AIC 304 STUDY ALL EXAMS GUIDE LATEST
QUESTIONS AND ANSWERS SURE A+
✔✔Which one of the following terms describes an outside person or organization hired
by an insured to represent the insured in a claim settlement?
Select one:
A. Freelance claims representative
B. Private adjuster
C. Independent claims representative
D. Public adjuster - ✔✔D. Public adjuster
✔✔Property owners who purchase an insurance policy should be listed on the policy as
Select one:
A. Bailees.
B. Beneficiaries.
C. Named insureds.
,D. Mortgageholders. - ✔✔C. Named insureds.
✔✔Mechelle is a claims representative who learns that an insured has engaged a public
adjuster to settle a loss from a fire at their home. Which one of the following explains
how this fact should affect Mechelle's handling of the claim?
Select one:
A. She should continue to attempt to communicate directly with the insured rather than
the public adjuster.
B. She should set aside additional claims reserves, since cases involving public
adjusters often settle for higher amounts.
C. She should handle the claim just as if she were dealing with the insured.
D. She should review each step with the insurer's legal counsel prior to communicating
with the adjuster or the insured. - ✔✔C. She should handle the claim just as if she were
dealing with the insured.
✔✔Which one of the following statements regarding bailee liability policies is correct?
Select one:
A. They are written to transfer liability from the property owner to the bailee.
B. The property owner is a named insured under the policy.
C. They are written to protect bailees against legal liability for damage to the property in
their care.
D. The insurer would make any payment to the property owner, regardless of liability. -
✔✔C. They are written to protect bailees against legal liability for damage to the
property in their care.
✔✔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?
Select one:
A. The claim payment is not reduced if the insured unintentionally reports values low.
B. Value reporting is an ideal way to insure property values that fluctuate substantially.
C. The savings in premium will always justify the cost of generating value reports.
, D. The claim payment is not reduced if the insured reports its property values late. -
✔✔B. Value reporting is an ideal way to insure property values that fluctuate
substantially.
✔✔Josh has just built a large kennel in his backyard for his pet dogs. The kennel
includes a heated shed and access to a large fenced area. Josh wants to make sure he
has adequate insurance limits under his homeowners policy so that he can replace the
kennel if it is damaged. Which one of the coverage limits should Josh check on his
homeowners policy to determine whether his coverage on the kennel is adequate?
Select one:
A. Coverage A—Dwelling
B. Coverage B—Other Structures
C. Coverage C—Personal Property
D. Coverage D—Loss of Use - ✔✔B. Coverage B—Other Structures
✔✔Melissa recommended the Brands and Labels endorsement to her policyholder that
operates a high-end men's clothing store. The Brands and Labels endorsement
Select one:
A. Prohibits salvage of products to prevent damaged goods from entering the
marketplace.
B. Allows an insurer to indemnify at a higher value due to the quality of the brand and
label.
C. Permits a higher loss payment to replace a product with a similar brand or label.
D. Protects the reputation of the insured's goods when the insurer takes property as
salvage. - ✔✔D. Protects the reputation of the insured's goods when the insurer takes
property as salvage.
✔✔Which one of the following is a policy that covers the crime loss exposures of
financial institutions such as banks, savings and loan institutions, and insurance
companies?
Select one:
A. Commercial General Liability Crime Form
B. Fidelity bond
C. Standard Form number 381
QUESTIONS AND ANSWERS SURE A+
✔✔Which one of the following terms describes an outside person or organization hired
by an insured to represent the insured in a claim settlement?
Select one:
A. Freelance claims representative
B. Private adjuster
C. Independent claims representative
D. Public adjuster - ✔✔D. Public adjuster
✔✔Property owners who purchase an insurance policy should be listed on the policy as
Select one:
A. Bailees.
B. Beneficiaries.
C. Named insureds.
,D. Mortgageholders. - ✔✔C. Named insureds.
✔✔Mechelle is a claims representative who learns that an insured has engaged a public
adjuster to settle a loss from a fire at their home. Which one of the following explains
how this fact should affect Mechelle's handling of the claim?
Select one:
A. She should continue to attempt to communicate directly with the insured rather than
the public adjuster.
B. She should set aside additional claims reserves, since cases involving public
adjusters often settle for higher amounts.
C. She should handle the claim just as if she were dealing with the insured.
D. She should review each step with the insurer's legal counsel prior to communicating
with the adjuster or the insured. - ✔✔C. She should handle the claim just as if she were
dealing with the insured.
✔✔Which one of the following statements regarding bailee liability policies is correct?
Select one:
A. They are written to transfer liability from the property owner to the bailee.
B. The property owner is a named insured under the policy.
C. They are written to protect bailees against legal liability for damage to the property in
their care.
D. The insurer would make any payment to the property owner, regardless of liability. -
✔✔C. They are written to protect bailees against legal liability for damage to the
property in their care.
✔✔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?
Select one:
A. The claim payment is not reduced if the insured unintentionally reports values low.
B. Value reporting is an ideal way to insure property values that fluctuate substantially.
C. The savings in premium will always justify the cost of generating value reports.
, D. The claim payment is not reduced if the insured reports its property values late. -
✔✔B. Value reporting is an ideal way to insure property values that fluctuate
substantially.
✔✔Josh has just built a large kennel in his backyard for his pet dogs. The kennel
includes a heated shed and access to a large fenced area. Josh wants to make sure he
has adequate insurance limits under his homeowners policy so that he can replace the
kennel if it is damaged. Which one of the coverage limits should Josh check on his
homeowners policy to determine whether his coverage on the kennel is adequate?
Select one:
A. Coverage A—Dwelling
B. Coverage B—Other Structures
C. Coverage C—Personal Property
D. Coverage D—Loss of Use - ✔✔B. Coverage B—Other Structures
✔✔Melissa recommended the Brands and Labels endorsement to her policyholder that
operates a high-end men's clothing store. The Brands and Labels endorsement
Select one:
A. Prohibits salvage of products to prevent damaged goods from entering the
marketplace.
B. Allows an insurer to indemnify at a higher value due to the quality of the brand and
label.
C. Permits a higher loss payment to replace a product with a similar brand or label.
D. Protects the reputation of the insured's goods when the insurer takes property as
salvage. - ✔✔D. Protects the reputation of the insured's goods when the insurer takes
property as salvage.
✔✔Which one of the following is a policy that covers the crime loss exposures of
financial institutions such as banks, savings and loan institutions, and insurance
companies?
Select one:
A. Commercial General Liability Crime Form
B. Fidelity bond
C. Standard Form number 381
