AIC 304 UPDATED EXAMS SCRIPT TIPS
QUESTIONS AND ANSWERS SURE A+
✔✔Regina often recommends the Value Reporting Form to insureds in the
manufacturing and retail industries. Which one of the following is an advantage to the
Value Reporting Form? - ✔✔Value reporting is an ideal way to insure property values
that fluctuate substantially.
✔✔James was reviewing the Builders Risk Coverage Form (BRCF) with a new insured.
He explained that the Property Not Covered section of the BRCF applies to which one
of the following? - ✔✔Signs not attached to the building
✔✔Alterations or additions made to the building at the expense of an insured who does
not own the building and who cannot legally remove them are referred to as -
✔✔Improvements and betterments.
✔✔Which one of the following endorsements would be particularly useful to companies
in the clothing manufacturing business? - ✔✔Manufacturers' Consequential Loss
Assumption endorsement
✔✔A widely used financial institution bond is - ✔✔Standard Form No. 24.
, ✔✔Tom owns and occupies a home covered under an HO-3 policy. The property has a
detached garage that Tom does not use. One of Tom's neighbors has an extra car and
arranged to rent Tom's garage to store the car. Which one of the following is true of
Tom's HO-3 policy? - ✔✔The garage continues to be covered under Coverage B with
no changes in the policy.
✔✔Francesca is handling a claim for theft of property. She has asked the insured to
provide documentation of the theft of his television. The insured provided copies of the
warranty, the instruction manual, a photo of the television in his house, and the original
receipt. Which one of the following pieces of documentation provided by the
policyholder does Francesca considers to be the best? - ✔✔Original receipt
✔✔Magnus is a claims adjuster who has just received a claim for water damage to a
home from a broken pipe. At this point, Magnus' priority is to - ✔✔Make sure the insured
has begun the drying process.
✔✔Samuel has property coverage for his beach house that includes the standard water
exclusion. During a major storm, the property was damaged by waves that crested a
dune; flooding from torrential rain; a fire, which required firefighters to spray water to
extinguish; and a mudslide from a nearby hill that washed away. Which one of the
following sources of water damage would Samuel determine is covered by the policy? -
✔✔Water from fire hose
✔✔Alva is adjusting a homeowner's claim for fire damage. The policyholder had a
collection of rare antiques that were damaged in the fire. Alva is unfamiliar with the
damaged items, so to help her determine the amount of the loss she employs a(n) -
✔✔Antiques appraiser.
✔✔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) - ✔✔Salvor
✔✔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 - ✔✔Whether an explosion occurred.
✔✔Adam is adjusting a claim for fire damage to insured property and has gathered the
following facts: multiple fires were involved; the building typically contained flammable
materials; the insured's full warehouse of inventory was damaged; and the fire
protection system sounded normally. Which one of Adam's findings could lead him to
believe the fire was incendiary? - ✔✔Multiple fires
QUESTIONS AND ANSWERS SURE A+
✔✔Regina often recommends the Value Reporting Form to insureds in the
manufacturing and retail industries. Which one of the following is an advantage to the
Value Reporting Form? - ✔✔Value reporting is an ideal way to insure property values
that fluctuate substantially.
✔✔James was reviewing the Builders Risk Coverage Form (BRCF) with a new insured.
He explained that the Property Not Covered section of the BRCF applies to which one
of the following? - ✔✔Signs not attached to the building
✔✔Alterations or additions made to the building at the expense of an insured who does
not own the building and who cannot legally remove them are referred to as -
✔✔Improvements and betterments.
✔✔Which one of the following endorsements would be particularly useful to companies
in the clothing manufacturing business? - ✔✔Manufacturers' Consequential Loss
Assumption endorsement
✔✔A widely used financial institution bond is - ✔✔Standard Form No. 24.
, ✔✔Tom owns and occupies a home covered under an HO-3 policy. The property has a
detached garage that Tom does not use. One of Tom's neighbors has an extra car and
arranged to rent Tom's garage to store the car. Which one of the following is true of
Tom's HO-3 policy? - ✔✔The garage continues to be covered under Coverage B with
no changes in the policy.
✔✔Francesca is handling a claim for theft of property. She has asked the insured to
provide documentation of the theft of his television. The insured provided copies of the
warranty, the instruction manual, a photo of the television in his house, and the original
receipt. Which one of the following pieces of documentation provided by the
policyholder does Francesca considers to be the best? - ✔✔Original receipt
✔✔Magnus is a claims adjuster who has just received a claim for water damage to a
home from a broken pipe. At this point, Magnus' priority is to - ✔✔Make sure the insured
has begun the drying process.
✔✔Samuel has property coverage for his beach house that includes the standard water
exclusion. During a major storm, the property was damaged by waves that crested a
dune; flooding from torrential rain; a fire, which required firefighters to spray water to
extinguish; and a mudslide from a nearby hill that washed away. Which one of the
following sources of water damage would Samuel determine is covered by the policy? -
✔✔Water from fire hose
✔✔Alva is adjusting a homeowner's claim for fire damage. The policyholder had a
collection of rare antiques that were damaged in the fire. Alva is unfamiliar with the
damaged items, so to help her determine the amount of the loss she employs a(n) -
✔✔Antiques appraiser.
✔✔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) - ✔✔Salvor
✔✔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 - ✔✔Whether an explosion occurred.
✔✔Adam is adjusting a claim for fire damage to insured property and has gathered the
following facts: multiple fires were involved; the building typically contained flammable
materials; the insured's full warehouse of inventory was damaged; and the fire
protection system sounded normally. Which one of Adam's findings could lead him to
believe the fire was incendiary? - ✔✔Multiple fires
