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AIC 302 SIMULATED EXAM
Questions with Detailed Verified
Answers
Conor is handling an auto claim involving the death of a minor child in a state
that recognizes the intrinsic value of children. Conor's proposed settlement
amount will include Ans: A calculated value of the child's future services to
the parents.
A calculated value of the child's future services to the parents. Intrinsic value
of children is the assumption that parents invest in children knowing that they
will provide for them when they are older
Cristobal has several methods available to him as he evaluates the settlement
range for his claim:
individual case method, roundtable technique, 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? Ans: Formula method involves a mathematical formula
set by actuaries to set reserves.
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 and her back
injury was aggravated. Her claims representative for the first accident told her
that the aggravation of her back injury Ans: Was covered because it was an
unavoidable consequence of the back injury. An intervening problem is
covered if it is an unavoidable consequence of the first injury.
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Some personal auto policies provide that someone could reasonably expect to
be allowed to use an insured's vehicle even if they did not ask specifically,
such as a relative visiting from out of town. This is called Ans: Implied
permission.
Some policies provide for implied permission for the use of an insured's auto.
In determining coverage for emotional injury, a claims rep must understand
applicable policy language.
Which one of the following is correct? Ans: The term "harm" is potentially
broader than the term "injury"
in determining coverage for emotional injury.
Mehmet was seriously injured in an automobile collision and died after a stay
in the hospital. His family is bringing a survival action claim for medical
expenses, pain and suffering, loss of earnings, and automobile repairs. Which
one of the following claims will be allowed only if the family can demonstrate
that Mehmet was conscious after the accident but before dying? Ans: Pain
and suffering can only be claimed if the decedent was conscious of the pain
and suffering before dying.
Claims reps can isolate specific coverage issues that should be investigated to
determine whether exclusions apply by using a series of yes-or-no questions
in the form of a Ans: Decision tree.
Claims reps can isolate specific coverage issues that should be investigated to
determine whether exclusions apply by using a series of yes-or-no questions
in the form of a decision tree.
Caitlin was involved in a multi-car accident on a highway. The claims
representative for her insurance company is making a case that distracted
AIC 302 SIMULATED EXAM
Questions with Detailed Verified
Answers
Conor is handling an auto claim involving the death of a minor child in a state
that recognizes the intrinsic value of children. Conor's proposed settlement
amount will include Ans: A calculated value of the child's future services to
the parents.
A calculated value of the child's future services to the parents. Intrinsic value
of children is the assumption that parents invest in children knowing that they
will provide for them when they are older
Cristobal has several methods available to him as he evaluates the settlement
range for his claim:
individual case method, roundtable technique, 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? Ans: Formula method involves a mathematical formula
set by actuaries to set reserves.
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 and her back
injury was aggravated. Her claims representative for the first accident told her
that the aggravation of her back injury Ans: Was covered because it was an
unavoidable consequence of the back injury. An intervening problem is
covered if it is an unavoidable consequence of the first injury.
, 2|Page
Some personal auto policies provide that someone could reasonably expect to
be allowed to use an insured's vehicle even if they did not ask specifically,
such as a relative visiting from out of town. This is called Ans: Implied
permission.
Some policies provide for implied permission for the use of an insured's auto.
In determining coverage for emotional injury, a claims rep must understand
applicable policy language.
Which one of the following is correct? Ans: The term "harm" is potentially
broader than the term "injury"
in determining coverage for emotional injury.
Mehmet was seriously injured in an automobile collision and died after a stay
in the hospital. His family is bringing a survival action claim for medical
expenses, pain and suffering, loss of earnings, and automobile repairs. Which
one of the following claims will be allowed only if the family can demonstrate
that Mehmet was conscious after the accident but before dying? Ans: Pain
and suffering can only be claimed if the decedent was conscious of the pain
and suffering before dying.
Claims reps can isolate specific coverage issues that should be investigated to
determine whether exclusions apply by using a series of yes-or-no questions
in the form of a Ans: Decision tree.
Claims reps can isolate specific coverage issues that should be investigated to
determine whether exclusions apply by using a series of yes-or-no questions
in the form of a decision tree.
Caitlin was involved in a multi-car accident on a highway. The claims
representative for her insurance company is making a case that distracted
