AIC 302 Simulated Exam Test Questions with Answers 100% Pass
Conor is handling an auto claim involving the Implied permission.
death of a minor child in a state that recognizes Some policies provide for implied permission for
the intrinsic value of children. Conor's proposed the use of an insured's auto.
settlement amount will include -
ANSWERS - A calculated value of the
child's future services to the parents.
A calculated value of the child's future services to In determining coverage for emotional injury, a
the parents. Intrinsic value of children is the claims rep must understand applicable policy
assumption that parents invest in children language.
knowing that they will provide for them when they Which one of the following is correct? -
are older ANSWERS - The term "harm" is potentially
broader than the term "injury"
in determining coverage for emotional injury.
Cristobal has several methods available to him
as he evaluates the settlement range for his
claim: Mehmet was seriously injured in an automobile
individual case method, roundtable technique, collision and died after a stay in the hospital. His
formula method, and expert system. Which family is bringing a survival action claim for
method should Cristobal use if he is dealing with medical expenses, pain and suffering, loss of
a minor soft tissue claim and wants a simple earnings, and automobile repairs. Which one of
approach to achieve an early, mutually the following claims will be allowed only if the
agreeable settlement? - ANSWERS - family can demonstrate that Mehmet was
Formula method involves a mathematical formula conscious after the accident but before dying? -
set by actuaries to set reserves. ANSWERS - Pain and suffering can only be
claimed if the decedent was conscious of the
pain and suffering before dying.
Anna injured her back in a not-at-fault auto
accident and has a bodily injury claim with the
other driver's insurance company. Later, she fell Claims reps can isolate specific coverage issues
and her back injury was aggravated. Her claims that should be investigated to determine whether
representative for the first accident told her that exclusions apply by using a series of yes-or-no
the aggravation of her back injury - questions in the form of a - ANSWERS -
ANSWERS - Was covered because it was Decision tree.
an unavoidable consequence of the back injury. Claims reps can isolate specific coverage issues
An intervening problem is covered if it is an that should be investigated to determine whether
unavoidable consequence of the first injury. exclusions apply by using a series of yes-or-no
questions in the form of a decision tree.
Some personal auto policies provide that
someone could reasonably expect to be allowed Caitlin was involved in a multi-car accident on a
to use an insured's vehicle even if they did not highway. The claims representative for her
ask specifically, such as a relative visiting from insurance company is making a case that
out of town. This is called - ANSWERS - distracted driving by Mike, one of the other
1/8
, AIC 302 Simulated Exam Test Questions with Answers 100% Pass
drivers involved in the accident, was a
contributing cause of the accident. The records A technician repairing auto damage must replace
indicate that Mike was using a hands-free device a body panel as well as the running light/turn
at the time of the accident. Which one of the signal mounted within the panel. The
following statements is true regarding the use of replacement of the light assembly is called a(n) -
a hands-free device while driving? - ANSWERS - Included operation.
ANSWERS - The use of a hands-free An included operation is any operation completed
device while driving can lead to a cognitive in its entirety while another, concurrent, operation
distraction. is performed.
Sean is an auto liability claims representative. He One of the primary questions that must be
is working on a claim involving an insured driver answered in investigating an emotional injury
who rear-ended another vehicle while driving in claim is whether, under the applicable policy,
heavy traffic. No one was injured, but there was emotional distress is considered a(n) -
$3,400 in damage to the other vehicle. Which ANSWERS - Bodily injury.
one of the following statements is correct
regarding this accident? - ANSWERS - All
four elements of negligence exist in this accident.
There was a duty owed to others to operate the Mark was involved in a rear-end collision on a
vehicle safely, that duty was breached, and was highway, and is likely liable for not keeping a
the proximate cause of the resulting $3,400 in clear, assured distance from the other vehicle.
damages. There is no clear evidence of Joe, a passenger in the other vehicle, suffered a
negligence per se provided. serious head injury when his head hit the
windshield. Mark's auto insurer is trying to defend
against the claim by arguing that the head injury
would not have occurred if Joe had been wearing
Hilltop Auto Dealership (Hilltop) is insured by the his seat belt, as is required by law. Based on the
Auto Dealers Coverage Form (ADCF) with a $4 laws that apply in most states, the lack-of-seat-
million limit for physical damage coverage on a belt defense will result in which one of the
nonreporting basis. The dealership experienced following? - ANSWERS - Joe's failure to
a fire loss that resulted in $100,000 in damage to wear a seat belt will not diminish or minimize
the dealer's covered autos. The actual value of Mark's liability.
the inventory of covered autos at the time of the
loss was $5 million. How much will Hilltop's
ADCF insurer pay for this covered loss?
Disregard any deductibles that may apply. - When a claim involves a minor, the claims rep
ANSWERS - $80,000 must resolve two independent claims: the minor's
Hilltop's insurer will pay $80,000 for this covered claim for damages resulting from injury and -
loss. The policy limit was 80% ($4 million/$5 ANSWERS - The parent's or guardian's
million) of the actual value at the time of the loss, claim to recover medical expenses.
so the insurer will only pay 80% of the loss. When a claim involves a minor, the claims rep
$100,000 x .80 = $80,000 must resolve two independent claims: the minor's
claim for damages resulting from injury and the
parent's or guardian's claim to recover medical
2/8
Conor is handling an auto claim involving the Implied permission.
death of a minor child in a state that recognizes Some policies provide for implied permission for
the intrinsic value of children. Conor's proposed the use of an insured's auto.
settlement amount will include -
ANSWERS - A calculated value of the
child's future services to the parents.
A calculated value of the child's future services to In determining coverage for emotional injury, a
the parents. Intrinsic value of children is the claims rep must understand applicable policy
assumption that parents invest in children language.
knowing that they will provide for them when they Which one of the following is correct? -
are older ANSWERS - The term "harm" is potentially
broader than the term "injury"
in determining coverage for emotional injury.
Cristobal has several methods available to him
as he evaluates the settlement range for his
claim: Mehmet was seriously injured in an automobile
individual case method, roundtable technique, collision and died after a stay in the hospital. His
formula method, and expert system. Which family is bringing a survival action claim for
method should Cristobal use if he is dealing with medical expenses, pain and suffering, loss of
a minor soft tissue claim and wants a simple earnings, and automobile repairs. Which one of
approach to achieve an early, mutually the following claims will be allowed only if the
agreeable settlement? - ANSWERS - family can demonstrate that Mehmet was
Formula method involves a mathematical formula conscious after the accident but before dying? -
set by actuaries to set reserves. ANSWERS - Pain and suffering can only be
claimed if the decedent was conscious of the
pain and suffering before dying.
Anna injured her back in a not-at-fault auto
accident and has a bodily injury claim with the
other driver's insurance company. Later, she fell Claims reps can isolate specific coverage issues
and her back injury was aggravated. Her claims that should be investigated to determine whether
representative for the first accident told her that exclusions apply by using a series of yes-or-no
the aggravation of her back injury - questions in the form of a - ANSWERS -
ANSWERS - Was covered because it was Decision tree.
an unavoidable consequence of the back injury. Claims reps can isolate specific coverage issues
An intervening problem is covered if it is an that should be investigated to determine whether
unavoidable consequence of the first injury. exclusions apply by using a series of yes-or-no
questions in the form of a decision tree.
Some personal auto policies provide that
someone could reasonably expect to be allowed Caitlin was involved in a multi-car accident on a
to use an insured's vehicle even if they did not highway. The claims representative for her
ask specifically, such as a relative visiting from insurance company is making a case that
out of town. This is called - ANSWERS - distracted driving by Mike, one of the other
1/8
, AIC 302 Simulated Exam Test Questions with Answers 100% Pass
drivers involved in the accident, was a
contributing cause of the accident. The records A technician repairing auto damage must replace
indicate that Mike was using a hands-free device a body panel as well as the running light/turn
at the time of the accident. Which one of the signal mounted within the panel. The
following statements is true regarding the use of replacement of the light assembly is called a(n) -
a hands-free device while driving? - ANSWERS - Included operation.
ANSWERS - The use of a hands-free An included operation is any operation completed
device while driving can lead to a cognitive in its entirety while another, concurrent, operation
distraction. is performed.
Sean is an auto liability claims representative. He One of the primary questions that must be
is working on a claim involving an insured driver answered in investigating an emotional injury
who rear-ended another vehicle while driving in claim is whether, under the applicable policy,
heavy traffic. No one was injured, but there was emotional distress is considered a(n) -
$3,400 in damage to the other vehicle. Which ANSWERS - Bodily injury.
one of the following statements is correct
regarding this accident? - ANSWERS - All
four elements of negligence exist in this accident.
There was a duty owed to others to operate the Mark was involved in a rear-end collision on a
vehicle safely, that duty was breached, and was highway, and is likely liable for not keeping a
the proximate cause of the resulting $3,400 in clear, assured distance from the other vehicle.
damages. There is no clear evidence of Joe, a passenger in the other vehicle, suffered a
negligence per se provided. serious head injury when his head hit the
windshield. Mark's auto insurer is trying to defend
against the claim by arguing that the head injury
would not have occurred if Joe had been wearing
Hilltop Auto Dealership (Hilltop) is insured by the his seat belt, as is required by law. Based on the
Auto Dealers Coverage Form (ADCF) with a $4 laws that apply in most states, the lack-of-seat-
million limit for physical damage coverage on a belt defense will result in which one of the
nonreporting basis. The dealership experienced following? - ANSWERS - Joe's failure to
a fire loss that resulted in $100,000 in damage to wear a seat belt will not diminish or minimize
the dealer's covered autos. The actual value of Mark's liability.
the inventory of covered autos at the time of the
loss was $5 million. How much will Hilltop's
ADCF insurer pay for this covered loss?
Disregard any deductibles that may apply. - When a claim involves a minor, the claims rep
ANSWERS - $80,000 must resolve two independent claims: the minor's
Hilltop's insurer will pay $80,000 for this covered claim for damages resulting from injury and -
loss. The policy limit was 80% ($4 million/$5 ANSWERS - The parent's or guardian's
million) of the actual value at the time of the loss, claim to recover medical expenses.
so the insurer will only pay 80% of the loss. When a claim involves a minor, the claims rep
$100,000 x .80 = $80,000 must resolve two independent claims: the minor's
claim for damages resulting from injury and the
parent's or guardian's claim to recover medical
2/8
