AIC 300 CLAIMS IN AN EVOLVING WORLD
EXAM, PRACTICE EXAM
AND STUDY GUIDE NEWEST 2025 ACTUAL
EXAM 120 QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED
ANSWERS) WITH EXPLANATIONS |ALREADY
GRADED A+
Insurers usually send denial letters
Select one:
A. By email to ensure prompt receipt by the insured.
B. By certified mail with a return receipt requested.
C. By overnight courier.
D. By registered mail. - answer-B. By certified mail with a return receipt requested.
Some will also send a copy via regular mail in case the certified letter is not accepted.
As methods of communication evolve, it's important for claims professionals to remember that any
written claims communication may be Select one:
A. Replaced with verbal communication.
B. Misinterpreted.
C. Edited later.
D. Subpoenaed. - answer-D. Subpoenaed.
Any written claims communication may be subpoenaed.
In which one of the following scenarios is a public adjuster most likely to become involved?
Select one:
A. An insurer finds it financially unfeasible to hire its own claims staff in a given state.
B. An insured is unable to afford legal representation to contest a claim.
C. A catastrophic disaster strikes, involving damage to many properties.
,D. An insured's negotiations with the insurer on a complex claim are not going well. - answer-D. An
insured's negotiations with the insurer on a complex claim are not going well.
If a claim is complex, or if settlement negotiations are not progressing with the insurer, the insured may
hire a public adjuster to protect his or her interests.
Which one of the following statements regarding third-party administrators (TPAs) is most accurate?
Select one:
A. TPAs are typically used by businesses that have chosen not to self-insure.
B. TPAs handle claims, keep claims records, and perform statistical analyses.
C. TPAs are generally found in an insurer's claims department.
D. TPAs are employed only by independent adjusting firms. - answer-B. TPAs handle claims, keep claims
records, and perform statistical analyses.
Hugo is conducting an audit of a branch office claims operation. He is evaluating timeliness of reports,
number of files opened, proper releases taken, and accuracy of data entry. Which one of Hugo's metrics
is a qualitative audit factor?
Select one:
A. Proper releases taken
B. Timeliness of reports
C. Number of files opened
D. Accuracy of data entry - answer-A. Proper releases taken
Proper releases taken is a qualitative audit factor; the others are quantitative.
Aaron works for a multi-line insurer. He works with insurance producers and applicants to evaluate new
business submissions and conduct renewal underwriting. Aaron is a
Select one:
A. Staff underwriter.
B. Public underwriter.
C. Personal lines underwriter.
D. Line underwriter. - answer-D. Line underwriter.
,Line underwriter. This describes the duties of a line underwriter, rather than a staff underwriter. There is
not enough information to determine which line of business is being written. A public underwriter does
not exist. Line underwriters evaluate new submissions and perform renewal underwriting, usually by
working directly with insurance producers and applicants. Staff underwriters, meanwhile, manage risk
selection by working with line underwriters and coordinating decisions about products, pricing and
guidelines.
The first key to communicating empathetically as a claims professional is
Select one:
A. A comprehensive understanding of relevant insurance policies.
B. Speaking calmly and clearly.
C. Being prepared with all documentation relating to the claim.
D. Listening. - answer-D. Listening.
Claims professionals should first listen carefully to understand what the claimant is saying.
Mia tracks loss adjustment expense (LAE) as part of her management of the claims department for an
insurer. Mia considers LAE to be the
Select one:
A. Total amount of loss reserves of all claims.
B. Paid portion of claims.
C. Cost to investigate, defend, and settle claims.
D. Total incurred amount of claims. - answer-C. Cost to investigate, defend, and settle claims.
Cost to investigate, defend, and settle claims. LAE is the expense that an insurer incurs to investigate,
defend, and settle claims according to the terms specified in the insurance policy.
In her role with an insurer, Katarina has opportunity to collaborate with not only employees from her
company, but also external experts with particular expertise. For example, as part of her investigation,
she hired an engineer to conduct a review of a machine that was involved in a personal injury. Katarina is
a(n)
Select one:
A. Medical provider.
B. Expert Witness.
, C. Premium auditor.
D. Claim representative. - answer-D. Claim representative.
Claim reps collaborate with more than other insurer employees. Many insurers employ a panel of
experts that the claims rep can select according to the investigation's needs.
When Mehmet interviews witnesses as part of his claims investigation, he asks different types of
questions based on need, such as open-ended, direct, indirect, and leading. Which type of question
should Mehmet ask when he wants to set the interviewee at ease and he is looking for explanation or
elaboration of details in the interviewee's own words?
Select one:
A. Open-ended
B. Direct
C. Indirect
D. Leading - answer-A. Open-ended
Open-ended questions can be used to clarify an interviewee's statements.
Charlotte is handling a new claim and she has set the initial reserves at $1,000,000. She has been asked
to complete an internal report summarizing all the file status information for distribution to
management and updated as more information is received. The report Charlotte is completing is most
likely a
Select one:
A. Status report.
B. Summarized report.
C. Preliminary report.
D. Large loss report. - answer-D. Large loss report.
Most insurers have guidelines outlining when and under what circumstances large loss reports should be
prepared.
In which one of the following scenarios is the right of subrogation most likely to be employed by the
insurer?
Select one:
A. An insured files a homeowners claim for stolen jewelry. An investigation reveals that the jewelry is still
in the insured's possession.
EXAM, PRACTICE EXAM
AND STUDY GUIDE NEWEST 2025 ACTUAL
EXAM 120 QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED
ANSWERS) WITH EXPLANATIONS |ALREADY
GRADED A+
Insurers usually send denial letters
Select one:
A. By email to ensure prompt receipt by the insured.
B. By certified mail with a return receipt requested.
C. By overnight courier.
D. By registered mail. - answer-B. By certified mail with a return receipt requested.
Some will also send a copy via regular mail in case the certified letter is not accepted.
As methods of communication evolve, it's important for claims professionals to remember that any
written claims communication may be Select one:
A. Replaced with verbal communication.
B. Misinterpreted.
C. Edited later.
D. Subpoenaed. - answer-D. Subpoenaed.
Any written claims communication may be subpoenaed.
In which one of the following scenarios is a public adjuster most likely to become involved?
Select one:
A. An insurer finds it financially unfeasible to hire its own claims staff in a given state.
B. An insured is unable to afford legal representation to contest a claim.
C. A catastrophic disaster strikes, involving damage to many properties.
,D. An insured's negotiations with the insurer on a complex claim are not going well. - answer-D. An
insured's negotiations with the insurer on a complex claim are not going well.
If a claim is complex, or if settlement negotiations are not progressing with the insurer, the insured may
hire a public adjuster to protect his or her interests.
Which one of the following statements regarding third-party administrators (TPAs) is most accurate?
Select one:
A. TPAs are typically used by businesses that have chosen not to self-insure.
B. TPAs handle claims, keep claims records, and perform statistical analyses.
C. TPAs are generally found in an insurer's claims department.
D. TPAs are employed only by independent adjusting firms. - answer-B. TPAs handle claims, keep claims
records, and perform statistical analyses.
Hugo is conducting an audit of a branch office claims operation. He is evaluating timeliness of reports,
number of files opened, proper releases taken, and accuracy of data entry. Which one of Hugo's metrics
is a qualitative audit factor?
Select one:
A. Proper releases taken
B. Timeliness of reports
C. Number of files opened
D. Accuracy of data entry - answer-A. Proper releases taken
Proper releases taken is a qualitative audit factor; the others are quantitative.
Aaron works for a multi-line insurer. He works with insurance producers and applicants to evaluate new
business submissions and conduct renewal underwriting. Aaron is a
Select one:
A. Staff underwriter.
B. Public underwriter.
C. Personal lines underwriter.
D. Line underwriter. - answer-D. Line underwriter.
,Line underwriter. This describes the duties of a line underwriter, rather than a staff underwriter. There is
not enough information to determine which line of business is being written. A public underwriter does
not exist. Line underwriters evaluate new submissions and perform renewal underwriting, usually by
working directly with insurance producers and applicants. Staff underwriters, meanwhile, manage risk
selection by working with line underwriters and coordinating decisions about products, pricing and
guidelines.
The first key to communicating empathetically as a claims professional is
Select one:
A. A comprehensive understanding of relevant insurance policies.
B. Speaking calmly and clearly.
C. Being prepared with all documentation relating to the claim.
D. Listening. - answer-D. Listening.
Claims professionals should first listen carefully to understand what the claimant is saying.
Mia tracks loss adjustment expense (LAE) as part of her management of the claims department for an
insurer. Mia considers LAE to be the
Select one:
A. Total amount of loss reserves of all claims.
B. Paid portion of claims.
C. Cost to investigate, defend, and settle claims.
D. Total incurred amount of claims. - answer-C. Cost to investigate, defend, and settle claims.
Cost to investigate, defend, and settle claims. LAE is the expense that an insurer incurs to investigate,
defend, and settle claims according to the terms specified in the insurance policy.
In her role with an insurer, Katarina has opportunity to collaborate with not only employees from her
company, but also external experts with particular expertise. For example, as part of her investigation,
she hired an engineer to conduct a review of a machine that was involved in a personal injury. Katarina is
a(n)
Select one:
A. Medical provider.
B. Expert Witness.
, C. Premium auditor.
D. Claim representative. - answer-D. Claim representative.
Claim reps collaborate with more than other insurer employees. Many insurers employ a panel of
experts that the claims rep can select according to the investigation's needs.
When Mehmet interviews witnesses as part of his claims investigation, he asks different types of
questions based on need, such as open-ended, direct, indirect, and leading. Which type of question
should Mehmet ask when he wants to set the interviewee at ease and he is looking for explanation or
elaboration of details in the interviewee's own words?
Select one:
A. Open-ended
B. Direct
C. Indirect
D. Leading - answer-A. Open-ended
Open-ended questions can be used to clarify an interviewee's statements.
Charlotte is handling a new claim and she has set the initial reserves at $1,000,000. She has been asked
to complete an internal report summarizing all the file status information for distribution to
management and updated as more information is received. The report Charlotte is completing is most
likely a
Select one:
A. Status report.
B. Summarized report.
C. Preliminary report.
D. Large loss report. - answer-D. Large loss report.
Most insurers have guidelines outlining when and under what circumstances large loss reports should be
prepared.
In which one of the following scenarios is the right of subrogation most likely to be employed by the
insurer?
Select one:
A. An insured files a homeowners claim for stolen jewelry. An investigation reveals that the jewelry is still
in the insured's possession.
