AIC 304 ACTUAL EXAMS TEST PAPER QUESTIONS
AND ANSWERS SURE A+
✔✔When a policy calls for the primary/excess method to be used and both insurers
agree which policy is excess and which is primary, - ✔✔A. The primary insurer pays the
full loss amount and subrogates for the excess insurer's portion.
B. The primary and excess insurers place an amount adequate to cover the loss in
escrow.
C. The excess insurer pays first, up to its applicable limit of insurance.
D. The primary insurer pays first, up to its applicable limit of insurance.
D
✔✔Under the BPP coinsurance provision, if an insured does not carry enough
insurance, loss payments are reduced proportionately, an outcome known as the -
✔✔A. Coverage adjustment.
B. Underinsurance surcharge.
C. Coinsurance penalty.
D. Insurance-to-value provision.
C
✔✔A widely used financial institution bond is - ✔✔A. The Insurance Services Office
Financial Institution Crime Policy for Banks and Saving Institutions.
, B. The fidelity bond.
C. The commercial general liability fiduciary bond.
D. Standard Form No. 24.
D
✔✔Shondra owns a commercial office building and holds an insurance policy that
applies one deductible for most causes of loss but a different, higher deductible for
other specified causes. This is called a(n) - ✔✔A. Conditional deductible.
B. Hybrid deductible.
C. Split deductible.
D. Percentage deductible.
C
✔✔The agreed value settlement provision establishes the amount the insurer will pay
for a total loss in a property damage claim - ✔✔A. When determined in a court of law.
B. Immediately upon occurrence of the loss.
C. At the outset of coverage.
D. Upon arbitration of the final loss amount.
C
✔✔Miyu is adjusting a large claim involving merchandise loss for an insured business.
She has conducted an initial inspection of the premises and the damaged merchandise,
gained a preliminary idea of the scope of damage, outlined the claims handling process
with the insured, and exercised her right to access the insured's books and records.
Which one of the following of Miyu's actions should reveal whether a complete physical
inventory should be conducted or is even possible? - ✔✔A. Conducting initial inspection
B. Determining scope of damage
C. Accessing books and records
D. Outlining claims handling process
A
✔✔Most forms of earthquake coverage are subject to a - ✔✔A. Hybrid deductible.
B. Split deductible.
C. Percentage deductible.
D. Flat deductible.
C
✔✔To identify affected areas and every insured in those areas immediately following a
catastrophe, insurers will typically - ✔✔A. Engage independent adjusters.
B. Gather details from online news reporting.
AND ANSWERS SURE A+
✔✔When a policy calls for the primary/excess method to be used and both insurers
agree which policy is excess and which is primary, - ✔✔A. The primary insurer pays the
full loss amount and subrogates for the excess insurer's portion.
B. The primary and excess insurers place an amount adequate to cover the loss in
escrow.
C. The excess insurer pays first, up to its applicable limit of insurance.
D. The primary insurer pays first, up to its applicable limit of insurance.
D
✔✔Under the BPP coinsurance provision, if an insured does not carry enough
insurance, loss payments are reduced proportionately, an outcome known as the -
✔✔A. Coverage adjustment.
B. Underinsurance surcharge.
C. Coinsurance penalty.
D. Insurance-to-value provision.
C
✔✔A widely used financial institution bond is - ✔✔A. The Insurance Services Office
Financial Institution Crime Policy for Banks and Saving Institutions.
, B. The fidelity bond.
C. The commercial general liability fiduciary bond.
D. Standard Form No. 24.
D
✔✔Shondra owns a commercial office building and holds an insurance policy that
applies one deductible for most causes of loss but a different, higher deductible for
other specified causes. This is called a(n) - ✔✔A. Conditional deductible.
B. Hybrid deductible.
C. Split deductible.
D. Percentage deductible.
C
✔✔The agreed value settlement provision establishes the amount the insurer will pay
for a total loss in a property damage claim - ✔✔A. When determined in a court of law.
B. Immediately upon occurrence of the loss.
C. At the outset of coverage.
D. Upon arbitration of the final loss amount.
C
✔✔Miyu is adjusting a large claim involving merchandise loss for an insured business.
She has conducted an initial inspection of the premises and the damaged merchandise,
gained a preliminary idea of the scope of damage, outlined the claims handling process
with the insured, and exercised her right to access the insured's books and records.
Which one of the following of Miyu's actions should reveal whether a complete physical
inventory should be conducted or is even possible? - ✔✔A. Conducting initial inspection
B. Determining scope of damage
C. Accessing books and records
D. Outlining claims handling process
A
✔✔Most forms of earthquake coverage are subject to a - ✔✔A. Hybrid deductible.
B. Split deductible.
C. Percentage deductible.
D. Flat deductible.
C
✔✔To identify affected areas and every insured in those areas immediately following a
catastrophe, insurers will typically - ✔✔A. Engage independent adjusters.
B. Gather details from online news reporting.
