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AIC 2026 ACTUAL QUESTIONS WITH
VERIFIED ANSWERS.
1) Your insured, a sole proprietor, purchased a building valued
at $1 million. The insurance policy has a coinsurance clause
based on the replacement cost value of 90%. Contrary to your
advice, your insured insures the building for only $500,000. He
suffers a windstorm loss totalling $150,000. How much will the
insurer pay?
a) $75,000
b)$83,333
c)$150,000
d) $93,755 - correct answer-b
2) An insured property is covered by two separate commercial
policies placed with two different insurers. Insurer A's policy has
a limit of $100,000 and Insurer B's policy has a limit of
$200,000. The insured suffers an insurable loss of $230,000.
Assuming no deductibles apply, how much will each insurer
pay?
a) Insurer A will pay $100,000. Insurer B will pay $130,000
b)Insurer A will pay $100,000. Insurer B will pay $200,000
c) Insurer A will pay $76,659. Insurer B will pay $153,341
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d) Neither insurer will pay. Two policies on the same property
are prohibited - correct answer-c
3) On a Commercial Building, Equipment, and Stock Form, that
insures the building owner, which of the following would not be
included under the "building" definition?
a) Growing plants and trees inside the building used for
decorative purposes
b)Building maintenance supplies
c) Fixed structures pertaining to the building
d) Temporary fixtures and fittings - correct answer-d
4) Under a Commercial Building, Equipment, and Stock
insurance policy, the definition of "stock" includes
a) merchandise of every description usual to the insured's
business, including packing and wrapping materials
b)advertising material usual to the insured's business
c) all stock including similar property belonging to others for
which the insured is obligated to insure
d) all of the above - correct answer-d
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5) The Commercial Building, Equipment, and Stock insurance
policy identifies three types of equipment for which coverage is
provided. Which of the following is NOT one of these three
types?
a) Tenants' improvements and betterments if the insured does
not own the building
b)Packing materials used to ship stock
c) Property belonging to others for which the insured is legally
liable
d) The contents usual to the business the insured is engaged
in, other than stock - correct answer-b
stock6) The basic principle of business interruption insurance is
a) to arrange alternate employment for employees while the
building is being repaired following an insured loss
b)to restore the premises to the condition they were in before
the loss
c) to cover the cost of relocating the business
d) to restore the income that would have been earned had the
business not been interrupted - correct answer-d
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7) On a commercial crime insurance policy, employee
dishonesty insurance
a) is provided on a discovery basis
b)is also known as fidelity insurance
c) protects insured against dishonest acts committed by
employees, alone or in collusion with others
d) all of the above - correct answer-d
8) Which of the following losses normally excluded under a
boiler and machinery policy can be added by endorsement?
a) Fireb)Nuclear reaction or radioactive contamination
c) Increased costs due to the enforcement of a bylaw regulating
building construction
d) War related losses - correct answer-c
9) A surety bond
a) is a contract between two parties
b)protects the surety
c) provides security to a party entering into a contractual
agreement with another
AIC 2026 ACTUAL QUESTIONS WITH
VERIFIED ANSWERS.
1) Your insured, a sole proprietor, purchased a building valued
at $1 million. The insurance policy has a coinsurance clause
based on the replacement cost value of 90%. Contrary to your
advice, your insured insures the building for only $500,000. He
suffers a windstorm loss totalling $150,000. How much will the
insurer pay?
a) $75,000
b)$83,333
c)$150,000
d) $93,755 - correct answer-b
2) An insured property is covered by two separate commercial
policies placed with two different insurers. Insurer A's policy has
a limit of $100,000 and Insurer B's policy has a limit of
$200,000. The insured suffers an insurable loss of $230,000.
Assuming no deductibles apply, how much will each insurer
pay?
a) Insurer A will pay $100,000. Insurer B will pay $130,000
b)Insurer A will pay $100,000. Insurer B will pay $200,000
c) Insurer A will pay $76,659. Insurer B will pay $153,341
, Page | 2
d) Neither insurer will pay. Two policies on the same property
are prohibited - correct answer-c
3) On a Commercial Building, Equipment, and Stock Form, that
insures the building owner, which of the following would not be
included under the "building" definition?
a) Growing plants and trees inside the building used for
decorative purposes
b)Building maintenance supplies
c) Fixed structures pertaining to the building
d) Temporary fixtures and fittings - correct answer-d
4) Under a Commercial Building, Equipment, and Stock
insurance policy, the definition of "stock" includes
a) merchandise of every description usual to the insured's
business, including packing and wrapping materials
b)advertising material usual to the insured's business
c) all stock including similar property belonging to others for
which the insured is obligated to insure
d) all of the above - correct answer-d
, Page | 3
5) The Commercial Building, Equipment, and Stock insurance
policy identifies three types of equipment for which coverage is
provided. Which of the following is NOT one of these three
types?
a) Tenants' improvements and betterments if the insured does
not own the building
b)Packing materials used to ship stock
c) Property belonging to others for which the insured is legally
liable
d) The contents usual to the business the insured is engaged
in, other than stock - correct answer-b
stock6) The basic principle of business interruption insurance is
a) to arrange alternate employment for employees while the
building is being repaired following an insured loss
b)to restore the premises to the condition they were in before
the loss
c) to cover the cost of relocating the business
d) to restore the income that would have been earned had the
business not been interrupted - correct answer-d
, Page | 4
7) On a commercial crime insurance policy, employee
dishonesty insurance
a) is provided on a discovery basis
b)is also known as fidelity insurance
c) protects insured against dishonest acts committed by
employees, alone or in collusion with others
d) all of the above - correct answer-d
8) Which of the following losses normally excluded under a
boiler and machinery policy can be added by endorsement?
a) Fireb)Nuclear reaction or radioactive contamination
c) Increased costs due to the enforcement of a bylaw regulating
building construction
d) War related losses - correct answer-c
9) A surety bond
a) is a contract between two parties
b)protects the surety
c) provides security to a party entering into a contractual
agreement with another
