AIC 304 EXAM ACTUAL UPDATED QUESTIONS
AND ANSWERS SURE A+
✔✔Trailer - ✔✔Fuel configured in a manner to spread a fire.
✔✔Alibi - ✔✔An assertion that the party in question was elsewhere at the time the crime
occurred.
✔✔Specified perils - ✔✔A method of designating the covered perils (causes of loss) in a
property insurance policy by naming them in the policy.
✔✔Open perils - ✔✔A method of designating covered perils (causes of loss) in a
property insurance policy by covering direct physical loss unless the policy excludes it.
✔✔Theft - ✔✔The taking of personal property from its rightful owner, without the
owner's consent, with the intent to deprive the owner of its value.
✔✔Period of restoration - ✔✔The period during which business income loss is covered
under the BIC forms; it begins 72 hours after the physical loss occurs and ends when
the property is (or should have been) restored to use with reasonable speed. (With
regard to extra expense coverage, it begins immediately after the physical loss occurs.)
, ✔✔Reconciliation - ✔✔The process of matching the net income and continuing
expenses projections with the actual sales made and expenses incurred during the loss
period.
✔✔Ocean marine insurance - ✔✔Insurance that covers vessels and their cargoes,
including various vessel-related liability exposures.
✔✔Value Reporting Form - ✔✔A commercial property form that bases the insured's
premium for business personal property on the values that the insured reports to the
insurer periodically during the policy period.
✔✔Motor truck cargo liability policy - ✔✔Policy that covers a trucker's liability for
damage to cargo of others being transported by the trucker.
✔✔Bill of lading - ✔✔A document acknowledging receipt of goods from the shipper,
given by the carrier, which includes the terms of the contract of carriage for the goods.
✔✔Released value bill of lading - ✔✔A bill of lading in which the carrier charges a lower
freight rate (called a "released rate") in return for the shipper's allowing the carrier to
limit its liability for cargo losses.
✔✔Contractors' equipment - ✔✔The tools and machinery used in projects involving
construction, renovation, earth-moving, and other activities.
✔✔Contractors equipment floater - ✔✔A policy that covers mobile equipment or tools
while located anywhere in the coverage territory.
✔✔Manuscript form - ✔✔An insurance form that is drafted according to terms
negotiated between a specific insured (or group of insureds) and an insurer.
✔✔Constructive total loss - ✔✔A loss that occurs when the cost to repair damaged
property plus its remaining salvage value equals or exceeds the property's pre-loss
value.
✔✔Builders risk policy - ✔✔Policy that covers a building in the course of construction,
including building materials and supplies while on or away from the building site.
✔✔Soft costs - ✔✔Various incidental expenses that may result from physical loss or
from a delay in completion of a construction project, such as interest, real estate tax,
advertising, architects and engineers fees, and legal and accounting fees.
✔✔Clerk of the works - ✔✔An employee of a contractor who has sole responsibility for
the daily supervision of each project component to ensure that materials, methodology,
and quality of workmanship meet engineering specifications.
AND ANSWERS SURE A+
✔✔Trailer - ✔✔Fuel configured in a manner to spread a fire.
✔✔Alibi - ✔✔An assertion that the party in question was elsewhere at the time the crime
occurred.
✔✔Specified perils - ✔✔A method of designating the covered perils (causes of loss) in a
property insurance policy by naming them in the policy.
✔✔Open perils - ✔✔A method of designating covered perils (causes of loss) in a
property insurance policy by covering direct physical loss unless the policy excludes it.
✔✔Theft - ✔✔The taking of personal property from its rightful owner, without the
owner's consent, with the intent to deprive the owner of its value.
✔✔Period of restoration - ✔✔The period during which business income loss is covered
under the BIC forms; it begins 72 hours after the physical loss occurs and ends when
the property is (or should have been) restored to use with reasonable speed. (With
regard to extra expense coverage, it begins immediately after the physical loss occurs.)
, ✔✔Reconciliation - ✔✔The process of matching the net income and continuing
expenses projections with the actual sales made and expenses incurred during the loss
period.
✔✔Ocean marine insurance - ✔✔Insurance that covers vessels and their cargoes,
including various vessel-related liability exposures.
✔✔Value Reporting Form - ✔✔A commercial property form that bases the insured's
premium for business personal property on the values that the insured reports to the
insurer periodically during the policy period.
✔✔Motor truck cargo liability policy - ✔✔Policy that covers a trucker's liability for
damage to cargo of others being transported by the trucker.
✔✔Bill of lading - ✔✔A document acknowledging receipt of goods from the shipper,
given by the carrier, which includes the terms of the contract of carriage for the goods.
✔✔Released value bill of lading - ✔✔A bill of lading in which the carrier charges a lower
freight rate (called a "released rate") in return for the shipper's allowing the carrier to
limit its liability for cargo losses.
✔✔Contractors' equipment - ✔✔The tools and machinery used in projects involving
construction, renovation, earth-moving, and other activities.
✔✔Contractors equipment floater - ✔✔A policy that covers mobile equipment or tools
while located anywhere in the coverage territory.
✔✔Manuscript form - ✔✔An insurance form that is drafted according to terms
negotiated between a specific insured (or group of insureds) and an insurer.
✔✔Constructive total loss - ✔✔A loss that occurs when the cost to repair damaged
property plus its remaining salvage value equals or exceeds the property's pre-loss
value.
✔✔Builders risk policy - ✔✔Policy that covers a building in the course of construction,
including building materials and supplies while on or away from the building site.
✔✔Soft costs - ✔✔Various incidental expenses that may result from physical loss or
from a delay in completion of a construction project, such as interest, real estate tax,
advertising, architects and engineers fees, and legal and accounting fees.
✔✔Clerk of the works - ✔✔An employee of a contractor who has sole responsibility for
the daily supervision of each project component to ensure that materials, methodology,
and quality of workmanship meet engineering specifications.
