AIC 31 Questions and Answers well Explained Latest 2024/2025 Update 100% Correct.
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Module
AIC 31
Institution
AIC 31
Which one of the following describes a windstorm under an insurance policy? -️️A wind of any
velocity having sufficient force to cause damage
Which one of the following statements is true regarding the peril of collapse? - ️️Insurers agree to
pay for collapse of the insured building caus...
AIC 31
Which one of the following describes a windstorm under an insurance policy? - ✔️✔️A wind of any
velocity having sufficient force to cause damage
Which one of the following statements is true regarding the peril of collapse? - ✔️✔️Insurers agree to
pay for collapse of the insured building caused by perils listed in the form.
Paco Campos accidentally tosses a cigarette in a trash can in his old detached garage. The garage catches
on fire, but Paco, knowing his insurance policy will provide coverage, waits until the garage is severely
damaged before he begins to attempt to put out the fire or call the fire department. This is an example
of - ✔️✔️A morale hazard.
A mortgagee's rights under a property insurance policy can best be described as - ✔️✔️Independent of
the named insured's rights and duties.
A specific exclusion common to most property policies is - Ordinance or law.
Which one of the following statements is true regarding coinsurance? - ✔️✔️The adequacy of the
amount of insurance purchased is measured against the value of the property insured.
The earliest types of insurance coverage addressed only the building structures exposure and the peril of
- ✔️✔️Fire.
When the insured has a specified-perils policy, the - ✔️✔️Insured is obligated to determine which peril
applies to the damage to his or her property.
Lisa is covered under a specified-perils policy. She has called her insurance producer to report the theft
of her wedding ring from her home. The burden of proof in this situation is on - ✔️✔️Lisa.
Which one of the following is true regarding "additional coverage" - ✔️✔️Some additional coverages
are created to reinstate coverage that has otherwise been eliminated by exclusions.
,Which one of the following is an important consideration in determining whether an object is personal
property or a fixture? - ✔️✔️The owner's intent
Concurrent causation becomes an issue when - ✔️✔️One of the perils is a covered peril and the other is
not.
Concurrent causation is - ✔️✔️A single loss caused by two or more perils, acting either simultaneously
or in succession.
Henry's home was badly damaged from weight of ice and snow on the roof and eaves. The property
insurance coverage that would cover his loss is - ✔️✔️Broad-form coverage.
In a specified perils policy, a loss is covered only if - ✔️✔️The cause of loss is listed.
Sharon and Robin joined in a business venture where they both share in business profits and losses. Also
involved in this venture is Larry, who has invested $50,000, which is the extent of his liability in the
business. Larry is a - ✔️✔️Limited partner.
Freelance writer John owns a barn containing wheelbarrows, ladders, roofing shingles, a lawn mower,
clothes, some copyrights, two vehicles, and some miscellaneous personal property. Which one of the
following property items would be considered John's real property? - ✔️✔️Roofing shingles
In determining coverage for a loss under a special-form policy, the adjuster must determine -
✔️✔️Whether any exclusions apply.
Lifelong friends Sam and Peter combine their funds and purchase a summer home on a lake. As co-
owners, each of them has a 50 percent interest in the property. Sam and Peter - ✔️✔️Are tenants in
common.
Which one of the following forms added seven additional perils to the Basic Form endorsement? -
✔️✔️The Extended Coverage endorsement
, Concurrent causation is defined as - ✔️✔️A single loss that was caused by two or more perils, occurring
simultaneously or in succession.
Collapse as an additional coverage under the HO-3 is an example of - ✔️✔️A reinstatement of coverage
previously excluded.
Which one of the following statements is true regarding a specified-perils coverage loss? - ✔️✔️An
adjuster must verify an identified peril caused the loss before paying the loss.
The past month has caused many fire-related problems in Sarah's household. Which one of the following
incidents would be considered a hostile fire by Sarah's insurance producer? - ✔️✔️Sarah burned trash
in her yard, and the fire spread and burned down Sarah's garage.
Alvin Ross has been informed by his insurance agent that his policy protects against risk of direct physical
loss to property. Over time, the walls began to crack and pipes began to break causing extensive damage.
Alvin was told that these problems are due to faulty design. Which one of the following statements is
true? - ✔️✔️Alvin's insurer has the burden of proof, and if the insurer cannot prove that an exclusion
applies based on what caused the loss, then coverage would apply.
Lila Jones has a $250,000 home mortgage which includes $200,000 for her loan balance and $50,000
equity in her home. How much insurance is Lila entitled to purchase on her home? - ✔️✔️$250,000,
because that is Lila's total insurable interest in her home
Which one of the following describes the mortgage clause? - ✔️✔️The mortgagee is notified of
cancellation or non-renewal at least 10 days before cancellation or non-renewal takes effect.
Which one of the following statements is true about the mortgage clause? - ✔️✔️The mortgagee can
collect even if the insured intentionally burned down the house assuming other policy conditions are
met.
Which one of the following exclusions is common to property policies? - ✔️✔️Governmental action
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