AIC 304 STUDY EXAM TEST

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AIC 304 STUDY EXAM TEST |

COMPLETE AIC 304 ACTUAL

EXAM WITH CORRECT VE RIFIED

ANSWERS | ALREADY GR ADED A+

| BRAND NEW

Question 1: The insurance-to-value provision often found

in homeowners policies applies only to

• Property insured under Coverage A--Dwelling.
• Personal property.
• Property insured under Coverage A--Dwelling and

Coverage B--Other Structures.

• Property insured under Coverage B--Other Structures

CORRECT ANSWER: C

Question 2: Benjamin is a claims representative handling

a merchandise loss. He needs someone to prepare an inventory of the damaged goods, verify their value, preserve damaged items, locate the best market for salvageable items, and oversee the sale. Benjamin should hire a(n)

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• Wholesaler.
• Salvor.
• Public adjuster.
• Junk dealer.

CORRECT ANSWER : B

Question 3: Philip is a claims representative for Goshen

Insurance. He is working on a motor truck cargo (MTC) liability claim and is trying to determine if the entity facing legal liability for the cargo loss is an insured under the MTC policy. In addition to the blanket MTC policy, Philip will need to review which one of the following?

• The schedule of vehicles
• The insured's trip transit policy
• The schedule of terminals
• The carrier section of the bill of lading

CORRECT ANSWER : D

Question 4: Brenda and Tyrone are homeowners with a

monthly mortgage of $1,200. Their home sustains

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damage from a fire, and restoration is expected to take several months to complete. They rent an apartment with a monthly rent of $1,500 to occupy during restoration.Which one of the following statements regarding their additional living expenses under Coverage D in ISO homeowners policy forms is most accurate?

• They would be covered for $2,700, the total of both

their mortgage and the rent on their temporary apartment.

• They would be covered for $1,500 a month, the full

rent on their temporary apartment.

• They would be covered for $300 a month, the

difference between their mortgage and temporary monthly rent.

• There would be no coverage, as additional living

expenses are provided only if the temporary housing expense is equal to or less than that of the damaged property.

CORRECT ANSWER : B

Question 5: Katarina is a claims representative who is

discussing a property loss incident with the insured. She has asked him if a violent expansion of air occurred, if a

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loud noise was reported, and if a sudden and violent outbreak of physical forces occurred. Katarina is trying to determine

• Whether a fire occurred.
• Grounds for denying the claim.
• Whether an explosion occurred.
• Grounds for accepting the claim.

CORRECT ANSWER : C

Question 6: Alex is a claims adjuster handling a claim for

theft of covered property. Alex's first step should be to

• Confirm who owns the property that has been reported

stolen.

• Determine if theft is a covered loss and identify policy

limitations.

• Determine who has an insurable interest in the

property.

• Obtain a police report of the incident.

CORRECT ANSWER : B