Page 1 of 107
AIC 303 PRACTICE EXAM WITH ALL 350 QUESTIONS AND
CORRECT ANSWERS LATEST UPDATE JUST RELEASED
THIS YEAR
Which one of the following statements is most accurate?
A. Court decisions, statutes, and insurance regulations tend to vary from year to year but
remain consistent from state to state.
B. Court decisions, statutes, and insurance regulations may change from one year to the next
and vary from one state to another.
C. Court decisions, statutes, and insurance regulations tend to remain consistent from year to
year and from state to state.
D. Court decisions, statutes, and insurance regulations tend to remain consistent from year to
year but vary from state to state.
B. Court decisions, statutes, and insurance regulations may change from one year to the next
and vary from one state to another.
The typical personal umbrella policy includes coverage for personal injury liability, property
damage liability, and
A. Business pursuits.
B. Professional liability.
C. Defense costs.
D. Intentional injury.
C. Defense costs.
1
SUCCESS!
,Page 2 of 107
Under the Additional Coverages in Section Il—Liability Coverages of the HO-3 policy, the
insurer promises to pay certain claim expenses. These covered expenses include which one of
the following?
A. Any postjudgment interest that accrues before the plaintiff is paid by the insurer
B. An unlimited amount of wages lost by the insured while assisting in defense of a claim or
suit
C. The face amount of any bond the insured is required by the court to obtain
D. The premium on bonds in excess of the policy's Coverage E limit
A. Any postjudgment interest that accrues before the plaintiff is paid by the insurer
All of the following are included as insureds for Section Il coverages in the HO-3 policy,
EXCEPT:
A. Residents of the household who are under the age of 21 and in the care of the named
insured
B. Relatives of the named insured who are visiting in the household for the weekend
C. Any person legally responsible for an animal owned by the named insured
D. The spouse of the named insured, residing in the same household
B. Relatives of the named insured who are visiting in the household for the weekend
Which one of the following businesses would most likely be eligible for coverage under an ISO
Businessowners Policy?
A. Dry Cleaners — 20,000 square feet, gross sales of $2 million
B. Henri's Gourmet Restaurant — gross sales of $3 million, 40,000 square feet
C. Antique Auto Dealers — gross sales of $2 million
D. Convenience Store — gasoline sales 60 percent of gross sales, 25,000 square feet
D. Convenience Store — gasoline sales 60 percent of gross sales, 25,000 square feet
2
SUCCESS!
,Page 3 of 107
A consent-to-settle clause is generally found only in which one of the following types of
policy?
A. Automotive liability
B. Premises liability
C. Products liability
D. Professional liability
D. Professional liability
Physical evidence that is improperly handled or stored might be challenged in court because it
is no longer
A. Relevant.
B. Consequential.
C. Competent.
D. Material.
C. Competent.
LeeAnn, a claims representative, is handling a claim with unusual coverage and liability issues,
and believes her insurer would win if the case were to go to trial. She might wish to settle the
claim instead
A. To maintain goodwill with the insured.
B. Because a case of that type is not likely to occur again.
C. Because courts will generally favor the plaintiff.
D. Because an unfavorable court decision might then be applied to many other claims with
less merit.
D. Because an unfavorable court decision might then be applied to many other claims with less
merit.
3
SUCCESS!
, Page 4 of 107
All of the following exclusions are found in a typical personal umbrella policy, EXCEPT:
A. Personal injury
B. Aircraft liability
C. Professional liability
D. Nuclear energy
A. Personal injury
The additional coverage for loss assessment of the HO-3 policy provides up to $1,000
coverage
A. For charges assessed against the insured as a result of a hold harmless agreement to which
the insured is a party.
B. For charges assessed against the insured as a result of the insured rendering or failing to
render professional services to a third party.
C. For charges assessed against the insured for costs incurred by a volunteer fire department
in fighting a fire at the insured location.
D. For an assessment against the insured by a homeowners association for a part of damages
awarded against the homeowners association and not otherwise excluded in Section Il—
Liability Coverages.
D. For an assessment against the insured by a homeowners association for a part of damages
awarded against the homeowners association and not otherwise excluded in Section Il—Liability
Coverages.
Which one of the following statements is correct regarding most primary cyber risk policies?
A. Subsidiaries acquired during the policy period are excluded.
B. Cyber risk policies have an occurrence coverage trigger.
4
SUCCESS!
AIC 303 PRACTICE EXAM WITH ALL 350 QUESTIONS AND
CORRECT ANSWERS LATEST UPDATE JUST RELEASED
THIS YEAR
Which one of the following statements is most accurate?
A. Court decisions, statutes, and insurance regulations tend to vary from year to year but
remain consistent from state to state.
B. Court decisions, statutes, and insurance regulations may change from one year to the next
and vary from one state to another.
C. Court decisions, statutes, and insurance regulations tend to remain consistent from year to
year and from state to state.
D. Court decisions, statutes, and insurance regulations tend to remain consistent from year to
year but vary from state to state.
B. Court decisions, statutes, and insurance regulations may change from one year to the next
and vary from one state to another.
The typical personal umbrella policy includes coverage for personal injury liability, property
damage liability, and
A. Business pursuits.
B. Professional liability.
C. Defense costs.
D. Intentional injury.
C. Defense costs.
1
SUCCESS!
,Page 2 of 107
Under the Additional Coverages in Section Il—Liability Coverages of the HO-3 policy, the
insurer promises to pay certain claim expenses. These covered expenses include which one of
the following?
A. Any postjudgment interest that accrues before the plaintiff is paid by the insurer
B. An unlimited amount of wages lost by the insured while assisting in defense of a claim or
suit
C. The face amount of any bond the insured is required by the court to obtain
D. The premium on bonds in excess of the policy's Coverage E limit
A. Any postjudgment interest that accrues before the plaintiff is paid by the insurer
All of the following are included as insureds for Section Il coverages in the HO-3 policy,
EXCEPT:
A. Residents of the household who are under the age of 21 and in the care of the named
insured
B. Relatives of the named insured who are visiting in the household for the weekend
C. Any person legally responsible for an animal owned by the named insured
D. The spouse of the named insured, residing in the same household
B. Relatives of the named insured who are visiting in the household for the weekend
Which one of the following businesses would most likely be eligible for coverage under an ISO
Businessowners Policy?
A. Dry Cleaners — 20,000 square feet, gross sales of $2 million
B. Henri's Gourmet Restaurant — gross sales of $3 million, 40,000 square feet
C. Antique Auto Dealers — gross sales of $2 million
D. Convenience Store — gasoline sales 60 percent of gross sales, 25,000 square feet
D. Convenience Store — gasoline sales 60 percent of gross sales, 25,000 square feet
2
SUCCESS!
,Page 3 of 107
A consent-to-settle clause is generally found only in which one of the following types of
policy?
A. Automotive liability
B. Premises liability
C. Products liability
D. Professional liability
D. Professional liability
Physical evidence that is improperly handled or stored might be challenged in court because it
is no longer
A. Relevant.
B. Consequential.
C. Competent.
D. Material.
C. Competent.
LeeAnn, a claims representative, is handling a claim with unusual coverage and liability issues,
and believes her insurer would win if the case were to go to trial. She might wish to settle the
claim instead
A. To maintain goodwill with the insured.
B. Because a case of that type is not likely to occur again.
C. Because courts will generally favor the plaintiff.
D. Because an unfavorable court decision might then be applied to many other claims with
less merit.
D. Because an unfavorable court decision might then be applied to many other claims with less
merit.
3
SUCCESS!
, Page 4 of 107
All of the following exclusions are found in a typical personal umbrella policy, EXCEPT:
A. Personal injury
B. Aircraft liability
C. Professional liability
D. Nuclear energy
A. Personal injury
The additional coverage for loss assessment of the HO-3 policy provides up to $1,000
coverage
A. For charges assessed against the insured as a result of a hold harmless agreement to which
the insured is a party.
B. For charges assessed against the insured as a result of the insured rendering or failing to
render professional services to a third party.
C. For charges assessed against the insured for costs incurred by a volunteer fire department
in fighting a fire at the insured location.
D. For an assessment against the insured by a homeowners association for a part of damages
awarded against the homeowners association and not otherwise excluded in Section Il—
Liability Coverages.
D. For an assessment against the insured by a homeowners association for a part of damages
awarded against the homeowners association and not otherwise excluded in Section Il—Liability
Coverages.
Which one of the following statements is correct regarding most primary cyber risk policies?
A. Subsidiaries acquired during the policy period are excluded.
B. Cyber risk policies have an occurrence coverage trigger.
4
SUCCESS!
