AIC 300 SIMULATED EXAM WITH CORRECT ANSWERS

AIC 300 SIMULATED EXAM WITH CORRECT ANSWERS Insurers and claim representatives must keep the promises specified in insurance policies, as well as those created by the law. In insurance transactions, the insured pays a premium for the insurer's promise to - CORRECT ANSWER-Handle claims in good faith. Maja handled a large liability claim that settled above the policy limits. The insured is now charging the claim was handled in bad faith. During their investigation of the bad-faith claim, Maja and defense counsel discovered that the claimant had received the payment from the insurer, but not the amount above the policy limits that was to come from the insured's assets. Which one of the following defenses would Maja's defense most likely invoke? - CORRECT ANSWER-Insured's collusion with the claimant. Bettina's apartment is burglarized and several items are stolen. In filing her claim, she tells her insurer that her stolen television was both newer and larger than it actually was. This constitutes which one of the following types of fraud? - CORRECT ANSWER-Soft Fraud. In liability claims, the claims rep will require an authorization from the injured party to - CORRECT ANSWER-Obtain medical records. Antonia has a general liability policy with a self-insured retention of $50,000. The policy has an occurrence limit of $250,000 and an aggregate limit of $500,000. She had submitted one prior claim this policy term for which $100,000 was paid by the insurer. How much will Antonia's insurer pay on a subsequent claim under the same policy period that is valued at $400,000? - CORRECT ANSWER-$250,000 Claims rep Miguel is conducting a settlement with a claimant. He constructs his first offer so that the claimant will likely find it undesirable. This becomes the basis of comparison for the second offer that he makes. Miguel understands that people - CORRECT ANSWER-Feel empowered when given a choice. Joy Insurance Company is interested in using data mining to solve a problem it is having with claims fraud in one of its product lines. The first step it should take is - CORRECT ANSWER-To understand what it wants to achieve. Thomas is an attorney who is defending an insurer in a litigated case. He has located documents that show the insured was aware of the issue that cause the injury to the claimant before the accident. Thomas is concerned that this evidence will hurt his case. He should - CORRECT ANSWER-Preserve the evidence as part of the record. As a part of the first contact with an insured on a property damage claim, a claims representative may provide a blank - CORRECT ANSWER-Proof of loss form. Ciara is going to college with the goal of working as a data scientist for an insurer. She will need a strong foundation in mathematics and statistics, computer programming, domain knowledge, and data science. Which one of Ciara's skills will require her to understand the insurance profession to which the data is being applied? - CORRECT ANSWER-Domain knowledge. Rodrigo manages a claims department for an insurer and uses loss ratio as a measure of the department's performance. Rodrigo calculates loss ratio as - CORRECT ANSWER-Losses and LAE divided by earned premium. An insurer that finds it economically impractical to establish a claims office in a given state is likely to use which one of the following to perform the claims handling function? - CORRECT ANSWER-Independent Adjusters Tonya is a claims representative tasked with determining whether coverage applies to a new claim. To ensure that she considers all facets of the claim, she uses the DICE method, which stands for declarations, insuring agreement, conditions and - CORRECT ANSWER-Exclusions. Which one of the following is correct with respect to the elements of good-faith claim management? - CORRECT ANSWER-Consistent supervision, thorough training, and manageable caseloads help ensure that claim representatives are able to handle claims in good faith. Which one of the following elements of a policy can include coverage that is otherwise excluded, exclude coverage that is otherwise included, or add or delete insureds? - CORRECT ANSWER-An endorsement. As a claims representative, Joshua frequently requests proofs of loss and affidavits, and conducts examinations under oath and recorded statements. Which one of Joshua's sworn statements is administered by the insurer's attorney at the office of the insurer, attorney, or court reporter? - CORRECT ANSWER-Examination under oath. The allegations contained in a summons and complaint typically serve four purposes: To give notice, reveal facts,