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AIC 301 Final Exam (Associate in Claims) final Exam
ACTUAL EXAM COMPLETE QUESTIONS AND VERIFIED
SOLUTIONS LATEST UPDATE THIS YEAR
EXAM COVERAGE – AIC 301 Final Exam (Associate in Claims)
The AIC 301 Final Exam assesses knowledge of legal principles and claim practices essential for
insurance claims professionals. Key topics include contract law, such as offer and acceptance,
consideration, enforceability, waiver, estoppel, and implied contracts. The exam evaluates
understanding of tort law and liability concepts, including negligence, damages, legal defenses,
and responsibilities in claim situations. Candidates are tested on property rights and ownership
laws, including community property, separate property, and assignment of contractual rights.
Additional areas include transportation and commercial documents, such as bills of lading, and
the legal responsibilities of carriers in the movement of goods. The exam also covers claims
investigation procedures, ethical responsibilities, dispute resolution, and settlement
practices. Emphasis is placed on applying legal and insurance principles to real-world claims
scenarios to ensure fair, lawful, and effective claims handling.
QUESTION: Jack and JoAnn who are spouses, live in a western state of the United States and
when they divorced they equally shared all property acquired while they were married. There
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was also property owned individually at the time they were married as well as property
inherited by JoAnn. Their state is using laws relating to
Select one:
A. Jointly titled property.
B. Separate property.
C. Community property.
D. Property in its entirety. - ANSWER-C. Community property.
QUESTION: Which one of the following rights is assignable under the general rule of contract
law?
Select one:
A. The right to receive veteran disability benefits
B. The right to sue for damage for property loss or damage
C. The right to assign personal duties
D. The right to receive workers compensation benefits - ANSWER-B. The right to sue for
damage for property loss or damage
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QUESTION: Alva had an auto insurance policy written by Guilford Insurance Co. Alva had an
auto accident with Furkan. Furkan was injured in the accident and he filed suit against Guilford
for his damages. Guilford filed a motion to dismiss the lawsuit, claiming that Furkan had no
right to sue Guilford. Which one of the following correctly states how the court will rule on
Guilford's motion?
Select one:
A. The motion will be denied, if Alva asks Guilford to permit Furkan to sue Guilford.
B. The motion will be denied because liability insurers generally owe a duty to third-party
claimants.
C. The motion will be denied, if a direct-action statute has been enacted.
D. The motion will be denied because third parties may sue insurers of negligent parties. -
ANSWER-C. The motion will be denied, if a direct-action statute has been enacted.
QUESTION: Physician Betty administered medical services to stroke victim Karl who was
unconscious. She provided medication and direction and followed all procedures. When Karl
woke up, he refused other medical services and he also indicated that he could not be held
liable for any expenses that he did not personally authorize or to which he did not consent. It is
likely that Karl might be required to pay the reasonable value of the services received based on
Select one:
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A. A unilateral contract.
B. An implied-in-law contract.
C. An implied-in-fact contract.
D. An executory contract. - ANSWER-B. An implied-in-law contract.
QUESTION: One purpose served by a bill of lading is to serve as
Select one:
A. An endorsement to a document of title.
B. A description of goods in a warehouse.
C. The receipt of goods by the carrier for delivery.
D. A contract for the storage of goods. - ANSWER-C. The receipt of goods by the carrier for
delivery.
QUESTION: A claim representative is working with Karl to settle a water damage claim. The loss
was extensive and Karl fears retaining the wet property for inspection as required by his policy
will cause a mold problem. The claim representative informs Karl that he does not need to
retain the wet property. Is the action of the claim representative appropriate?
AIC 301 Final Exam (Associate in Claims) final Exam
ACTUAL EXAM COMPLETE QUESTIONS AND VERIFIED
SOLUTIONS LATEST UPDATE THIS YEAR
EXAM COVERAGE – AIC 301 Final Exam (Associate in Claims)
The AIC 301 Final Exam assesses knowledge of legal principles and claim practices essential for
insurance claims professionals. Key topics include contract law, such as offer and acceptance,
consideration, enforceability, waiver, estoppel, and implied contracts. The exam evaluates
understanding of tort law and liability concepts, including negligence, damages, legal defenses,
and responsibilities in claim situations. Candidates are tested on property rights and ownership
laws, including community property, separate property, and assignment of contractual rights.
Additional areas include transportation and commercial documents, such as bills of lading, and
the legal responsibilities of carriers in the movement of goods. The exam also covers claims
investigation procedures, ethical responsibilities, dispute resolution, and settlement
practices. Emphasis is placed on applying legal and insurance principles to real-world claims
scenarios to ensure fair, lawful, and effective claims handling.
QUESTION: Jack and JoAnn who are spouses, live in a western state of the United States and
when they divorced they equally shared all property acquired while they were married. There
,Page 2 of 107
was also property owned individually at the time they were married as well as property
inherited by JoAnn. Their state is using laws relating to
Select one:
A. Jointly titled property.
B. Separate property.
C. Community property.
D. Property in its entirety. - ANSWER-C. Community property.
QUESTION: Which one of the following rights is assignable under the general rule of contract
law?
Select one:
A. The right to receive veteran disability benefits
B. The right to sue for damage for property loss or damage
C. The right to assign personal duties
D. The right to receive workers compensation benefits - ANSWER-B. The right to sue for
damage for property loss or damage
,Page 3 of 107
QUESTION: Alva had an auto insurance policy written by Guilford Insurance Co. Alva had an
auto accident with Furkan. Furkan was injured in the accident and he filed suit against Guilford
for his damages. Guilford filed a motion to dismiss the lawsuit, claiming that Furkan had no
right to sue Guilford. Which one of the following correctly states how the court will rule on
Guilford's motion?
Select one:
A. The motion will be denied, if Alva asks Guilford to permit Furkan to sue Guilford.
B. The motion will be denied because liability insurers generally owe a duty to third-party
claimants.
C. The motion will be denied, if a direct-action statute has been enacted.
D. The motion will be denied because third parties may sue insurers of negligent parties. -
ANSWER-C. The motion will be denied, if a direct-action statute has been enacted.
QUESTION: Physician Betty administered medical services to stroke victim Karl who was
unconscious. She provided medication and direction and followed all procedures. When Karl
woke up, he refused other medical services and he also indicated that he could not be held
liable for any expenses that he did not personally authorize or to which he did not consent. It is
likely that Karl might be required to pay the reasonable value of the services received based on
Select one:
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A. A unilateral contract.
B. An implied-in-law contract.
C. An implied-in-fact contract.
D. An executory contract. - ANSWER-B. An implied-in-law contract.
QUESTION: One purpose served by a bill of lading is to serve as
Select one:
A. An endorsement to a document of title.
B. A description of goods in a warehouse.
C. The receipt of goods by the carrier for delivery.
D. A contract for the storage of goods. - ANSWER-C. The receipt of goods by the carrier for
delivery.
QUESTION: A claim representative is working with Karl to settle a water damage claim. The loss
was extensive and Karl fears retaining the wet property for inspection as required by his policy
will cause a mold problem. The claim representative informs Karl that he does not need to
retain the wet property. Is the action of the claim representative appropriate?
