AIC 300 CLAIMS IN AN EVOLVING WORLD EXAM QUESTIONS WITH CORRECT ANSWERS
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AIC 300 CLAIMS IN AN EVOLVING WORLD
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AIC 300 CLAIMS IN AN EVOLVING WORLD
AIC 300 CLAIMS IN AN EVOLVING WORLD EXAM QUESTIONS WITH CORRECT ANSWERS
Which one of the following best describes the term 'professionalism' as it relates to claims professionals?
a. Fulfilling the terms of an insurance contract
b. The behaviors necessary to implement an ethical decision c. R...
AIC 300 CLAIMS IN AN EVOLVING
WORLD EXAM QUESTIONS WITH
CORRECT ANSWERS
Which one of the following best describes the term 'professionalism' as it relates to
claims professionals?
a. Fulfilling the terms of an insurance contract
b. The behaviors necessary to implement an ethical decision
c. Remaining silent when a competitor is disparaged publicly
d. A set of principles and values - Answer-b. The behaviors necessary to implement an
ethical decision
Part of the continuous cycle of data mining is preparing the data to eliminate missing or
inaccurate information. This process is called
a. Parsing.
b. Machine learning.
c. Cleaning.
d. Predictive modeling. - Answer-c. Cleaning
The Office of Foreign Assets Control requires claims payors to check payees against a
database of
a. Policyholders of other insurers.
b. Those who have collected a payment for the same loss.
c. Known terrorists and drug traffickers.
d. Known perpetrators of insurance fraud. - Answer-c. Known terrorists and drug
traffickers
Which one of the following is a data mining technique an insurer applies when it knows
what information it wants to predict?
a. Association rule learning
b. Classification
c. Machine learning
d. Cluster analysis - Answer-b. Classification
Claims may be paid in any of three ways: by check, by bank transfer or
a. By the issuance of a credit on the premium for the next policy period.
b. By electronic funds transfer.
c. In a direct transfer of goods or services, as with a contractor performing repairs.
d. In cash. - Answer-b. By electronic funds transfer
, Charlotte is handling a new claim and she has set the initial reserves at $1,000,000.
She has been asked to complete an internal report summarizing all the file status
information for distribution to management and updated as more information is
received. The report Charlotte is completing is most likely a
a. Preliminary report.
b. Summarized report.
c. Status report.
d. Large loss report. - Answer-d. Large loss report
Tobias is a claims representative who understands the importance of good-faith claims
handling, including fair evaluation, good-faith negotiation, complete and accurate
documentation, and timely contact with all parties to a claim. Which one of Tobias'
good-faith claims handling practices helps his employer because the parties will be
more likely to remember details of the loss accurately?
a. A Good-faith negotiation
b. Timely contract with all parties to a claim
c. Fair evaluation
d. Complete and accurate documentation - Answer-b. Timely contact with all parties to a
claim
Not long after Valteri issued a denial and closed the claim, the insured sued for
coverage and alleged bad-faith claim handling against the insurer. Valteri was able to
demonstrate for his superiors that he had made a good-faith investigation and
determined that the claim was not covered by the policy. The insurer maintains that
Valteri had reasonable justification in fact for denying the claim. The insurer is
employing the
a. Debatable reasonable basis defense.
b. Statute of limitations defense.
c. Advice of counsel defense.
d. Lack of standing defense. - Answer-a. Debatable reasonable basis defense
To determine whether an insurer typically underreserves or overreserves claims,
actuaries compare the insurer's paid losses to
a. The insurer's profits.
b. NAIC model regulations.
c. National averages.
d. The insurer's case reserves. - Answer-d. The insurer's case reserve
The first key to communicating empathetically as a claims professional is
a. A comprehensive understanding of relevant insurance policies.
b. Listening.
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