AIC 304 STUDY Latest Update 2025-2026 Exam 170 Questions with 100% Verified Correct Answers Guaranteed A+
A claims rep is most likely to use the book value method to determine cost of goods sold for a loss involving - CORRECT ANSWER: A. Merchandise stored at multiple locations.
- Antiques or other hard-to-value items.
- Suspected arson.
- Out-of-sight merchandise.
D
A contractors equipment policy insuring oil or natural gas well-drilling rigs would require coverage for which one of the following perils in addition to the specified perils coverage
typically provided? - CORRECT ANSWER: A. Explosion
- Squeeze
- Cratering
- Cave-in
C
A widely used financial institution bond is - CORRECT ANSWER: A. The Insurance
Services Office Financial Institution Crime Policy for Banks and Saving Institutions.
- The fidelity bond.
- The commercial general liability fiduciary bond.
- Standard Form No. 24.
D 1 / 4
Adam is a professional who is involved in a claim for fire damage. To ensure he uses proper methodology, he is considering the following factors: Was the scene adequately investigated and documented with diagrams and photos? Was the point of origin definitively established? Has the source of ignition been identified? What events led to the fire starting? Was all of the available evidence securely collected? Were all of the
witnesses interviewed in a comprehensive fashion? Adam is a - CORRECT ANSWER:
- Fire fighter.
- Police officer.
- Fire investigator.
- Claims representative.
C
Adam is adjusting a claim for fire damage to insured property and has gathered the following facts: multiple fires were involved; the building typically contained flammable materials; the insured's full warehouse of inventory was damaged; and the fire protection system sounded normally. Which one of Adam's findings could lead him to
believe the fire was incendiary? - CORRECT ANSWER: A. Flammable materials
- Fire protection system
- Damaged inventory
- Multiple fires
D
After a potentially responsible third party is identified, a claims rep should investigate the potential opportunity for subrogation - CORRECT ANSWER: A. At the same time as the loss investigation.
- Upon presenting a settlement amount to the insured.
- After the loss is settled.
- After the loss investigation is complete 2 / 4
A
Alex is a claims adjuster handling a claim for theft of covered property. Alex's first step
should be to - CORRECT ANSWER: A. 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.
B
Alterations or additions made to the building at the expense of an insured who does not own the building and who cannot legally remove them are referred to as - CORRECT
ANSWER: A. Improvements and betterments.
- Leaseholder enhancements.
- Personal property of others.
- Building fixtures and fittings.
A
Alva is adjusting a homeowner's claim for fire damage. The policyholder had a collection of rare antiques that were damaged in the fire. Alva is unfamiliar with the damaged items, so to help her determine the amount of the loss she employs a(n) - CORRECT
ANSWER: A. Origin and cause expert.
- Fire investigator.
- Public adjuster.
- Antiques appraiser.
- / 4
D
Annual transit policies and trip transit policies typically use which one of the following
methods to value shipments between a seller and a buyer? - CORRECT ANSWER: A.
Invoice price
- Original cost
- Selling price
- Market value
A
Aside from fraud, the two most common policy violations leading to coverage disputes are an insured's failure to cooperate with the insurer's investigation and an insured's
failure to - CORRECT ANSWER: A. Provide prompt notice of a loss.
- Understand policy exclusions.
- Remain up to date on premium payments.
- Mitigate damages from the loss.
A
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) - CORRECT ANSWER: A. Wholesaler.
- Salvor.
- Public adjuster.
- Junk dealer.
B
- / 4