AIC 300 QUESTIONS ANSWERED CORRECTLY & GRADED A+
Telematics are used to collect data on personal autos, commercial vehicles, products, shipments, machinery, smart devices, and workers. - Answer-Larissa is an auto claim adjuster. Traditionally, she has relied on police reports and witness testimon...
AIC 300 QUESTIONS ANSWERED
CORRECTLY & GRADED A+
Telematics are used to collect data on personal autos, commercial vehicles, products,
shipments, machinery, smart devices, and workers. - Answer-Larissa is an auto claim
adjuster. Traditionally, she has relied on police reports and witness testimony in her
decision making. Recent technological developments give her access to the driver's
driving habits, including acceleration, speed, and braking. This data available to Larissa
is known as
Select one:
A. Artificial Intelligence.
B. Telematics.
C. Wearables.
D. Internet of Things.
A. Blockchain.
By having a transparent ledger associated with a car, for example, insurers can detect
fraud that would be difficult to detect otherwise. - Answer-Martin is in SIU and helps his
employer, a multi-line insurer, to detect fraudulent claims. He is using a technology that
enables insurers to share fraud-related information. This distributed digital ledger that
facilitates secure transactions without using a third party is known as
Select one:
A. Blockchain.
B. A predictive model.
C. The Internet of Things.
D. Telematics.
D. He still needs people because the data need to be analyzed in context by a human. -
Answer-Jack leads the claims department for a large insurer and has embraced the
recent developments in claims data collection and analysis. Jack knows that
Select one:
A. People make little difference in analyzing data and explaining it to a customer.
B. Claims determinations and payments will soon be accomplished entirely by AI.
C. He will eventually not need people because insurance is not a customer-driven
industry.
D. He still needs people because the data need to be analyzed in context by a human.
C. Costs roughly $40 billion per year, excluding health insurance. - Answer-As a claims
representative, Beatrice is on the front lines for protecting her employer from insurance
fraud. Beatrice should understand that insurance fraud
Select one:
A. Is the costliest white-collar crime in the U.S.
,B. Accounts for 25 percent of the P&C industry incurred losses.
C. Costs roughly $40 billion per year, excluding health insurance.
D. Costs each American family between $2,000 and $4,000 per year.
C. Comparative negligence.
In states that permit negligence as a basis for a bad-faith claim, most use a comparative
negligence approach, reducing the amount of damages that may be awarded. - Answer-
Ella sued her insurer and alleged bad-faith claim handling after the insurer settled a
claim against her that Ella thought should have been denied. As a result of the
settlement, Ella's premium increased. In her suit, Ella claimed that the insurer rushed
the investigation and did not take all of her facts into consideration in her defense. While
the court found that Ella's argument had merit, it did not award her the full value
because it found that Ella had not provided her information to the insurer in a timely
manner. The insurer used the defense of
Select one:
A. Contributory negligence.
B. Debatable reasonable basis.
C. Comparative negligence.
D. Comparative bad faith.
C. Debatable reasonable basis defense.
The insurer may establish that defense that it had a reasonable basis for questioning
whether a claim was covered. - Answer-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
Select one:
A. Lack of standing defense.
B. Advice of counsel defense.
C. Debatable reasonable basis defense.
D. Statute of limitations defense.
C. Maintains regular and prompt communication.
Communicating with all parties to a claim is a crucial aspect of good-faith claims
handling and resolution. - Answer-One of Julio's expectations as a claims representative
is good-faith claims handling. He keeps insureds informed about the claim because they
have that expectation and because they are most likely to make a complaint about bad-
faith claim handling. He also wishes to participate in the defense and in discussions
about the possibility of settlement. For these reasons, Julio
Select one:
A. Conducts fair evaluations.
, B. Maintains complete and accurate documentation.
C. Maintains regular and prompt communication.
D. Conducts good-faith negotiation.
D. Some states allow insureds and claimants to bring lawsuits against insurers, while
others allow only insureds. - Answer-Which one of the following statements regarding
state versions of the NAIC model act is correct?
Select one:
A. Only insureds may bring lawsuits against insurers.
B. Only claimants may bring lawsuits against insurers.
C. Both insureds and claimants may bring lawsuits against insurers.
D. Some states allow insureds and claimants to bring lawsuits against insurers, while
others allow only insureds.
C. Timely contact with all parties to a claim
Timely contact with all parties to a claim helps ensure that parties will be more likely to
remember details of the loss accurately. - Answer-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?
Select one:
A. Fair evaluation
B. Complete and accurate documentation
C. Timely contact with all parties to a claim
D. Good-faith negotiation
B. The amount of the judgment must be in excess of the insured's policy limit.
For an excess liability claim to be filed, a final judgment or settlement must have been
entered against the insured, and the amount of the judgment must be in excess of the
insured's policy limit. The insured is not required to have paid the judgment before
bringing suit. - Answer-For an excess liability claim to be filed, a final judgment or
settlement must have been entered against the insured, and
Select one:
A. The insured must have paid that judgment.
B. The amount of the judgment must be in excess of the insured's policy limit.
C. Evidence of bad faith must be produced.
D. The insurer must have determined that coverage does not apply.
A. The behaviors necessary to implement an ethical decision - Answer-Which one of the
following best describes the term 'professionalism' as it relates to claims professionals?
Select one:
A. The behaviors necessary to implement an ethical decision
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