AIC 304 STUDY questions with verified answers

AIC 304 STUDY questions with verified answers A claims rep is most likely to use the book value method to determine cost of goods sold for a loss involving - ANSWER-Out-of-sight merchandise. .A widely used financial institution bond is - ANSWER-Standard Form No. 24. .Accelerated depreciation - ANSWER-Depreciation that occurs more rapidly when an item is first purchased and then more slowly in subsequent years. .Actual cash value (ACV) - ANSWER-The cost to replace property with new property of like kind and quality less depreciation. .Adam is a professional who is involved in a claim for fire damage. To ensure he uses proper methodology, he is considering the following factors: Was the scene adequately investigated and documented with diagrams and photos? Was the point of origin definitively established? Has the source of ignition been identified? What events led to the fire starting? Was all of the available evidence securely collected? Were all of the witnesses interviewed in a comprehensive fashion? Adam is a - ANSWER-Fire investigator. .Adam is adjusting a claim for fire damage to insured property and has gathered the following facts: multiple fires were involved; the building typically contained flammable materials; the insured's full warehouse of inventory was damaged; and the fire protection system sounded normally. Which one of Adam's findings could lead him to believe the fire was incendiary? - ANSWER-Multiple fires .After a potentially responsible third party is identified, a claims rep should investigate the potential opportunity for subrogation - ANSWER-At the same time as the loss investigation. .Agreed value method - ANSWER-A method of valuing property in which the insurer and the insured agree, at the time the policy is written, on the maximum amount that will be paid in the event of a total loss. .Agreed Value optional coverage - ANSWER-Optional coverage that suspends the Coinsurance condition if the insured carries the amount of insurance agreed to by the insurer and insured. .Alex is a claims adjuster handling a claim for theft of covered property. Alex's first step should be to - ANSWER-Determine if theft is a covered loss and identify policy limitations. .Alibi - ANSWER-An assertion that the party in question was elsewhere at the time the crime occurred. .Alterations or additions made to the building at the expense of an insured who does not own the building and who cannot legally remove them are referred to as - ANSWER-Improvements and betterments. .Although the wording of insuring agreements in commercial inland marine policies varies widely, these agreements have one basic similarity. Which one of the following is correct? - ANSWER-Commercial inland marine policies generally cover the transportation perils. .Alva is adjusting a homeowner's claim for fire damage. The policyholder had a collection of rare antiques that were damaged in the fire. Alva is unfamiliar with the damaged items, so to help her determine the amount of the loss she employs a(n) - ANSWER-Antiques appraiser. .An individual who stands to suffer a monetary loss if a given property were damaged, destroyed, lost, or stolen is said to have - ANSWER-An insurable interest in the property. .Annual transit policies and trip transit policies typically use which one of the following methods to value shipments between a seller and a buyer? - ANSWER-Invoice price .Annual transit policy - ANSWER-Policy that covers all shipments made or received by the insured throughout a one-year policy period. .Appraisal - ANSWER-A method of resolving disputes between insurers and insureds over the amount owed on a covered loss.