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AIC 300 CLAIMS IN AN EVOLVING WORLD EXAM practice and guide exam
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AIC 300 CLAIMS IN AN EVOLVING WORLD EXAM practice and guide exam
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AIC 300 CLAIMS IN AN EVOLVING WORLD EXAM practice and guide exam2024
Early contact with parties helps to ensure details are correct, parties feel heard, and don't feel the need
for attorneys. - ANSWER>>As a claims representative, some of Sara's goals is to benefit her employer by
ensuring the parties to a loss remember details accurately, reassuring the parties that their claims are
important, and lessening the chance that the parties will retain attorneys. Sara accomplishes these goals
through
Select one:
A. Effective claims management.
B. Regular and prompt communication.
C. Complete and accurate documentation.
D. Timely contact with all parties to a claim.-answr - D. Timely contact with all parties to a claim.
Erik would most likely use drones to take photos or videos of the difficult-to-reach area and assess the
damage and danger. By using the drones, he can assess the danger without risking the safety of the claims
representatives. - ANSWER>>Erik is a claims manager for Taunton Insurance. He is leading a team of
property claims representatives responding to a recent tornado in Kentucky. Before sending the
representatives into the field, Erik has decided to use Internet of Things (IoT) technology to assess the
damage and danger in the area. Which one of the following IoT devices would Erik most likely use in this
situation?
Select one:
A. Drones
B. Sensors
C. Smartphones
D. Telematics-answer- A. Drones
B. Is named in the policy declarations or an endorsement.
,An individual may have an insurable interest in a building, but not be considered an insured under the
policy because the person's name is not listed in the declarations or on an endorsement. -
ANSWER>>Luke runs his business out of a store front in a commercial building. After a fire destroyed part
of the building, Luke made a claim for damages and received a settlement check from the property
insurer. This necessarily means that Luke
Select one:
A. Has business interruption coverage.
B. Is named in the policy declarations or an endorsement.
C. Has an insurable interest in the damaged property.
D. Is the owner of the building.
B. Losses and LAE divided by earned premium.
Losses and LAE divided by earned premium. Loss ratio measures losses and loss adjustment expenses
against earned premium and reflects the percentage of premiums being consumed by losses. -
ANSWER>>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
Select one:
A. Losses divided by written premium.
B. Losses and LAE divided by earned premium.
C. Losses and LAE divided by written premium.
D. Losses divided by earned premium.
B. Obtain medical records.
In liability claims, the claims rep will require an authorization from the injured party to obtain medical
records. - ANSWER>>In liability claims, the claims rep will require an authorization from the injured party
to
Select one:
A. Investigate the claim.
B. Obtain medical records.
C. Contact the insured.
,D. Issue a partial claim settlement.
A. Actuary.
Actuaries are critically important to this process because they understand the business and the analytics. -
ANSWER>>Mustafa is a data scientist who is working with a team of underwriting, IT, and actuary to
develop a predictive analytics model. The main goal of the project is to translate the insights gained from
the model they develop into business action. In Mustafa's experience, the team member that can provide
the bridge between the analytics and the business is Select one: A. Actuary.
B. IT.
C. Underwriting.
D. Data science.
B. Proof of loss form.
A claims representative may provide a blank proof of loss form and any necessary written instructions so
the insured can document the claim. - ANSWER>>As a part of the first contact with an insured on a
property damage claim, a claims representative may provide a blank
Select one:
A. Reservation of rights form.
B. Proof of loss form.
C. First notice of loss form.
D. Nondisclosure form.
A. Too much time had expired after the claim concluded.
Too much time had expired after the claim concluded. A statute of limitations is a law that stipulates the
length of time after an event during which legal proceedings may be initiated. - ANSWER>>Ida was named
in a bad-faith lawsuit as the claims representative who handled the file. The court dismissed the suit,
however, because the statute of limitations had expired. This means that
Select one:
A. Too much time had expired after the claim concluded.
, B. The limits of the policy had been exceeded.
C. There was no basis to pierce the corporate veil.
D. She was immune to prosecution as an employee.
A. Stairstepping. - ANSWER>>DaJuan, a claims representative, sets a low case reserve for a seemingly
simple claim. A few weeks later it becomes apparent that the initial reserve was too low, and he increases
it in order to issue payments. More bills related to the claim arrive a few months later, and he increases
the reserve again. This process is known as
Select one:
A. Stairstepping.
B. Reopening.
C. Readjusting.
D. Incremental reserving.
C. Premium auditor.
Premium auditors provide inventory values, contractors' equipment lists, and other facts that are
important to the claims function. - ANSWER>>Erin helps her employer, a multi-line insurer, to determine
actual exposure and premium for coverage. She does this by conducting detailed examinations of
policyholder operations, records, and accounting. Erin is a(n)
Select one:
A. Producer.
B. Claims adjuster.
C. Premium auditor.
D. Underwriter.
A. Preserve the evidence as part of the record.
An insurer defending a first-party coverage lawsuit could be found liable if evidence is intentionally or
negligently lost or destroyed. - ANSWER>>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
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