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AIC 300 CLAIMS IN AN EVOLVING WORLD EXAM, PRACTICE EXAM AND
STUDY GUIDE NEWEST 2025-2026 ACTUAL EXAM 100 QUESTIONS AND
CORRECT DETAILED ANSWERS, ALREADY RATED A+
1)
A claims adjuster is reviewing a case involving a self-driving car accident. What is the
most significant emerging issue in such claims?
A. Driver negligence
B. Manufacturer liability
C. Weather conditions
D. Witness credibility
Answer: B.
Why: In autonomous vehicle accidents, liability often shifts from driver error to
product/manufacturer liability.
2)
A policyholder reports a loss but delays filing the claim for six months. What principle
may limit coverage?
A. Proximate cause
B. Timely notice requirement
C. Utmost good faith
D. Subrogation
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Answer: B.
Why: Most policies require prompt notice; unreasonable delay can jeopardize claim
validity.
3)
Which of the following best describes “subrogation” in claims handling?
A. Transferring claim to another insurer
B. Insurer’s right to recover from third party after payment
C. Adjuster negotiating settlement directly
D. Arbitration between insurers
Answer: B.
Why: Subrogation allows insurers to seek reimbursement from at-fault third parties.
4)
A claims adjuster must investigate whether a claimant exaggerated an injury. This
process is part of which function?
A. Coverage analysis
B. Fraud detection
C. Salvage recovery
D. Litigation management
Answer: B.
Why: Fraud detection is a critical component of claims handling in evolving insurance
markets.
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5)
A wildfire destroys multiple homes. Which claims handling challenge is most relevant?
A. Moral hazard
B. Catastrophe (CAT) management
C. Loss control engineering
D. Arbitration
Answer: B.
Why: Large-scale disasters require CAT claims management due to volume and severity.
6)
Which principle ensures insurers and policyholders act honestly and fairly during claims?
A. Proximate cause
B. Utmost good faith
C. Indemnity
D. Contribution
Answer: B.
Why: The insurance contract is based on utmost good faith (uberrimae fidei).
7)
An adjuster identifies coverage but disputes the settlement amount with the claimant.
What process is commonly used to resolve this?
A. Subrogation
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B. Arbitration or appraisal
C. Salvage sale
D. Mediation only
Answer: B.
Why: Arbitration/appraisal resolves claim value disputes without full litigation.
8)
Cyber liability claims are growing due to hacking and ransomware. What is the biggest
challenge for adjusters in such cases?
A. Property valuation
B. Determining proximate cause
C. Quantifying intangible losses
D. Witness availability
Answer: C.
Why: Cyber claims involve intangible losses (data, reputation, downtime) that are hard to
quantify.
9)
Which of the following is an example of a first-party claim?
A. Insured sues negligent driver
B. Insured files for fire damage under homeowner’s policy
C. Pedestrian sues insured driver
D. Business is sued for negligence
AIC 300 CLAIMS IN AN EVOLVING WORLD EXAM, PRACTICE EXAM AND
STUDY GUIDE NEWEST 2025-2026 ACTUAL EXAM 100 QUESTIONS AND
CORRECT DETAILED ANSWERS, ALREADY RATED A+
1)
A claims adjuster is reviewing a case involving a self-driving car accident. What is the
most significant emerging issue in such claims?
A. Driver negligence
B. Manufacturer liability
C. Weather conditions
D. Witness credibility
Answer: B.
Why: In autonomous vehicle accidents, liability often shifts from driver error to
product/manufacturer liability.
2)
A policyholder reports a loss but delays filing the claim for six months. What principle
may limit coverage?
A. Proximate cause
B. Timely notice requirement
C. Utmost good faith
D. Subrogation
,2|Page
Answer: B.
Why: Most policies require prompt notice; unreasonable delay can jeopardize claim
validity.
3)
Which of the following best describes “subrogation” in claims handling?
A. Transferring claim to another insurer
B. Insurer’s right to recover from third party after payment
C. Adjuster negotiating settlement directly
D. Arbitration between insurers
Answer: B.
Why: Subrogation allows insurers to seek reimbursement from at-fault third parties.
4)
A claims adjuster must investigate whether a claimant exaggerated an injury. This
process is part of which function?
A. Coverage analysis
B. Fraud detection
C. Salvage recovery
D. Litigation management
Answer: B.
Why: Fraud detection is a critical component of claims handling in evolving insurance
markets.
,3|Page
5)
A wildfire destroys multiple homes. Which claims handling challenge is most relevant?
A. Moral hazard
B. Catastrophe (CAT) management
C. Loss control engineering
D. Arbitration
Answer: B.
Why: Large-scale disasters require CAT claims management due to volume and severity.
6)
Which principle ensures insurers and policyholders act honestly and fairly during claims?
A. Proximate cause
B. Utmost good faith
C. Indemnity
D. Contribution
Answer: B.
Why: The insurance contract is based on utmost good faith (uberrimae fidei).
7)
An adjuster identifies coverage but disputes the settlement amount with the claimant.
What process is commonly used to resolve this?
A. Subrogation
, 4|Page
B. Arbitration or appraisal
C. Salvage sale
D. Mediation only
Answer: B.
Why: Arbitration/appraisal resolves claim value disputes without full litigation.
8)
Cyber liability claims are growing due to hacking and ransomware. What is the biggest
challenge for adjusters in such cases?
A. Property valuation
B. Determining proximate cause
C. Quantifying intangible losses
D. Witness availability
Answer: C.
Why: Cyber claims involve intangible losses (data, reputation, downtime) that are hard to
quantify.
9)
Which of the following is an example of a first-party claim?
A. Insured sues negligent driver
B. Insured files for fire damage under homeowner’s policy
C. Pedestrian sues insured driver
D. Business is sued for negligence
