AIC 302 SIMULATED EXAM QUESTIONS
WITH 100% COMPLETE SOLUTIONS|
LATEST UPDATE
Laura was injured in an auto accident due to the fault of the other driver. Her injury will
involve permanent impairment and will decrease her opportunity to earn a living. She
has incurred medical expenses and will continue to experience pain and suffering.
Which one of Laura's damages is considered a natural and necessary result of her
bodily injury? - correct answer-Pain and suffering are considered a "natural and
necessary" result of a claimant's bodily injury. A claimant is entitled to recover for pain
and suffering from an injury caused by the tortfeasor.
Aaron is a claims representative who has completed an investigation of a bodily injury
claim. Throughout the process, he gathered injury information and documents;
monitored and updated the plan; assessed treatment, disability, and impairment; and
analyzed records and reports. The first step in Aaron's investigation was to - correct
answer-Gather injury information and documents. This is the first of four steps in the
bodily injury investigation process.
Which one of the following best defines an advance payment? - correct answer-A partial
claim payment issued without obtaining a signed release.
An advance payment is a partial claim payment issued without obtaining a signed
release, usually for the purpose of helping the claimant to cover immediate expenses.
Juan is calculating a settlement in an auto liability claim and is determining a reasonable
estimate of the damages the claimant is likely to be able to prove. In estimating the
initial probable verdict range, Juan bases his calculations - correct answer-Solely on
provable damages without considering liability or other variables. The initial probable
verdict range is based solely on provable damages, without considering liability of other
variables, such as characteristics of the insured or claimant or venue of the case.
Fox Auto Dealership (Fox) is insured under the Auto Dealers Coverage Form (ADCF).
Section III - Acts, Errors, or Omissions Liability Coverage of the ADCF would provide
coverage for damages resulting from which one of the following? - correct answer-The
sale of an auto that was later discovered to have a defective title would be covered
under Section III - Acts, Errors, or Omissions Liability Coverage of the ADCF.
, Cassidy was involved in an intersectional collision with another vehicle. Kevin, the driver
of the other vehicle, has filed a suit against Cassidy for medical injuries and damages to
his car. He claims that Cassidy struck his vehicle after failing to stop at a stop sign.
Which one of the following parts of Cassidy's personal auto policy (PAP) would provide
her with coverage for this suit? - correct answer-Part A--Liability provides Cassidy with
coverage from suits for bodily injury and property damages arising out of her operation
of the vehicle.
In investigating an auto physical damage claim, Howard determines that the estimate
for repairs exceeds the vehicle's actual cash value less its salvage value. This results in
- correct answer-A constructive total loss occurs when the loss estimate equals or
exceeds the vehicle's actual cash value (ACV) less its salvage value.
Fernanda is a defense attorney for an insurer. She is working on a claim in which the
claimant was injured in an accident and is claiming to have depression and anxiety as a
result. Fernanda was able to uncover records of the claimant's treatment for depression
and anxiety several years before the accident. Fernanda's defense should be that -
correct answer-The condition existed before the injury. In order for a psychological
injury to be covered, it must be causally related to the physical injury.
Diminished value auto claims generally involve - correct answer-Autos that, although
properly repaired, may not be worth as much as comparable autos due to their accident
history.
In some situations of overlapping coverage, each insurer pays the proportion of the
claim that its limit bears. This is called - correct answer-In pro rata contribution, each
insurer pays the proportion of the claim that its limit bears to the total of all applicable
insurance.
Ciara is a claims rep investigating an automotive damage claim. In the course of her
investigation, she begins to suspect fraud. Which one of the following actions should
she take? - correct answer-Engage the special investigation unit (SIU)
If fraud is suspected, the claims rep should engage the special investigation unit (SIU).
In a partial auto physical damage loss, the damage can be repaired without - correct
answer-Exceeding the value of the auto.
In a partial auto physical damage loss, the damage can be repaired without exceeding
the value of the auto.
WITH 100% COMPLETE SOLUTIONS|
LATEST UPDATE
Laura was injured in an auto accident due to the fault of the other driver. Her injury will
involve permanent impairment and will decrease her opportunity to earn a living. She
has incurred medical expenses and will continue to experience pain and suffering.
Which one of Laura's damages is considered a natural and necessary result of her
bodily injury? - correct answer-Pain and suffering are considered a "natural and
necessary" result of a claimant's bodily injury. A claimant is entitled to recover for pain
and suffering from an injury caused by the tortfeasor.
Aaron is a claims representative who has completed an investigation of a bodily injury
claim. Throughout the process, he gathered injury information and documents;
monitored and updated the plan; assessed treatment, disability, and impairment; and
analyzed records and reports. The first step in Aaron's investigation was to - correct
answer-Gather injury information and documents. This is the first of four steps in the
bodily injury investigation process.
Which one of the following best defines an advance payment? - correct answer-A partial
claim payment issued without obtaining a signed release.
An advance payment is a partial claim payment issued without obtaining a signed
release, usually for the purpose of helping the claimant to cover immediate expenses.
Juan is calculating a settlement in an auto liability claim and is determining a reasonable
estimate of the damages the claimant is likely to be able to prove. In estimating the
initial probable verdict range, Juan bases his calculations - correct answer-Solely on
provable damages without considering liability or other variables. The initial probable
verdict range is based solely on provable damages, without considering liability of other
variables, such as characteristics of the insured or claimant or venue of the case.
Fox Auto Dealership (Fox) is insured under the Auto Dealers Coverage Form (ADCF).
Section III - Acts, Errors, or Omissions Liability Coverage of the ADCF would provide
coverage for damages resulting from which one of the following? - correct answer-The
sale of an auto that was later discovered to have a defective title would be covered
under Section III - Acts, Errors, or Omissions Liability Coverage of the ADCF.
, Cassidy was involved in an intersectional collision with another vehicle. Kevin, the driver
of the other vehicle, has filed a suit against Cassidy for medical injuries and damages to
his car. He claims that Cassidy struck his vehicle after failing to stop at a stop sign.
Which one of the following parts of Cassidy's personal auto policy (PAP) would provide
her with coverage for this suit? - correct answer-Part A--Liability provides Cassidy with
coverage from suits for bodily injury and property damages arising out of her operation
of the vehicle.
In investigating an auto physical damage claim, Howard determines that the estimate
for repairs exceeds the vehicle's actual cash value less its salvage value. This results in
- correct answer-A constructive total loss occurs when the loss estimate equals or
exceeds the vehicle's actual cash value (ACV) less its salvage value.
Fernanda is a defense attorney for an insurer. She is working on a claim in which the
claimant was injured in an accident and is claiming to have depression and anxiety as a
result. Fernanda was able to uncover records of the claimant's treatment for depression
and anxiety several years before the accident. Fernanda's defense should be that -
correct answer-The condition existed before the injury. In order for a psychological
injury to be covered, it must be causally related to the physical injury.
Diminished value auto claims generally involve - correct answer-Autos that, although
properly repaired, may not be worth as much as comparable autos due to their accident
history.
In some situations of overlapping coverage, each insurer pays the proportion of the
claim that its limit bears. This is called - correct answer-In pro rata contribution, each
insurer pays the proportion of the claim that its limit bears to the total of all applicable
insurance.
Ciara is a claims rep investigating an automotive damage claim. In the course of her
investigation, she begins to suspect fraud. Which one of the following actions should
she take? - correct answer-Engage the special investigation unit (SIU)
If fraud is suspected, the claims rep should engage the special investigation unit (SIU).
In a partial auto physical damage loss, the damage can be repaired without - correct
answer-Exceeding the value of the auto.
In a partial auto physical damage loss, the damage can be repaired without exceeding
the value of the auto.
