AIC 304 ACTUAL EXAM COMPREHENSIVE
QUESTIONS AND ANSWERS SURE A+
✔✔The process of reviewing actual incurred expenses and partial sales against
projections done before the end of the loss period is called - ✔✔A. Cross-checking.
B. Auditing.
C. Expense verification.
D. Reconciliation.
D
✔✔Annual transit policies and trip transit policies typically use which one of the
following methods to value shipments between a seller and a buyer? - ✔✔A. Invoice
price
B. Original cost
C. Selling price
D. Market value
A
✔✔Greene Café rents retail space on the first floor of an office building. Greene Café's
a Commercial General Liability (CGL) Coverage Form provides "fire legal liability" or
"damage to premises rented to you". The "fire legal liability" coverage - ✔✔A. Applies to
both real and personal property in the Greene's care, custody, and control.
, B. Provides for a broad range of perils when the property is rented over seven
consecutive days.
C. Excludes coverage for premises temporarily used by Greene Café.
D. Provides limited coverage for liability arising out of the part of the building rented to
Greene.
D
✔✔In business income insurance, the expenses that an organization would not have
incurred if the business interruption had not occurred are called - ✔✔A. Continuing
expenses.
B. Excludable expenses.
C. Extra expenses.
D. Contingent expenses.
C
✔✔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? - ✔✔A. Flammable materials
B. Fire protection system
C. Damaged inventory
D. Multiple fires
D
✔✔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 - ✔✔A.
Improvements and betterments.
B. Leaseholder enhancements.
C. Personal property of others.
D. Building fixtures and fittings.
A
✔✔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? - ✔✔A. Photograph
B. Instruction manual
C. Warranty
D. Original receipt
QUESTIONS AND ANSWERS SURE A+
✔✔The process of reviewing actual incurred expenses and partial sales against
projections done before the end of the loss period is called - ✔✔A. Cross-checking.
B. Auditing.
C. Expense verification.
D. Reconciliation.
D
✔✔Annual transit policies and trip transit policies typically use which one of the
following methods to value shipments between a seller and a buyer? - ✔✔A. Invoice
price
B. Original cost
C. Selling price
D. Market value
A
✔✔Greene Café rents retail space on the first floor of an office building. Greene Café's
a Commercial General Liability (CGL) Coverage Form provides "fire legal liability" or
"damage to premises rented to you". The "fire legal liability" coverage - ✔✔A. Applies to
both real and personal property in the Greene's care, custody, and control.
, B. Provides for a broad range of perils when the property is rented over seven
consecutive days.
C. Excludes coverage for premises temporarily used by Greene Café.
D. Provides limited coverage for liability arising out of the part of the building rented to
Greene.
D
✔✔In business income insurance, the expenses that an organization would not have
incurred if the business interruption had not occurred are called - ✔✔A. Continuing
expenses.
B. Excludable expenses.
C. Extra expenses.
D. Contingent expenses.
C
✔✔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? - ✔✔A. Flammable materials
B. Fire protection system
C. Damaged inventory
D. Multiple fires
D
✔✔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 - ✔✔A.
Improvements and betterments.
B. Leaseholder enhancements.
C. Personal property of others.
D. Building fixtures and fittings.
A
✔✔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? - ✔✔A. Photograph
B. Instruction manual
C. Warranty
D. Original receipt
