Page 1 of 30
AIC 304 2026/2027 PRACTICE EXAM
COMPLETE CURRENT TESTING QUESTIONS
AND CORRECT VERIFIED ANSWERS FOR
GUARANTEED PASS/TOP-RATED A+.
AIC 304
Maximize your success on the AIC 304 (likely Applied Insurance
Concepts or a similar course) practice assessment with focused
preparation that strengthens your understanding of core
insurance principles, policy analysis, and risk management
strategies. It is specifically designed for insurance, risk
management, and business students to build proficiency in
analyzing and applying key insurance frameworks.
A commercial property damages claims rep can determine
book value by using three other values: value of stock as of
last physical inventory; value of additions to stock from last
inventory date to date of loss; andA. Value of stock at time of
acquisition.
B. Slippage documented in last physical inventory.
C. Value of stock sold from last inventory date to date of
loss.
D. Depreciation of stock since last inventory date.
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...... ANSWER ....... C✓✓
With most property insurance policies, the loss or damage
claimed must have occurred during the policy period in
order to be covered. This is called a(n)A. Occurrence basis.
B. Policy basis.
C. Period of restoration basis.
D. Calendar basis.
...... ANSWER ....... A✓✓
Katie is adjusting a homeowners insurance claim for
property damage from windstorm and hail. The claim
includes repair to a fishing boat and trailer that were in the
insured's driveway; replacement of roof surface and flashing
that were blown away by the wind and damaged by hail;
replacement of trees and shrubs that were uprooted by the
wind; removal of trees that were blown onto the ground in
the back yard. Which one of the following policyholder's
requests does Katie approve?A. Roof replacement
B. Boat and trailer repair
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C. Tree removal
D. Tree and shrub replacement
...... ANSWER ....... A✓✓
Molly is the claims representative assigned to a contractors
equipment claim for a large bulldozer. During her initial
investigation she learned that the bulldozer is leased from an
equipment dealer. Which part of the contractors equipment
policy will Molly want to review for more information about
the obligations to the equipment dealer?A. Loss payable
provision
B. Conditions
C. Equipment schedule
D. Coinsurance provision
...... ANSWER ....... A✓✓
To determine a loss payment under the BPP's coinsurance
provision, you would divide the amount of insurance carried
AIC 304 2026/2027 PRACTICE EXAM
COMPLETE CURRENT TESTING QUESTIONS
AND CORRECT VERIFIED ANSWERS FOR
GUARANTEED PASS/TOP-RATED A+.
AIC 304
Maximize your success on the AIC 304 (likely Applied Insurance
Concepts or a similar course) practice assessment with focused
preparation that strengthens your understanding of core
insurance principles, policy analysis, and risk management
strategies. It is specifically designed for insurance, risk
management, and business students to build proficiency in
analyzing and applying key insurance frameworks.
A commercial property damages claims rep can determine
book value by using three other values: value of stock as of
last physical inventory; value of additions to stock from last
inventory date to date of loss; andA. Value of stock at time of
acquisition.
B. Slippage documented in last physical inventory.
C. Value of stock sold from last inventory date to date of
loss.
D. Depreciation of stock since last inventory date.
, Page 2 of 30
...... ANSWER ....... C✓✓
With most property insurance policies, the loss or damage
claimed must have occurred during the policy period in
order to be covered. This is called a(n)A. Occurrence basis.
B. Policy basis.
C. Period of restoration basis.
D. Calendar basis.
...... ANSWER ....... A✓✓
Katie is adjusting a homeowners insurance claim for
property damage from windstorm and hail. The claim
includes repair to a fishing boat and trailer that were in the
insured's driveway; replacement of roof surface and flashing
that were blown away by the wind and damaged by hail;
replacement of trees and shrubs that were uprooted by the
wind; removal of trees that were blown onto the ground in
the back yard. Which one of the following policyholder's
requests does Katie approve?A. Roof replacement
B. Boat and trailer repair
, Page 3 of 30
C. Tree removal
D. Tree and shrub replacement
...... ANSWER ....... A✓✓
Molly is the claims representative assigned to a contractors
equipment claim for a large bulldozer. During her initial
investigation she learned that the bulldozer is leased from an
equipment dealer. Which part of the contractors equipment
policy will Molly want to review for more information about
the obligations to the equipment dealer?A. Loss payable
provision
B. Conditions
C. Equipment schedule
D. Coinsurance provision
...... ANSWER ....... A✓✓
To determine a loss payment under the BPP's coinsurance
provision, you would divide the amount of insurance carried
