Page 1 of 107
AIC 303 Test Exam WITH COMPLETE 350 QUESTIONS
AND CORRECT DETAILED ANSWERS LATEST UPDATE JUST
RELEASED THIS YEAR
Jack and Linda are meeting with their insurance agent to review their homeowners and auto
policies. The agent has suggested that they add an umbrella policy. Which one of the
following is the best reason the agent will likely provide for purchasing this coverage?
A. To provide increased limits for large jury awards
B. To provide an increased limits policy with no exclusions
C. To avoid any retained limits for the broader coverage
D. To offset the deductibles on their other policies
A. To provide increased limits for large jury awards
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?
A. Individual case method
B. Expert system
C. Roundtable technique
D. Formula method
D. Formula method
Which one of the following is true regarding personal umbrella policy conditions?
A. The umbrella policy will not pay anything in the event of a loss if the underlying insurance
is not maintained.
B. The umbrella policy provides excess coverage over any other insurance, whether it is
collectible or not.
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C. The policy territory is limited to the country where the policyholder resides.
D. The insured must give the insurer written notice of loss within 12 hours.
B. The umbrella policy provides excess coverage over any other insurance, whether it is
collectible or not.
One of the basic forms for an excess liability policy that is subject to the same provisions as
the underlying liability policy is the
A. Manuscript form.
B. Monoline form.
C. Self-contained form.
D. Following-form.
D. Following-form.
Francesca's car was damaged in an auto accident. Afterwards, Francesca did not take the car
to be fixed promptly. As a result, rain entered the car's interior through the broken windows
and caused more damage. At trial, the court did not allow Francesca to collect money for the
rain damage. Which one of the following rules did the court impose on Francesca?
A. Excessive damages rule
B. Compensatory damages rule
C. Collateral source rule
D. Mitigation of damages rule
D. Mitigation of damages rule
Jose was injured in an auto accident caused by the other driver. Jose's injuries were covered
by his medical insurance. At trial, the court did not allow the insurer to reduce Jose's award
by the amount his medical insurance paid. Its decision was based on the
A. Mitigation of damages rule.
B. Excessive damages rule.
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C. Collateral source rule.
D. Compensatory damages rule
C. Collateral source rule.
Because claims reps are sometimes too busy to pay enough attention to subrogation claims,
many insurers pursue subrogation by using
A. Subrogation specialists in a centralized unit.
B. Artificial intelligence to identify likely claims for subrogation.
C. In-house legal counsel.
D. Outsourced claims managers.
A. Subrogation specialists in a centralized unit.
Maja needs a computer to write a paper for school, but hers is not working. So she borrows
Vincente's computer and offers him no compensation. In this situation, Maja owes Vincente a
duty of
A. Slight care.
B. No care.
C. Great care.
D. Ordinary care.
C. Great care.
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?
A. Medical expenses
B. Automobile repairs
C. Loss of earnings
D. Pain and suffering
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D. Pain and suffering
Shota serves drinks to Nanami at his tavern. Nanami leaves the bar and drives home. On the
way, she gets into an accident and injures Cian, who retains an attorney. The attorney's most
likely course of action will be to allege that
A. Nanami was inside the tavern before she drove her car.
B. Shota served Nanami when she was visibly intoxicated.
C. The alcohol manufacturer is liable for the effects of its product.
D. Nanami's auto policy is primary in covering Cian's medical bills.
B. Shota served Nanami when she was visibly intoxicated.
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
A. Was covered because it was a chronic condition.
B. Was covered because it was an unavoidable consequence of the back injury.
C. Was not covered because it was not an unavoidable consequence of the back injury.
D. Was not covered because it was an intervening problem.
B. Was covered because it was an unavoidable consequence of the back injury.
What is it called when two or more parties enter a contract?
Privity of Contract
A physician is visiting Guatemala after a major disaster to administer aid. A patient with a
large laceration requiring stitches develops an infection that is believed to be due to
unsterilized equipment. The patient intends to file suit against the physician. In order for the
loss to be covered under a typical professional liability policy, the
A. Loss would have to occur in the United States or Canada.
B. Policy must list Guatemala under the coverage territory.
AIC 303 Test Exam WITH COMPLETE 350 QUESTIONS
AND CORRECT DETAILED ANSWERS LATEST UPDATE JUST
RELEASED THIS YEAR
Jack and Linda are meeting with their insurance agent to review their homeowners and auto
policies. The agent has suggested that they add an umbrella policy. Which one of the
following is the best reason the agent will likely provide for purchasing this coverage?
A. To provide increased limits for large jury awards
B. To provide an increased limits policy with no exclusions
C. To avoid any retained limits for the broader coverage
D. To offset the deductibles on their other policies
A. To provide increased limits for large jury awards
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?
A. Individual case method
B. Expert system
C. Roundtable technique
D. Formula method
D. Formula method
Which one of the following is true regarding personal umbrella policy conditions?
A. The umbrella policy will not pay anything in the event of a loss if the underlying insurance
is not maintained.
B. The umbrella policy provides excess coverage over any other insurance, whether it is
collectible or not.
, Page 2 of 107
C. The policy territory is limited to the country where the policyholder resides.
D. The insured must give the insurer written notice of loss within 12 hours.
B. The umbrella policy provides excess coverage over any other insurance, whether it is
collectible or not.
One of the basic forms for an excess liability policy that is subject to the same provisions as
the underlying liability policy is the
A. Manuscript form.
B. Monoline form.
C. Self-contained form.
D. Following-form.
D. Following-form.
Francesca's car was damaged in an auto accident. Afterwards, Francesca did not take the car
to be fixed promptly. As a result, rain entered the car's interior through the broken windows
and caused more damage. At trial, the court did not allow Francesca to collect money for the
rain damage. Which one of the following rules did the court impose on Francesca?
A. Excessive damages rule
B. Compensatory damages rule
C. Collateral source rule
D. Mitigation of damages rule
D. Mitigation of damages rule
Jose was injured in an auto accident caused by the other driver. Jose's injuries were covered
by his medical insurance. At trial, the court did not allow the insurer to reduce Jose's award
by the amount his medical insurance paid. Its decision was based on the
A. Mitigation of damages rule.
B. Excessive damages rule.
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C. Collateral source rule.
D. Compensatory damages rule
C. Collateral source rule.
Because claims reps are sometimes too busy to pay enough attention to subrogation claims,
many insurers pursue subrogation by using
A. Subrogation specialists in a centralized unit.
B. Artificial intelligence to identify likely claims for subrogation.
C. In-house legal counsel.
D. Outsourced claims managers.
A. Subrogation specialists in a centralized unit.
Maja needs a computer to write a paper for school, but hers is not working. So she borrows
Vincente's computer and offers him no compensation. In this situation, Maja owes Vincente a
duty of
A. Slight care.
B. No care.
C. Great care.
D. Ordinary care.
C. Great care.
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?
A. Medical expenses
B. Automobile repairs
C. Loss of earnings
D. Pain and suffering
, Page 4 of 107
D. Pain and suffering
Shota serves drinks to Nanami at his tavern. Nanami leaves the bar and drives home. On the
way, she gets into an accident and injures Cian, who retains an attorney. The attorney's most
likely course of action will be to allege that
A. Nanami was inside the tavern before she drove her car.
B. Shota served Nanami when she was visibly intoxicated.
C. The alcohol manufacturer is liable for the effects of its product.
D. Nanami's auto policy is primary in covering Cian's medical bills.
B. Shota served Nanami when she was visibly intoxicated.
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
A. Was covered because it was a chronic condition.
B. Was covered because it was an unavoidable consequence of the back injury.
C. Was not covered because it was not an unavoidable consequence of the back injury.
D. Was not covered because it was an intervening problem.
B. Was covered because it was an unavoidable consequence of the back injury.
What is it called when two or more parties enter a contract?
Privity of Contract
A physician is visiting Guatemala after a major disaster to administer aid. A patient with a
large laceration requiring stitches develops an infection that is believed to be due to
unsterilized equipment. The patient intends to file suit against the physician. In order for the
loss to be covered under a typical professional liability policy, the
A. Loss would have to occur in the United States or Canada.
B. Policy must list Guatemala under the coverage territory.
