AIC ACTUAL EXAM PAPER 2026
QUESTIONS WITH ANSWERS GRADED A+
◍ Deposition.
Answer: a pretrial discovery tool involving the oral examination of a
witness, to produce a written verbatim record, usually with attorneys and a
court reporter present
◍ NICB.
Answer: National Insurance Crime Bureau. A non-profit organization to
prevent, detect and defeat insurance fraud
◍ Summary Jury Trial (Mock Jury Trial).
Answer: ADR in which disputing parties participate in an abbreviated trial,
presenting evidence of a few witness to a panel of Mock Jurors who decide
the case. (non binding) Again, show weaknesses and facilities negotiation.
◍ Lose - Lose.
Answer: an agreement cant be reached, it goes into litigation. Neither party
is concerned about a "good" outcome, it is an adversarial postion
◍ Compensatory Damages.
Answer: designed to make the person whole again. Awarded to reimburse
for actual harm
◍ Insurable Interest.
Answer: an ownership in the property that is not unduly remote, and if lost
would cause the person financial harm if an insured event occurred.
◍ Pleading.
Answer: a formal written statement of facts and claims of each party to the
law suit
◍ Quantitative Measures.
, Answer: can have actual numbers assigned, such as number of claims
opened and percentage of subrogation recovery
◍ Third Party Focus.
Answer: Liability, Coverage, and Amount of damage
◍ Terminal Credibility.
Answer: how believable were they after the end of the conversation
◍ Third Party.
Answer: Claimant
◍ Motives for Insurance Fraud.
Answer: financial gain, profit or savings. sense of entitlement. participation
in organized crime
◍ False Representation Statute.
Answer: Allows the post office to hold the mall anyone found by the postal
inspectors to be committing fraud.
◍ Contractual Damage.
Answer: the amount payable under the terms of the contract
◍ ADR - Alternative Dispute Resolution.
Answer: Procedures to help settle disputes without litigation. Ex:
Arbitration, formal appraisal, mini-trial, summary jury trials, and mediation.
(or negotiation, but no dispute)
◍ N.
A. I.C.
Answer: The National Association of Insurance Commissioners
◍ Pro Rata Contribution.
Answer: an approach to other insurance by which the insurers contribute to
the loss in the proportion to which they contribute to the total amount of
coverage purchased. (their limits of liability)
◍ Expert System.
Answer: Using a software application to set a reserve based on information
, entered
◍ Qualitative Measures.
Answer: related to intangible measures. nothing concrete, did they do a good
job? do they have good negotiation skills?
◍ Motion.
Answer: a formal request for an action to be taken
◍ Individual Case Method.
Answer: the adjuster sets the reserve based on the facts of the case, and the
adjusters experience with similar claims
◍ Initial Credibility.
Answer: the degree to which the person is believed before the conversation
begins
◍ Loss Reserve.
Answer: an estimate of the amount of money the insurer expects to pay out
on the claim. (includes IBNR claims)
◍ Intentional torts.
Answer: doing something on purpose to harm another. Slander, libel,
invasion of privacy, false arrest, assault, battery, etc..
◍ Encoding.
Answer: the process of translating the message once sent
◍ Motor Vehicle Theft Law Enforcement Act of 1984.
Answer: Required VIN numbers on all vehicles for theft reporting and
identification of stolen vehicles
◍ Decoding.
Answer: the interpretation of the message by the receiver
◍ Counter Claim.
Answer: a complaint brought by the defendant against the plaintiff
◍ Direct Question.
QUESTIONS WITH ANSWERS GRADED A+
◍ Deposition.
Answer: a pretrial discovery tool involving the oral examination of a
witness, to produce a written verbatim record, usually with attorneys and a
court reporter present
◍ NICB.
Answer: National Insurance Crime Bureau. A non-profit organization to
prevent, detect and defeat insurance fraud
◍ Summary Jury Trial (Mock Jury Trial).
Answer: ADR in which disputing parties participate in an abbreviated trial,
presenting evidence of a few witness to a panel of Mock Jurors who decide
the case. (non binding) Again, show weaknesses and facilities negotiation.
◍ Lose - Lose.
Answer: an agreement cant be reached, it goes into litigation. Neither party
is concerned about a "good" outcome, it is an adversarial postion
◍ Compensatory Damages.
Answer: designed to make the person whole again. Awarded to reimburse
for actual harm
◍ Insurable Interest.
Answer: an ownership in the property that is not unduly remote, and if lost
would cause the person financial harm if an insured event occurred.
◍ Pleading.
Answer: a formal written statement of facts and claims of each party to the
law suit
◍ Quantitative Measures.
, Answer: can have actual numbers assigned, such as number of claims
opened and percentage of subrogation recovery
◍ Third Party Focus.
Answer: Liability, Coverage, and Amount of damage
◍ Terminal Credibility.
Answer: how believable were they after the end of the conversation
◍ Third Party.
Answer: Claimant
◍ Motives for Insurance Fraud.
Answer: financial gain, profit or savings. sense of entitlement. participation
in organized crime
◍ False Representation Statute.
Answer: Allows the post office to hold the mall anyone found by the postal
inspectors to be committing fraud.
◍ Contractual Damage.
Answer: the amount payable under the terms of the contract
◍ ADR - Alternative Dispute Resolution.
Answer: Procedures to help settle disputes without litigation. Ex:
Arbitration, formal appraisal, mini-trial, summary jury trials, and mediation.
(or negotiation, but no dispute)
◍ N.
A. I.C.
Answer: The National Association of Insurance Commissioners
◍ Pro Rata Contribution.
Answer: an approach to other insurance by which the insurers contribute to
the loss in the proportion to which they contribute to the total amount of
coverage purchased. (their limits of liability)
◍ Expert System.
Answer: Using a software application to set a reserve based on information
, entered
◍ Qualitative Measures.
Answer: related to intangible measures. nothing concrete, did they do a good
job? do they have good negotiation skills?
◍ Motion.
Answer: a formal request for an action to be taken
◍ Individual Case Method.
Answer: the adjuster sets the reserve based on the facts of the case, and the
adjusters experience with similar claims
◍ Initial Credibility.
Answer: the degree to which the person is believed before the conversation
begins
◍ Loss Reserve.
Answer: an estimate of the amount of money the insurer expects to pay out
on the claim. (includes IBNR claims)
◍ Intentional torts.
Answer: doing something on purpose to harm another. Slander, libel,
invasion of privacy, false arrest, assault, battery, etc..
◍ Encoding.
Answer: the process of translating the message once sent
◍ Motor Vehicle Theft Law Enforcement Act of 1984.
Answer: Required VIN numbers on all vehicles for theft reporting and
identification of stolen vehicles
◍ Decoding.
Answer: the interpretation of the message by the receiver
◍ Counter Claim.
Answer: a complaint brought by the defendant against the plaintiff
◍ Direct Question.
