Page 1 of 83
AIC 303 EXAM ACTUAL EXAM A, B & C ALL 200
QUESTIONS AND CORRECT ANSWERS LATEST
UPDATE THIS YEAR
AIC 303 EXAM A
Under the Additional Coverages in Section Il—Liability Coverages of the HO-3 policy, the
insurer promises to pay certain claim expenses. These covered expenses include which one of
the following?
A. Any postjudgment interest that accrues before the plaintiff is paid by the insurer
B. An unlimited amount of wages lost by the insured while assisting in defense of a claim or
suit
C. The face amount of any bond the insured is required by the court to obtain
D. The premium on bonds in excess of the policy's Coverage E limit
A. Any postjudgment interest that accrues before the plaintiff is paid by the insurer
All of the following are included as insureds for Section Il coverages in the HO-3 policy,
EXCEPT:
A. Residents of the household who are under the age of 21 and in the care of the named
insured
B. Relatives of the named insured who are visiting in the household for the weekend
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C. Any person legally responsible for an animal owned by the named insured
D. The spouse of the named insured, residing in the same household
B. Relatives of the named insured who are visiting in the household for the weekend
Which one of the following businesses would most likely be eligible for coverage under an
ISO Businessowners Policy?
A. Dry Cleaners — 20,000 square feet, gross sales of $2 million
B. Henri's Gourmet Restaurant — gross sales of $3 million, 40,000 square feet
C. Antique Auto Dealers — gross sales of $2 million
D. Convenience Store — gasoline sales 60 percent of gross sales, 25,000 square feet
D. Convenience Store — gasoline sales 60 percent of gross sales, 25,000 square feet
The additional coverage for loss assessment of the HO-3 policy provides up to $1,000
coverage
A. For charges assessed against the insured as a result of a hold harmless agreement to which
the insured is a party.
B. For charges assessed against the insured as a result of the insured rendering or failing to
render professional services to a third party.
C. For charges assessed against the insured for costs incurred by a volunteer fire department
in fighting a fire at the insured location.
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D. For an assessment against the insured by a homeowners association for a part of damages
awarded against the homeowners association and not otherwise excluded in Section Il—
Liability Coverages.
D. For an assessment against the insured by a homeowners association for a part of damages
awarded against the homeowners association and not otherwise excluded in Section Il—
Liability Coverages.
Which one of the following statements is correct regarding most primary cyber risk policies?
A. Subsidiaries acquired during the policy period are excluded.
B. Cyber risk policies have an occurrence coverage trigger.
C. Cyber risk policies have a high self-insured retention.
D. The coverage territory for third-party liability claims is worldwide.
D. The coverage territory for third-party liability claims is worldwide.
Beatrice was injured in an auto accident and has a lawsuit with the driver. The court awarded
her compensation for medical bills, lost wages, auto repairs, and emotional distress. Which
one of Beatrice's damage awards is categorized as general damages?
A. Emotional distress
B. Medical bills
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C. Lost wages
D. Auto repairs
A. Emotional distress
A consent-to-settle clause is generally found only in which one of the following types of
policy?
A. Automotive liability
B. Premises liability
C. Products liability
D. Professional liability
D. Professional liability
Physical evidence that is improperly handled or stored might be challenged in court because
it is no longer
A. Relevant.
B. Consequential.
C. Competent.
D. Material.
C. Competent.
4
AIC 303 EXAM ACTUAL EXAM A, B & C ALL 200
QUESTIONS AND CORRECT ANSWERS LATEST
UPDATE THIS YEAR
AIC 303 EXAM A
Under the Additional Coverages in Section Il—Liability Coverages of the HO-3 policy, the
insurer promises to pay certain claim expenses. These covered expenses include which one of
the following?
A. Any postjudgment interest that accrues before the plaintiff is paid by the insurer
B. An unlimited amount of wages lost by the insured while assisting in defense of a claim or
suit
C. The face amount of any bond the insured is required by the court to obtain
D. The premium on bonds in excess of the policy's Coverage E limit
A. Any postjudgment interest that accrues before the plaintiff is paid by the insurer
All of the following are included as insureds for Section Il coverages in the HO-3 policy,
EXCEPT:
A. Residents of the household who are under the age of 21 and in the care of the named
insured
B. Relatives of the named insured who are visiting in the household for the weekend
1
, Page 2 of 83
C. Any person legally responsible for an animal owned by the named insured
D. The spouse of the named insured, residing in the same household
B. Relatives of the named insured who are visiting in the household for the weekend
Which one of the following businesses would most likely be eligible for coverage under an
ISO Businessowners Policy?
A. Dry Cleaners — 20,000 square feet, gross sales of $2 million
B. Henri's Gourmet Restaurant — gross sales of $3 million, 40,000 square feet
C. Antique Auto Dealers — gross sales of $2 million
D. Convenience Store — gasoline sales 60 percent of gross sales, 25,000 square feet
D. Convenience Store — gasoline sales 60 percent of gross sales, 25,000 square feet
The additional coverage for loss assessment of the HO-3 policy provides up to $1,000
coverage
A. For charges assessed against the insured as a result of a hold harmless agreement to which
the insured is a party.
B. For charges assessed against the insured as a result of the insured rendering or failing to
render professional services to a third party.
C. For charges assessed against the insured for costs incurred by a volunteer fire department
in fighting a fire at the insured location.
2
, Page 3 of 83
D. For an assessment against the insured by a homeowners association for a part of damages
awarded against the homeowners association and not otherwise excluded in Section Il—
Liability Coverages.
D. For an assessment against the insured by a homeowners association for a part of damages
awarded against the homeowners association and not otherwise excluded in Section Il—
Liability Coverages.
Which one of the following statements is correct regarding most primary cyber risk policies?
A. Subsidiaries acquired during the policy period are excluded.
B. Cyber risk policies have an occurrence coverage trigger.
C. Cyber risk policies have a high self-insured retention.
D. The coverage territory for third-party liability claims is worldwide.
D. The coverage territory for third-party liability claims is worldwide.
Beatrice was injured in an auto accident and has a lawsuit with the driver. The court awarded
her compensation for medical bills, lost wages, auto repairs, and emotional distress. Which
one of Beatrice's damage awards is categorized as general damages?
A. Emotional distress
B. Medical bills
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, Page 4 of 83
C. Lost wages
D. Auto repairs
A. Emotional distress
A consent-to-settle clause is generally found only in which one of the following types of
policy?
A. Automotive liability
B. Premises liability
C. Products liability
D. Professional liability
D. Professional liability
Physical evidence that is improperly handled or stored might be challenged in court because
it is no longer
A. Relevant.
B. Consequential.
C. Competent.
D. Material.
C. Competent.
4
