AIC 301 FINAL EXAM PREP
AIC 301 FINAL EXAM PREP NEWEST 2026 ACTUAL EXAM
COMPLETE 100 QUESTIONS AND CORRECT DETAILED ANSWERS
(VERIFIED ANSWERS) |ALREADY GRADED A+
James wants to pursue a legal claim against his neighbor, but he does not know
what kind of dispute resolution procedure is the best choice for his situation. The
dispute is over a relatively small amount of money, so James does not want to
spend a lot in pursuit of his claim. James wants to be able to present his side of
the story and his witnesses before a neutral third party. James would be pleased if
he and his neighbor could reach a compromise, but, ideally, James wants to be
able to walk away with a binding decision. Assuming that James' neighbor will
agree to participate in whatever procedure James suggests, which one of the
following dispute resolution procedures is the best choice for James?
Select one:
A. Mediation
B. Negotiation
C. Arbitration
D. Litigation - Correct Answer-C. Arbitration
Chloe is investigating Thomas' claim for damage to his automobile. Thomas is not
cooperating with Chloe's attempts to schedule an adjuster to inspect the vehicle.
Chloe should
Select one:
A. Issue a unilateral waiver of rights letter.
B. Issue a unilateral reservation of rights letter.
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, AIC 301 FINAL EXAM PREP
C. Issue denial for failure to cooperate.
D. Ask Thomas to sign a reservation of rights letter. - Correct Answer-B. Issue a
unilateral reservation of rights letter.
Cathy left a bracelet at a jeweler for repair and was given a receipt with the
statement, "This establishment is not responsible for loss or damage to any item
left in its possession." Which one of the following does the statement on the
receipt represent?
Select one:
A. Assumption of risk
B. Comparative negligence
C. A hold harmless agreement
D. An exculpatory clause - Correct Answer-D. An exculpatory clause
Blithe Insurance wanted to enter the Jeweler's Block insurance market and began
drafting a new Jeweler's Block policy and insurance application form. Blithe
believed it was critical that all insureds under this policy must have a silent alarm
system. Because Blithe would not want to write Jeweler's Block insurance for any
customer that did not have a silent alarm, Blithe should draft its application and
policy so that the customer's application statement about whether it has a silent
alarm would be
Select one:
A. A warranty because an untrue statement would render the policy voidable,
even if not material.
B. An incontestable clause because the insured could not dispute the truth of the
statement.
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, AIC 301 FINAL EXAM PREP
C. A designation because designated matters must be satisfied as a condition of
coverage.
D. A representation because strict compliance with representations is required. -
Correct Answer-A. A warranty because an untrue statement would render the
policy voidable, even if not material. If the statement is a warranty, if it is untrue,
the insurer may deny coverage even if it doesn't involve a material matter.
Warranties require strict compliance but representations only require substantial
truth.
Tommy agreed to mow Heidi's lawn on Wednesday for $35. Tommy then
remembered that he had a baseball game on Wednesday. He asked Heidi if it
would be okay for his friend, Jeremy, to mow her lawn, and Heidi could just pay
the $35 directly to Jeremy. Heidi expressly released Tommy from his obligation.
This agreement is known as
Select one:
A. Contract reformation.
B. A novation.
C. An accord and satisfaction.
D. Substantial performance. - Correct Answer-B. A novation.
The act of leaving a dangerous article such as a gun or car with a person who the
lender knows, or should know, is likely to use it in an unreasonably risky manner is
known as
Select one:
A. Negligent entrustment.
B. Contributory negligence.
C. Negligent supervision.
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AIC 301 FINAL EXAM PREP NEWEST 2026 ACTUAL EXAM
COMPLETE 100 QUESTIONS AND CORRECT DETAILED ANSWERS
(VERIFIED ANSWERS) |ALREADY GRADED A+
James wants to pursue a legal claim against his neighbor, but he does not know
what kind of dispute resolution procedure is the best choice for his situation. The
dispute is over a relatively small amount of money, so James does not want to
spend a lot in pursuit of his claim. James wants to be able to present his side of
the story and his witnesses before a neutral third party. James would be pleased if
he and his neighbor could reach a compromise, but, ideally, James wants to be
able to walk away with a binding decision. Assuming that James' neighbor will
agree to participate in whatever procedure James suggests, which one of the
following dispute resolution procedures is the best choice for James?
Select one:
A. Mediation
B. Negotiation
C. Arbitration
D. Litigation - Correct Answer-C. Arbitration
Chloe is investigating Thomas' claim for damage to his automobile. Thomas is not
cooperating with Chloe's attempts to schedule an adjuster to inspect the vehicle.
Chloe should
Select one:
A. Issue a unilateral waiver of rights letter.
B. Issue a unilateral reservation of rights letter.
1|Page
, AIC 301 FINAL EXAM PREP
C. Issue denial for failure to cooperate.
D. Ask Thomas to sign a reservation of rights letter. - Correct Answer-B. Issue a
unilateral reservation of rights letter.
Cathy left a bracelet at a jeweler for repair and was given a receipt with the
statement, "This establishment is not responsible for loss or damage to any item
left in its possession." Which one of the following does the statement on the
receipt represent?
Select one:
A. Assumption of risk
B. Comparative negligence
C. A hold harmless agreement
D. An exculpatory clause - Correct Answer-D. An exculpatory clause
Blithe Insurance wanted to enter the Jeweler's Block insurance market and began
drafting a new Jeweler's Block policy and insurance application form. Blithe
believed it was critical that all insureds under this policy must have a silent alarm
system. Because Blithe would not want to write Jeweler's Block insurance for any
customer that did not have a silent alarm, Blithe should draft its application and
policy so that the customer's application statement about whether it has a silent
alarm would be
Select one:
A. A warranty because an untrue statement would render the policy voidable,
even if not material.
B. An incontestable clause because the insured could not dispute the truth of the
statement.
2|Page
, AIC 301 FINAL EXAM PREP
C. A designation because designated matters must be satisfied as a condition of
coverage.
D. A representation because strict compliance with representations is required. -
Correct Answer-A. A warranty because an untrue statement would render the
policy voidable, even if not material. If the statement is a warranty, if it is untrue,
the insurer may deny coverage even if it doesn't involve a material matter.
Warranties require strict compliance but representations only require substantial
truth.
Tommy agreed to mow Heidi's lawn on Wednesday for $35. Tommy then
remembered that he had a baseball game on Wednesday. He asked Heidi if it
would be okay for his friend, Jeremy, to mow her lawn, and Heidi could just pay
the $35 directly to Jeremy. Heidi expressly released Tommy from his obligation.
This agreement is known as
Select one:
A. Contract reformation.
B. A novation.
C. An accord and satisfaction.
D. Substantial performance. - Correct Answer-B. A novation.
The act of leaving a dangerous article such as a gun or car with a person who the
lender knows, or should know, is likely to use it in an unreasonably risky manner is
known as
Select one:
A. Negligent entrustment.
B. Contributory negligence.
C. Negligent supervision.
3|Page
