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AIC 300 Questions and Answers well Explained Latest 2024/2025 Update 100% Correct.
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  • AIC 300
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  • AIC 300

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 A. Handle claims in good faith. B. Comply with federal insurance laws. C. Compete f...

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  • September 1, 2024
  • 16
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

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  • aic 300

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  • AIC 300
  • AIC 300

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AIC 300 questions
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

A. Handle claims in good faith.

B. Comply with federal insurance laws.

C. Compete fairly in the insurance market.

D. Settle all losses in the insured's best interests. - A. Handle claims in good faith.

In insurance transactions, the insured pays a premium for the insurer's promise to handle claims in good
faith.




urer after notice is issued to appear at the office of the insurer, attorney, or court reporter.



Which one of the following can be applied over time to refine a model to better predict results?

A. Regression

B. Association rule learning

C. Machine learning

D. Statistics - C. Machine learning

Machine learning can be applied over time to refine a model to better predict results.



Conor is a claims representative whose supervisor is reviewing his claim status notes. The supervisor
took exception with one of Conor's notes, which read, "The claimant is obviously lying because his
account of how the accident happened keeps changing." The supervisor should advise Conor that this
statement is inappropriate because it is not:

A. Objective

B. Concise

C. Accurate

D. Clear - A. Objective

,Claim status notes should contain objective comments about the parties, and this statement is
subjective.



Leila is conducting a claims investigation and is taking a recorded statement from the claimant. She
wants a simple yes-or-no answer to prevent the interviewee from explaining the answer further. She
asks, "You experienced back pain immediately when you lifted the box, didn't you?" Leila has asked a(n)

A. Direct Question

B. Leading Question

C. Open-Ended Question

D. Indirect Question - B. Leading Question



The NAIC model act specifies that its provisions regarding bad-faith claims are to be enforced by

A. NAIC personnel.

B. Insurer personnel, on the honor system.

C. State insurance departments.

D. The Federal Trade Commission. - C. State insurance departments.

The NAIC model act specifies that its provisions regarding bad-faith claims are to be enforced by state
insurance departments.



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

A. She was immune to prosecution as an employee.

B. The limits of the policy had been exceeded.

C. There was no basis to pierce the corporate veil.

D. Too much time had expired after the claim concluded. - D. 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.



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

, A. Preserve the evidence as part of the record.

B. File a motion in limine to exclude the evidence.

C. File a motion to suppress the evidence.

D. Destroy the evidence to make the defense stronger. - 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.



Among the methods used to pay claims are the issuance of checks and bank drafts. The main difference
between the two is that

A. Only bank drafts may be used for claim payments in excess of $10,000.

B. With a bank draft, the bank must verify that the insurer has authorized payment.

C. With a check, the bank must verify that the insurer has authorized payment.

D. Only checks may be used for claim payments in excess of $10,000. - B. With a bank draft, the
bank must verify that the insurer has authorized payment.

With a bank draft, the bank must verify that the insurer has authorized payment before disbursing funds.



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

A. Has an insurable interest in the damaged property.

B. Has business interruption coverage.

C. Is the owner of the building.

D. Is named in the policy declarations or an endorsement. - D. 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.



Sho is a claims representative. With regard to his responsibility for defending his employer against fraud,
Sho understands that

A. Paying fraudulent claims affects insureds.

B. Fraud indicators are proof of fraud.

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