AIC 304 - : (DETERMINING
CLAIM PAYMENTS) EXAM
QUESTIONS AND THEIR REVIEWED
SOLUTIONS
What are items subject to accelerated depreciation?
cars, electronics, power tools, computers
What are items subject to decelerated depreciation?
items with an expiry date. food, batteries, medicine
What does the Buyback of Surrendered Property
provision allow?
option to buy back the damaged property from the insurer
for an agreed upon price, while still receiving the full claim
payment.
What does the Manufacturer's Selling Price (Finished
"Stock" Only) endorsement insure?
finished stock manufactured by the insured, sold or
unsold, for its selling price.
What different ways are valuations of tenants
improvements and betterments handled?
-If the tenant promptly repairs or replaces the
improvements, the tenant's insurer will pay the ACV of the
damaged property unless the tenant purchased
Replacement Cost optional coverage.
-If the tenant does not promptly repair or replace the
improvements, the tenant's insurer is obligated to pay only
a pro rata portion of the original cost; the ACV or
CLAIM PAYMENTS) EXAM
QUESTIONS AND THEIR REVIEWED
SOLUTIONS
What are items subject to accelerated depreciation?
cars, electronics, power tools, computers
What are items subject to decelerated depreciation?
items with an expiry date. food, batteries, medicine
What does the Buyback of Surrendered Property
provision allow?
option to buy back the damaged property from the insurer
for an agreed upon price, while still receiving the full claim
payment.
What does the Manufacturer's Selling Price (Finished
"Stock" Only) endorsement insure?
finished stock manufactured by the insured, sold or
unsold, for its selling price.
What different ways are valuations of tenants
improvements and betterments handled?
-If the tenant promptly repairs or replaces the
improvements, the tenant's insurer will pay the ACV of the
damaged property unless the tenant purchased
Replacement Cost optional coverage.
-If the tenant does not promptly repair or replace the
improvements, the tenant's insurer is obligated to pay only
a pro rata portion of the original cost; the ACV or
