a claim in exchange for a fee
Premium Audit - CORRECT ANSWER Methodical
examination of a policyholder's operations, records, and
books of account to determine the actual exposure units
and premium for insurance coverages already provided
,Loss Ratio - CORRECT ANSWER A ratio that measures
losses and loss adjustment expenses against earned
premiums and that reflects the percentage of premiums
being consumed by losses
Loss Adjustment Expenses (LAE) - CORRECT ANSWER
The expense that an insurer incurs to investigate, defend,
and settle claims according to the terms specified in the
insurance policy.
First Notice of Loss (FNOL) - CORRECT ANSWER The
initial report notifying the insurer of a claim
Reserve - CORRECT ANSWER The amount the insurer
estimates and sets aside to pay on an existing claim
Individual Case Method - CORRECT ANSWER A method
of setting reserves based on the claim's circumstances and
the claims representative's experience in handling similar
claims
Roundtable method - CORRECT ANSWER A method of
setting reserves by using the consensus of two of more
claims personnel who have independently evaluated the
claims file
Average Value Method - CORRECT ANSWER A case
reserving method that establishes a predetermined dollar
amount of reserve for each claim as it is replaced
,Formula Method - CORRECT ANSWER A method of
setting claim reserves by using a mathematical formula
Expert system method - CORRECT ANSWER A method
of setting reserves with a software application that
estimates losses and loss adjustment expenses
Direct Loss - CORRECT ANSWER A reduction in the
value of property that results directly and often immediately
from damage to that property
Indirect Loss - CORRECT ANSWER A loss that arises as
a result of damage to property, other than the direct loss to
the property
Pro Rata Contribution - CORRECT ANSWER An approach
to other insurance by which the insurers contribute to the
loss payment in the proportion to which they contribute to
the total amount of coverage purchase (their limits of
liability)
Insurable interest - CORRECT ANSWER an interest in
the subject of an insurance policy that is not unduly remote
and that would cause the interested party to suffer financial
loss if an insured event occurred
Punitive damages (exemplary damages) - CORRECT
ANSWER A payment awarded by a court to punish a
defendant for a reckless, malicious, or deceitful act to deter
similar conduct; the award need not bear any relation to a
party's actual damages
, Compensatory Damages - CORRECT ANSWER a
payment awarded by a court to reimburse a victim for actual
harm
Special Damages - CORRECT ANSWER A form of
compensatory damages that awards a sum of money for
specific, identifiable expenses associated with the injured
person's loss, such as medical expenses or lost wages
General damages - CORRECT ANSWER a monetary
award to compensate a victim for losses, such as pain and
suffering, that do not involve specific, measurable expenses
Coinsurance Clause - CORRECT ANSWER A clause that
requires the insured to carry insurance equal to at least a
specified percentage of the insured property's value
Discovery - CORRECT ANSWER A pretrial exchange of
all relevant information between the plaintiff and defendant
Summons - CORRECT ANSWER a document that directs
a sheriff or another court-designated officer to notify the
defendant named in the lawsuit that a lawsuit has been
started and that the defendant has a specified amount of
time to answer the complaint
Complaint - CORRECT ANSWER The allegations made
by a plaintiff in a lawsuit
ACTUAL EXAM 180 QUESTIONS AND CORRECT DETAILED
ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED A+
Indemnify - CORRECT ANSWER To restore a party who
has sustained a loss to the same financial position that
party held before the loss occurred
Claims Representative - CORRECT ANSWER A person
responsible for investigating, evaluating, and settling claims
Third-party Adminstrator - CORRECT ANSWER An
organization that provides administrative services
associated with risk financing and insurance
Producer - CORRECT ANSWER Any of several kinds of
insurance personnel who place insurance and surety
business with insurers and who represent either insurers or
insureds or both
Public Adjuster - CORRECT ANSWER An outside
organization or person hired by an insured to represent the
insured in a claim in exchange for a fee
Premium Audit - CORRECT ANSWER Methodical
examination of a policyholder's operations, records, and
books of account to determine the actual exposure units
and premium for insurance coverages already provided
,Loss Ratio - CORRECT ANSWER A ratio that measures
losses and loss adjustment expenses against earned
premiums and that reflects the percentage of premiums
being consumed by losses
Loss Adjustment Expenses (LAE) - CORRECT ANSWER
The expense that an insurer incurs to investigate, defend,
and settle claims according to the terms specified in the
insurance policy.
First Notice of Loss (FNOL) - CORRECT ANSWER The
initial report notifying the insurer of a claim
Reserve - CORRECT ANSWER The amount the insurer
estimates and sets aside to pay on an existing claim
Individual Case Method - CORRECT ANSWER A method
of setting reserves based on the claim's circumstances and
the claims representative's experience in handling similar
claims
Roundtable method - CORRECT ANSWER A method of
setting reserves by using the consensus of two of more
claims personnel who have independently evaluated the
claims file
Average Value Method - CORRECT ANSWER A case
reserving method that establishes a predetermined dollar
amount of reserve for each claim as it is replaced
,Formula Method - CORRECT ANSWER A method of
setting claim reserves by using a mathematical formula
Expert system method - CORRECT ANSWER A method
of setting reserves with a software application that
estimates losses and loss adjustment expenses
Direct Loss - CORRECT ANSWER A reduction in the
value of property that results directly and often immediately
from damage to that property
Indirect Loss - CORRECT ANSWER A loss that arises as
a result of damage to property, other than the direct loss to
the property
Pro Rata Contribution - CORRECT ANSWER An approach
to other insurance by which the insurers contribute to the
loss payment in the proportion to which they contribute to
the total amount of coverage purchase (their limits of
liability)
Insurable interest - CORRECT ANSWER an interest in
the subject of an insurance policy that is not unduly remote
and that would cause the interested party to suffer financial
loss if an insured event occurred
Punitive damages (exemplary damages) - CORRECT
ANSWER A payment awarded by a court to punish a
defendant for a reckless, malicious, or deceitful act to deter
similar conduct; the award need not bear any relation to a
party's actual damages
, Compensatory Damages - CORRECT ANSWER a
payment awarded by a court to reimburse a victim for actual
harm
Special Damages - CORRECT ANSWER A form of
compensatory damages that awards a sum of money for
specific, identifiable expenses associated with the injured
person's loss, such as medical expenses or lost wages
General damages - CORRECT ANSWER a monetary
award to compensate a victim for losses, such as pain and
suffering, that do not involve specific, measurable expenses
Coinsurance Clause - CORRECT ANSWER A clause that
requires the insured to carry insurance equal to at least a
specified percentage of the insured property's value
Discovery - CORRECT ANSWER A pretrial exchange of
all relevant information between the plaintiff and defendant
Summons - CORRECT ANSWER a document that directs
a sheriff or another court-designated officer to notify the
defendant named in the lawsuit that a lawsuit has been
started and that the defendant has a specified amount of
time to answer the complaint
Complaint - CORRECT ANSWER The allegations made
by a plaintiff in a lawsuit
