AIC 304 STUDY EXAM SCRIPT 2026 TEST
PAPER QUESTIONS AND SOLUTIONS GRADED
A+
◉ A typically available cyber risk coverage that includes payment of
fines and penalties is. Answer: Regulatory action.
Correct. A typically available cyber risk coverage that includes
payment of fines and penalties is regulatory action.
◉ Which one of the following statements about defense coverage in
the typical professional liability insurance policy is most accurate.
Answer: Although professional liability policies differ, most policies
pay for defense costs as long as they fall within the limits of the
policy.
Correct. Although professional liability policies differ, most policies
pay for defense costs as long as they fall within the limits of the
policy.
◉ Samuel is a retired dentist who practiced in the same town for
thirty years. His professional liability coverage was with the same
insurer for the last ten years of his career. The policies were written
on a claims-made basis with a retroactive date of January 1, 2001
and a five-year extended reporting period. Samuel cancelled his
professional liability policy when he retired on July 1, 2011. On
March 15, 2013 a former patient filed a sexual abuse claim against
,Samuel. The alleged incident occurred on March 17, 2011. Which
one of the following best describes how Samuel's professional
liability coverage will respond?. Answer: The coverage will not apply
because the claim did not arise out of the rendering or failing to
render professional dental services.
◉ Which one of the following terms contained in the HO-3 policy is
defined as an accident, including continuous or repeated exposure to
the same general harmful conditions?. Answer: An occurrence is an
accident, including continuous or repeated exposure to the same
general harmful conditions.
◉ Which one of the following statements is correct with respect to
eligibility for coverage under a businessowners policy (BOP)?.
Answer: BOP eligibility rules are based on the size of the business
and the complexity of loss exposures.
◉ Umbrella liability insurance. Answer: May cover some claims that
are not covered by underlying liability insurance.
◉ Which one of the following best describes the differences between
a following-form excess liability policy and a self-contained excess
liability policy?. Answer: A self-contained excess liability policy is
subject only to its own provisions.
,◉ All of the following are included as insureds under the Section
II—Liability Coverages of a homeowners policy, EXCEPT:. Answer:
The named insured's separated spouse who resides and works in
another state
Correct. All the people in the answer choices are insureds under the
policy except for the separated spouse of the named insured who
does not reside with the named insured. To qualify as an insured, the
spouse of the named insured must be a resident of the same
household as the named insured.
◉ Personal umbrella policies usually cover the insured's liability for
personal injury. Under the Personal Umbrella Liability Policy, which
one of the following is included under the definition of personal
injury?. Answer: False Arrest
Under the Personal Umbrella Liability Policy, false arrest is included
under the definition of personal injury.
◉ Which one of the following major sections of the general liability
coverage form would be found only in a form with a claims-made
trigger?. Answer: Extended Reporting Periods
Correct. The Extended Reporting Periods section is only found in
general liability forms with a claims-made trigger.
◉ In which one of the following situations would media liability
cyber coverage apply?. Answer: A marketing employee inadvertently
uses a copyrighted photo on the WidgetCorp website.
, Correct. Media liability coverage relates to an organization's liability
for material published on its own website.
◉ One of the three basic forms of excess liability insurance policies
is designed so that it incorporates the provisions of the underlying
policy and then modifies those provisions with additional conditions
or exclusions in the excess liability policy. That type of excess
liability policy form is known as. Answer: A combination excess
liability policy.
◉ Claims alleging property damage, bodily injury, or financial loss
are common against some professionals. Which one of the following
professionals is most likely to encounter all three varieties of
claims?. Answer: Architect professionals commonly encounter all
three varieties of claims.
◉ Which one of the following regarding the use of recorded
statements is most accurate?. Answer: Because they are more
efficient, companies have turned almost exclusively to recorded
statements.
◉ To respond to common customer inquiries such as claims status
updates, many insurers are deploying technology in the form of.
Answer: Chatbots powered by artificial intelligence are used to
answer questions and interact with customers online.
PAPER QUESTIONS AND SOLUTIONS GRADED
A+
◉ A typically available cyber risk coverage that includes payment of
fines and penalties is. Answer: Regulatory action.
Correct. A typically available cyber risk coverage that includes
payment of fines and penalties is regulatory action.
◉ Which one of the following statements about defense coverage in
the typical professional liability insurance policy is most accurate.
Answer: Although professional liability policies differ, most policies
pay for defense costs as long as they fall within the limits of the
policy.
Correct. Although professional liability policies differ, most policies
pay for defense costs as long as they fall within the limits of the
policy.
◉ Samuel is a retired dentist who practiced in the same town for
thirty years. His professional liability coverage was with the same
insurer for the last ten years of his career. The policies were written
on a claims-made basis with a retroactive date of January 1, 2001
and a five-year extended reporting period. Samuel cancelled his
professional liability policy when he retired on July 1, 2011. On
March 15, 2013 a former patient filed a sexual abuse claim against
,Samuel. The alleged incident occurred on March 17, 2011. Which
one of the following best describes how Samuel's professional
liability coverage will respond?. Answer: The coverage will not apply
because the claim did not arise out of the rendering or failing to
render professional dental services.
◉ Which one of the following terms contained in the HO-3 policy is
defined as an accident, including continuous or repeated exposure to
the same general harmful conditions?. Answer: An occurrence is an
accident, including continuous or repeated exposure to the same
general harmful conditions.
◉ Which one of the following statements is correct with respect to
eligibility for coverage under a businessowners policy (BOP)?.
Answer: BOP eligibility rules are based on the size of the business
and the complexity of loss exposures.
◉ Umbrella liability insurance. Answer: May cover some claims that
are not covered by underlying liability insurance.
◉ Which one of the following best describes the differences between
a following-form excess liability policy and a self-contained excess
liability policy?. Answer: A self-contained excess liability policy is
subject only to its own provisions.
,◉ All of the following are included as insureds under the Section
II—Liability Coverages of a homeowners policy, EXCEPT:. Answer:
The named insured's separated spouse who resides and works in
another state
Correct. All the people in the answer choices are insureds under the
policy except for the separated spouse of the named insured who
does not reside with the named insured. To qualify as an insured, the
spouse of the named insured must be a resident of the same
household as the named insured.
◉ Personal umbrella policies usually cover the insured's liability for
personal injury. Under the Personal Umbrella Liability Policy, which
one of the following is included under the definition of personal
injury?. Answer: False Arrest
Under the Personal Umbrella Liability Policy, false arrest is included
under the definition of personal injury.
◉ Which one of the following major sections of the general liability
coverage form would be found only in a form with a claims-made
trigger?. Answer: Extended Reporting Periods
Correct. The Extended Reporting Periods section is only found in
general liability forms with a claims-made trigger.
◉ In which one of the following situations would media liability
cyber coverage apply?. Answer: A marketing employee inadvertently
uses a copyrighted photo on the WidgetCorp website.
, Correct. Media liability coverage relates to an organization's liability
for material published on its own website.
◉ One of the three basic forms of excess liability insurance policies
is designed so that it incorporates the provisions of the underlying
policy and then modifies those provisions with additional conditions
or exclusions in the excess liability policy. That type of excess
liability policy form is known as. Answer: A combination excess
liability policy.
◉ Claims alleging property damage, bodily injury, or financial loss
are common against some professionals. Which one of the following
professionals is most likely to encounter all three varieties of
claims?. Answer: Architect professionals commonly encounter all
three varieties of claims.
◉ Which one of the following regarding the use of recorded
statements is most accurate?. Answer: Because they are more
efficient, companies have turned almost exclusively to recorded
statements.
◉ To respond to common customer inquiries such as claims status
updates, many insurers are deploying technology in the form of.
Answer: Chatbots powered by artificial intelligence are used to
answer questions and interact with customers online.
