AIC 303 PRACTICE EXAM QUESTIONS
AND VERIFIED ANSWERS|VERIFIED AND
TESTED|2025/2026|NEWEST!!!
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.
LeeAnn, a claims representative, is handling a claim with unusual coverage and liability
issues, and believes her insurer would win if the case were to go to trial. She might wish
to settle the claim instead
A. To maintain goodwill with the insured.
B. Because a case of that type is not likely to occur again.
C. Because courts will generally favor the plaintiff.
D. Because an unfavorable court decision might then be applied to many other claims
with less merit.
D. Because an unfavorable court decision might then be applied to many other claims
with less merit.
All of the following exclusions are found in a typical personal umbrella policy, EXCEPT:
A. Personal injury
B. Aircraft liability
C. Professional liability
D. Nuclear energy
A. Personal injury
Which one of the following statements is most accurate?
A. Court decisions, statutes, and insurance regulations tend to vary from year to year
but remain consistent from state to state.
, B. Court decisions, statutes, and insurance regulations may change from one year to
the next and vary from one state to another.
C. Court decisions, statutes, and insurance regulations tend to remain consistent from
year to year and from state to state.
D. Court decisions, statutes, and insurance regulations tend to remain consistent from
year to year but vary from state to state.
B. Court decisions, statutes, and insurance regulations may change from one year to
the next and vary from one state to another.
The typical personal umbrella policy includes coverage for personal injury liability,
property damage liability, and
A. Business pursuits.
B. Professional liability.
C. Defense costs.
D. Intentional injury.
C. Defense costs.
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
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
AND VERIFIED ANSWERS|VERIFIED AND
TESTED|2025/2026|NEWEST!!!
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.
LeeAnn, a claims representative, is handling a claim with unusual coverage and liability
issues, and believes her insurer would win if the case were to go to trial. She might wish
to settle the claim instead
A. To maintain goodwill with the insured.
B. Because a case of that type is not likely to occur again.
C. Because courts will generally favor the plaintiff.
D. Because an unfavorable court decision might then be applied to many other claims
with less merit.
D. Because an unfavorable court decision might then be applied to many other claims
with less merit.
All of the following exclusions are found in a typical personal umbrella policy, EXCEPT:
A. Personal injury
B. Aircraft liability
C. Professional liability
D. Nuclear energy
A. Personal injury
Which one of the following statements is most accurate?
A. Court decisions, statutes, and insurance regulations tend to vary from year to year
but remain consistent from state to state.
, B. Court decisions, statutes, and insurance regulations may change from one year to
the next and vary from one state to another.
C. Court decisions, statutes, and insurance regulations tend to remain consistent from
year to year and from state to state.
D. Court decisions, statutes, and insurance regulations tend to remain consistent from
year to year but vary from state to state.
B. Court decisions, statutes, and insurance regulations may change from one year to
the next and vary from one state to another.
The typical personal umbrella policy includes coverage for personal injury liability,
property damage liability, and
A. Business pursuits.
B. Professional liability.
C. Defense costs.
D. Intentional injury.
C. Defense costs.
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
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
