AIC 304 STUDY ACTUAL TEST PAPER 2026
COMPLETE QUESTIONS AND SOLUTIONS
GRADED A+
◉ Benjamin is a claims representative handling a merchandise loss.
He needs someone to prepare an inventory of the damaged goods,
verify their value, preserve damaged items, locate the best market
for salvageable items, and oversee the sale. Benjamin should hire
a(n). Answer: A. Wholesaler.
B. Salvor.
C. Public adjuster.
D. Junk dealer.
B
◉ Philip is a claims representative for Goshen Insurance. He is
working on a motor truck cargo (MTC) liability claim and is trying to
determine if the entity facing legal liability for the cargo loss is an
insured under the MTC policy. In addition to the blanket MTC policy,
Philip will need to review which one of the following?. Answer: A.
The schedule of vehicles
B. The insured's trip transit policy
C. The schedule of terminals
,D. The carrier section of the bill of lading
D
◉ Brenda and Tyrone are homeowners with a monthly mortgage of
$1,200. Their home sustains damage from a fire, and restoration is
expected to take several months to complete. They rent an
apartment with a monthly rent of $1,500 to occupy during
restoration. Which one of the following statements regarding their
additional living expenses under Coverage D in ISO homeowners
policy forms is most accurate?. Answer: A. They would be covered
for $2,700, the total of both their mortgage and the rent on their
temporary apartment.
B. They would be covered for $1,500 a month, the full rent on their
temporary apartment.
C. They would be covered for $300 a month, the difference between
their mortgage and temporary monthly rent.
D. There would be no coverage, as additional living expenses are
provided only if the temporary housing expense is equal to or less
than that of the damaged property.
B
◉ Katarina is a claims representative who is discussing a property
loss incident with the insured. She has asked him if a violent
, expansion of air occurred, if a loud noise was reported, and if a
sudden and violent outbreak of physical forces occurred. Katarina is
trying to determine. Answer: A. Whether a fire occurred.
B. Grounds for denying the claim.
C. Whether an explosion occurred.
D. Grounds for accepting the claim.
C
◉ Alex is a claims adjuster handling a claim for theft of covered
property. Alex's first step should be to. Answer: A. Confirm who
owns the property that has been reported stolen.
B. Determine if theft is a covered loss and identify policy limitations.
C. Determine who has an insurable interest in the property.
D. Obtain a police report of the incident.
B
◉ Lamar holds an occurrence-based homeowners policy from
Gamma Insurance with an expiration date of July 31. He decides to
switch insurers, and executes a new policy with Upsilon Insurance to
take effect on August 1. On July 12th, a fire damages his home.
Repairs are expected to take several months, during which time
Lamar will need to rent an apartment. Which one of the following
COMPLETE QUESTIONS AND SOLUTIONS
GRADED A+
◉ Benjamin is a claims representative handling a merchandise loss.
He needs someone to prepare an inventory of the damaged goods,
verify their value, preserve damaged items, locate the best market
for salvageable items, and oversee the sale. Benjamin should hire
a(n). Answer: A. Wholesaler.
B. Salvor.
C. Public adjuster.
D. Junk dealer.
B
◉ Philip is a claims representative for Goshen Insurance. He is
working on a motor truck cargo (MTC) liability claim and is trying to
determine if the entity facing legal liability for the cargo loss is an
insured under the MTC policy. In addition to the blanket MTC policy,
Philip will need to review which one of the following?. Answer: A.
The schedule of vehicles
B. The insured's trip transit policy
C. The schedule of terminals
,D. The carrier section of the bill of lading
D
◉ Brenda and Tyrone are homeowners with a monthly mortgage of
$1,200. Their home sustains damage from a fire, and restoration is
expected to take several months to complete. They rent an
apartment with a monthly rent of $1,500 to occupy during
restoration. Which one of the following statements regarding their
additional living expenses under Coverage D in ISO homeowners
policy forms is most accurate?. Answer: A. They would be covered
for $2,700, the total of both their mortgage and the rent on their
temporary apartment.
B. They would be covered for $1,500 a month, the full rent on their
temporary apartment.
C. They would be covered for $300 a month, the difference between
their mortgage and temporary monthly rent.
D. There would be no coverage, as additional living expenses are
provided only if the temporary housing expense is equal to or less
than that of the damaged property.
B
◉ Katarina is a claims representative who is discussing a property
loss incident with the insured. She has asked him if a violent
, expansion of air occurred, if a loud noise was reported, and if a
sudden and violent outbreak of physical forces occurred. Katarina is
trying to determine. Answer: A. Whether a fire occurred.
B. Grounds for denying the claim.
C. Whether an explosion occurred.
D. Grounds for accepting the claim.
C
◉ Alex is a claims adjuster handling a claim for theft of covered
property. Alex's first step should be to. Answer: A. Confirm who
owns the property that has been reported stolen.
B. Determine if theft is a covered loss and identify policy limitations.
C. Determine who has an insurable interest in the property.
D. Obtain a police report of the incident.
B
◉ Lamar holds an occurrence-based homeowners policy from
Gamma Insurance with an expiration date of July 31. He decides to
switch insurers, and executes a new policy with Upsilon Insurance to
take effect on August 1. On July 12th, a fire damages his home.
Repairs are expected to take several months, during which time
Lamar will need to rent an apartment. Which one of the following
