AIC 304 PRACTICE TEST 2026 COMPLETE
QUESTIONS AND ANSWERS FULLY SOLVED
◉Balance sheet. Answer: The financial statement that reports the
assets, liabilities, and owners' equity of an organization as of a
specific date.
◉Out-of-sight merchandise. Answer: Merchandise that has been
damaged beyond recognition.
◉Cost of goods sold. Answer: An expense representing the cost of
merchandise sold to customers during the period.
◉Cost-to-sales ratio. Answer: Cost of goods sold divided by retail
sales.
◉Appraisal. Answer: A method of resolving disputes between
insurers and insureds over the amount owed on a covered loss.
◉Subrogation. Answer: The process by which an insurer can, after it
has paid a loss under the policy, recover the amount paid from any
party (other than the insured) who caused the loss or is otherwise
legally liable for the loss.
, ◉Spoliation of evidence. Answer: The destruction or significant
alteration of physical evidence.
◉Prejudiced (due to late notice). Answer: When an insurer's ability
to investigate, settle, or defend a claim is adversely affected by an
insured's late notice of loss.
◉Public adjusters are most often involved in. Answer: Fire claims.
◉An individual who stands to suffer a monetary loss if a given
property were damaged, destroyed, lost, or stolen is said to have.
Answer: An insurable interest in the property.
◉To identify affected areas and every insured in those areas
immediately following a catastrophe, insurers will typically. Answer:
Deploy an initial survey team.
◉In a property loss, statements may be taken from the insured and
any witnesses to establish the extent of the loss, the cause of the
loss, and the property's. Answer: Ownership.
◉Which one of the following loss scenarios would be most likely to
require review of an insured's general ledger, banking records and
tax statements?. Answer: An insured claims loss of business income
QUESTIONS AND ANSWERS FULLY SOLVED
◉Balance sheet. Answer: The financial statement that reports the
assets, liabilities, and owners' equity of an organization as of a
specific date.
◉Out-of-sight merchandise. Answer: Merchandise that has been
damaged beyond recognition.
◉Cost of goods sold. Answer: An expense representing the cost of
merchandise sold to customers during the period.
◉Cost-to-sales ratio. Answer: Cost of goods sold divided by retail
sales.
◉Appraisal. Answer: A method of resolving disputes between
insurers and insureds over the amount owed on a covered loss.
◉Subrogation. Answer: The process by which an insurer can, after it
has paid a loss under the policy, recover the amount paid from any
party (other than the insured) who caused the loss or is otherwise
legally liable for the loss.
, ◉Spoliation of evidence. Answer: The destruction or significant
alteration of physical evidence.
◉Prejudiced (due to late notice). Answer: When an insurer's ability
to investigate, settle, or defend a claim is adversely affected by an
insured's late notice of loss.
◉Public adjusters are most often involved in. Answer: Fire claims.
◉An individual who stands to suffer a monetary loss if a given
property were damaged, destroyed, lost, or stolen is said to have.
Answer: An insurable interest in the property.
◉To identify affected areas and every insured in those areas
immediately following a catastrophe, insurers will typically. Answer:
Deploy an initial survey team.
◉In a property loss, statements may be taken from the insured and
any witnesses to establish the extent of the loss, the cause of the
loss, and the property's. Answer: Ownership.
◉Which one of the following loss scenarios would be most likely to
require review of an insured's general ledger, banking records and
tax statements?. Answer: An insured claims loss of business income
