AIC 304 CERTIFICATION EXAM
QUESTIONS WITH CORRECT
ANSWERS
Which one of the following endorsements would be particularly useful to companies in
the clothing manufacturing business? - Answer- Manufacturers' Consequential Loss
Assumption endorsement
A widely used financial institution bond is - Answer- Standard Form No. 24.
Tom owns and occupies a home covered under an HO-3 policy. The property has a
detached garage that Tom does not use. One of Tom's neighbors has an extra car and
arranged to rent Tom's garage to store the car. Which one of the following is true of
Tom's HO-3 policy? - Answer- The garage continues to be covered under Coverage B
with no changes in the policy.
Francesca is handling a claim for theft of property. She has asked the insured to provide
documentation of the theft of his television. The insured provided copies of the warranty,
the instruction manual, a photo of the television in his house, and the original receipt.
Which one of the following pieces of documentation provided by the policyholder does
Francesca considers to be the best? - Answer- Original receipt
Magnus is a claims adjuster who has just received a claim for water damage to a home
from a broken pipe. At this point, Magnus' priority is to - Answer- Make sure the insured
has begun the drying process.
Samuel has property coverage for his beach house that includes the standard water
exclusion. During a major storm, the property was damaged by waves that crested a
dune; flooding from torrential rain; a fire, which required firefighters to spray water to
extinguish; and a mudslide from a nearby hill that washed away. Which one of the
following sources of water damage would Samuel determine is covered by the policy? -
Answer- Water from fire hose
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.
Benjamin is a claims representative handling a merchandise loss. He needs someone
to prepare an inventory of the damaged goods, verify their value, preserve damaged
, items, locate the best market for salvageable items, and oversee the sale. Benjamin
should hire a(n) - Answer- Salvor
Katarina is a claims representative who is discussing a property loss incident with the
insured. She has asked him if a violent expansion of air occurred, if a loud noise was
reported, and if a sudden and violent outbreak of physical forces occurred. Katarina is
trying to determine - Answer- Whether an explosion occurred.
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
Mitsuki is adjusting a property claim for a covered building from damage that occurred
during a major storm. There is evidence of damage from wind, hail, wind-driven rain,
fire, storm surge, and flooding. Which one of the following sets of damages would
indicate to Mitsuki that a hurricane was involved? - Answer- Wind, wind-driven rain,
storm surge, flooding
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.
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.
Miyu is adjusting a large claim involving merchandise loss for an insured business. She
has conducted an initial inspection of the premises and the damaged merchandise,
gained a preliminary idea of the scope of damage, outlined the claims handling process
with the insured, and exercised her right to access the insured's books and records.
Which one of the following of Miyu's actions should reveal whether a complete physical
inventory should be conducted or is even possible? - Answer- Conducting initial
inspection
The Optional Coverages section of the business income forms usually includes three
optional coverages: Maximum Period of Indemnity, Monthly Period of Indemnity, and
Business Income Agreed Value. Which one of the following statements is correct? -
Answer- The insured may purchase one of these to omit or suspend the Coinsurance
condition.
QUESTIONS WITH CORRECT
ANSWERS
Which one of the following endorsements would be particularly useful to companies in
the clothing manufacturing business? - Answer- Manufacturers' Consequential Loss
Assumption endorsement
A widely used financial institution bond is - Answer- Standard Form No. 24.
Tom owns and occupies a home covered under an HO-3 policy. The property has a
detached garage that Tom does not use. One of Tom's neighbors has an extra car and
arranged to rent Tom's garage to store the car. Which one of the following is true of
Tom's HO-3 policy? - Answer- The garage continues to be covered under Coverage B
with no changes in the policy.
Francesca is handling a claim for theft of property. She has asked the insured to provide
documentation of the theft of his television. The insured provided copies of the warranty,
the instruction manual, a photo of the television in his house, and the original receipt.
Which one of the following pieces of documentation provided by the policyholder does
Francesca considers to be the best? - Answer- Original receipt
Magnus is a claims adjuster who has just received a claim for water damage to a home
from a broken pipe. At this point, Magnus' priority is to - Answer- Make sure the insured
has begun the drying process.
Samuel has property coverage for his beach house that includes the standard water
exclusion. During a major storm, the property was damaged by waves that crested a
dune; flooding from torrential rain; a fire, which required firefighters to spray water to
extinguish; and a mudslide from a nearby hill that washed away. Which one of the
following sources of water damage would Samuel determine is covered by the policy? -
Answer- Water from fire hose
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.
Benjamin is a claims representative handling a merchandise loss. He needs someone
to prepare an inventory of the damaged goods, verify their value, preserve damaged
, items, locate the best market for salvageable items, and oversee the sale. Benjamin
should hire a(n) - Answer- Salvor
Katarina is a claims representative who is discussing a property loss incident with the
insured. She has asked him if a violent expansion of air occurred, if a loud noise was
reported, and if a sudden and violent outbreak of physical forces occurred. Katarina is
trying to determine - Answer- Whether an explosion occurred.
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
Mitsuki is adjusting a property claim for a covered building from damage that occurred
during a major storm. There is evidence of damage from wind, hail, wind-driven rain,
fire, storm surge, and flooding. Which one of the following sets of damages would
indicate to Mitsuki that a hurricane was involved? - Answer- Wind, wind-driven rain,
storm surge, flooding
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.
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.
Miyu is adjusting a large claim involving merchandise loss for an insured business. She
has conducted an initial inspection of the premises and the damaged merchandise,
gained a preliminary idea of the scope of damage, outlined the claims handling process
with the insured, and exercised her right to access the insured's books and records.
Which one of the following of Miyu's actions should reveal whether a complete physical
inventory should be conducted or is even possible? - Answer- Conducting initial
inspection
The Optional Coverages section of the business income forms usually includes three
optional coverages: Maximum Period of Indemnity, Monthly Period of Indemnity, and
Business Income Agreed Value. Which one of the following statements is correct? -
Answer- The insured may purchase one of these to omit or suspend the Coinsurance
condition.
