AIC 302 SIMULATED EXAM fully solved &
updated (latest version verified for
accuracy) (Questions + Answers) Solved
100% Correct!!|| UPDATED 2026
Conor is handling an auto claim involving the death of a minor child in a state that
recognizes the intrinsic value of children. Conor's proposed settlement amount will
include -CORRECTANSWER A calculated value of the child's future services to the
parents.
A calculated value of the child's future services to the parents. Intrinsic value of children
is the assumption that parents invest in children knowing that they will provide for them
when they are older
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? -
CORRECTANSWER Formula method involves a mathematical formula set by actuaries
to set reserves.
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 -CORRECTANSWER Was covered because it was an unavoidable
consequence of the back injury. An intervening problem is covered if it is an
unavoidable consequence of the first injury.
Some personal auto policies provide that someone could reasonably expect to be
allowed to use an insured's vehicle even if they did not ask specifically, such as a
relative visiting from out of town. This is called -CORRECTANSWER Implied
permission.
Some policies provide for implied permission for the use of an insured's auto.
In determining coverage for emotional injury, a claims rep must understand applicable
policy language.
Which one of the following is correct? -CORRECTANSWER The term "harm" is
potentially broader than the term "injury"
in determining coverage for emotional injury.
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? -CORRECTANSWER Pain and suffering can only be
claimed if the decedent was conscious of the pain and suffering before dying.
, Claims reps can isolate specific coverage issues that should be investigated to
determine whether exclusions apply by using a series of yes-or-no questions in the form
of a -CORRECTANSWER Decision tree.
Claims reps can isolate specific coverage issues that should be investigated to
determine whether exclusions apply by using a series of yes-or-no questions in the form
of a decision tree.
Caitlin was involved in a multi-car accident on a highway. The claims representative for
her insurance company is making a case that distracted driving by Mike, one of the
other drivers involved in the accident, was a contributing cause of the accident. The
records indicate that Mike was using a hands-free device at the time of the accident.
Which one of the following statements is true regarding the use of a hands-free device
while driving? -CORRECTANSWER The use of a hands-free device while driving can
lead to a cognitive distraction.
Sean is an auto liability claims representative. He is working on a claim involving an
insured driver who rear-ended another vehicle while driving in heavy traffic. No one was
injured, but there was $3,400 in damage to the other vehicle. Which one of the following
statements is correct regarding this accident? -CORRECTANSWER All four elements of
negligence exist in this accident. There was a duty owed to others to operate the vehicle
safely, that duty was breached, and was the proximate cause of the resulting $3,400 in
damages. There is no clear evidence of negligence per se provided.
updated (latest version verified for
accuracy) (Questions + Answers) Solved
100% Correct!!|| UPDATED 2026
Conor is handling an auto claim involving the death of a minor child in a state that
recognizes the intrinsic value of children. Conor's proposed settlement amount will
include -CORRECTANSWER A calculated value of the child's future services to the
parents.
A calculated value of the child's future services to the parents. Intrinsic value of children
is the assumption that parents invest in children knowing that they will provide for them
when they are older
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? -
CORRECTANSWER Formula method involves a mathematical formula set by actuaries
to set reserves.
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 -CORRECTANSWER Was covered because it was an unavoidable
consequence of the back injury. An intervening problem is covered if it is an
unavoidable consequence of the first injury.
Some personal auto policies provide that someone could reasonably expect to be
allowed to use an insured's vehicle even if they did not ask specifically, such as a
relative visiting from out of town. This is called -CORRECTANSWER Implied
permission.
Some policies provide for implied permission for the use of an insured's auto.
In determining coverage for emotional injury, a claims rep must understand applicable
policy language.
Which one of the following is correct? -CORRECTANSWER The term "harm" is
potentially broader than the term "injury"
in determining coverage for emotional injury.
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? -CORRECTANSWER Pain and suffering can only be
claimed if the decedent was conscious of the pain and suffering before dying.
, Claims reps can isolate specific coverage issues that should be investigated to
determine whether exclusions apply by using a series of yes-or-no questions in the form
of a -CORRECTANSWER Decision tree.
Claims reps can isolate specific coverage issues that should be investigated to
determine whether exclusions apply by using a series of yes-or-no questions in the form
of a decision tree.
Caitlin was involved in a multi-car accident on a highway. The claims representative for
her insurance company is making a case that distracted driving by Mike, one of the
other drivers involved in the accident, was a contributing cause of the accident. The
records indicate that Mike was using a hands-free device at the time of the accident.
Which one of the following statements is true regarding the use of a hands-free device
while driving? -CORRECTANSWER The use of a hands-free device while driving can
lead to a cognitive distraction.
Sean is an auto liability claims representative. He is working on a claim involving an
insured driver who rear-ended another vehicle while driving in heavy traffic. No one was
injured, but there was $3,400 in damage to the other vehicle. Which one of the following
statements is correct regarding this accident? -CORRECTANSWER All four elements of
negligence exist in this accident. There was a duty owed to others to operate the vehicle
safely, that duty was breached, and was the proximate cause of the resulting $3,400 in
damages. There is no clear evidence of negligence per se provided.
