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AIC 303 PRACTICE EXAM QUESTIONS
WITH ANSWERS.
Carla is evaluating a bodily injury claim for a claimant who
was injured in an auto accident. She is considering the
claimant's occupation and wages, age, expected work life,
life expectancy, education and training, and previous job
history. Carla is evaluating the claimant's damages for
A. Permanence of disability.
B. Diminished earning capacity.
C. Loss of consortium.
D. Pain and suffering.
B. Diminished earning capacity.
Julian's property is being impacted by contamination from
petroleum byproducts from the neighboring property, which
is occupied by an industrial operation. He wishes to recover
the maximum damages. Julian's attorney advises him to
bring a lawsuit under
A. Nuisance theory.
B. Superfund.
C. CERCLA.
D. Clean Air Act.
A. Nuisance theory.
Which one of the following statements is correct with respect
to rating a businessowners policy (BOP)?
A. It is usually much simpler than rating a comparable
commercial package policy.
B. Business income coverage is rated separately from
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building coverage.
C. It does not take into account the type of building
construction, such as frame or joisted masonry.
D. Rating optional coverages is usually much more complex
than rating the comparable coverages in a commercial
package policy.
A. It is usually much simpler than rating a comparable commercial
package policy.
Anwar is a surgeon who carries malpractice insurance.
Because his reputation might be harmed by the payment of a
liability claim, his policy includes a clause that requires his
permission before a claim is paid. This clause is called a(n)
A. Indemnity clause.
B. Consent-to-settle clause.
C. Right-to-withhold clause.
D. Reputational damage clause.
B. Consent-to-settle clause.
Which one of the following best defines an advance payment
A. A partial claim payment issued without obtaining a signed
release.
B. A partial claim payment accompanied by a signed release.
C. A payment made on behalf of a claimant to a provider,
such as a medical professional or auto repair facility.
D. A payment in full made to a claimant who has not
responded to settlement offers.
A. A partial claim payment issued without obtaining a signed
release.
Marcelle is a claims rep investigating an accident. In
determining liability, she should
A. Rely primarily on the accident report from the insured.
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B. Compare the accident report with any witness statements
or police reports, and investigate any discrepancies between
them.
C. Rely primarily on the police report of the accident.
D. Rely primarily on witness accounts of the accident.
B. Compare the accident report with any witness statements or
police reports, and investigate any discrepancies between them.
Charlene's Clothing is a retail store selling expensive
women's clothing. It is insured under an unendorsed
Commercial General Liability (CGL) Coverage Form. One day
an employee suspects that a customer is about to shoplift an
expensive handbag, so she grabs the customer and detains
her until the police arrive. The customer files a suit against
Charlene's for humiliation and minor bruising. This is an
example of which one of the following CGL loss exposures?
A. Personal and advertising injury
B. Medical payments
C. Products and completed operations
D. Premises and operations
A. Personal and advertising injury
The hospital that treated Dante following a car accident
notifies his insurer of a lien on the claim for medical services
rendered. Having been formally communicated to the insurer,
the lien is now known as
A. A documented lien.
B. A perfected lien.
C. A transmitted lien.
D. An outstanding lien.
B. A perfected lien.
AIC 303 PRACTICE EXAM QUESTIONS
WITH ANSWERS.
Carla is evaluating a bodily injury claim for a claimant who
was injured in an auto accident. She is considering the
claimant's occupation and wages, age, expected work life,
life expectancy, education and training, and previous job
history. Carla is evaluating the claimant's damages for
A. Permanence of disability.
B. Diminished earning capacity.
C. Loss of consortium.
D. Pain and suffering.
B. Diminished earning capacity.
Julian's property is being impacted by contamination from
petroleum byproducts from the neighboring property, which
is occupied by an industrial operation. He wishes to recover
the maximum damages. Julian's attorney advises him to
bring a lawsuit under
A. Nuisance theory.
B. Superfund.
C. CERCLA.
D. Clean Air Act.
A. Nuisance theory.
Which one of the following statements is correct with respect
to rating a businessowners policy (BOP)?
A. It is usually much simpler than rating a comparable
commercial package policy.
B. Business income coverage is rated separately from
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building coverage.
C. It does not take into account the type of building
construction, such as frame or joisted masonry.
D. Rating optional coverages is usually much more complex
than rating the comparable coverages in a commercial
package policy.
A. It is usually much simpler than rating a comparable commercial
package policy.
Anwar is a surgeon who carries malpractice insurance.
Because his reputation might be harmed by the payment of a
liability claim, his policy includes a clause that requires his
permission before a claim is paid. This clause is called a(n)
A. Indemnity clause.
B. Consent-to-settle clause.
C. Right-to-withhold clause.
D. Reputational damage clause.
B. Consent-to-settle clause.
Which one of the following best defines an advance payment
A. A partial claim payment issued without obtaining a signed
release.
B. A partial claim payment accompanied by a signed release.
C. A payment made on behalf of a claimant to a provider,
such as a medical professional or auto repair facility.
D. A payment in full made to a claimant who has not
responded to settlement offers.
A. A partial claim payment issued without obtaining a signed
release.
Marcelle is a claims rep investigating an accident. In
determining liability, she should
A. Rely primarily on the accident report from the insured.
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B. Compare the accident report with any witness statements
or police reports, and investigate any discrepancies between
them.
C. Rely primarily on the police report of the accident.
D. Rely primarily on witness accounts of the accident.
B. Compare the accident report with any witness statements or
police reports, and investigate any discrepancies between them.
Charlene's Clothing is a retail store selling expensive
women's clothing. It is insured under an unendorsed
Commercial General Liability (CGL) Coverage Form. One day
an employee suspects that a customer is about to shoplift an
expensive handbag, so she grabs the customer and detains
her until the police arrive. The customer files a suit against
Charlene's for humiliation and minor bruising. This is an
example of which one of the following CGL loss exposures?
A. Personal and advertising injury
B. Medical payments
C. Products and completed operations
D. Premises and operations
A. Personal and advertising injury
The hospital that treated Dante following a car accident
notifies his insurer of a lien on the claim for medical services
rendered. Having been formally communicated to the insurer,
the lien is now known as
A. A documented lien.
B. A perfected lien.
C. A transmitted lien.
D. An outstanding lien.
B. A perfected lien.
