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AIC 300 2024/2025 With 100% Correct answers latest update
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AIC 300 2024/2025 With 100% Correct answers latest update
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AIC 300Indemnify Answer: To restore a party who has sustained a loss to the
same financial position that party held before the loss occurred.
Third-party administrator (TPA) Answer: An organization that
provides administrative services associated with risk financing and
insurance.
Claims representative Answer: A person responsible for investigating,
evaluating, and settling claims.
Public adjuster Answer: An outside organization or person hired by
an insured to represent the insured in a claim in exchange for a fee.
Premium audit Answer: Methodical examination of a policyholder's
operations, records, and books of account to determine the actual
exposure units and premium for insurance coverages already provided.
Quantitative Audit Factors Answer: Timeliness of reports, reserving
and payments
Qualitative Audit Factors Answer: Realistic reserving, accurate
evaluation of insured's liability and follow-up on subrogation opportunity
,Loss ratio Answer: A ratio that measures losses and loss adjustment
expenses against earned premiums and that reflects the percentage of
premiums being consumed by losses.
Loss adjustment expense (LAE) Answer: The expense that an insurer
incurs to investigate, defend, and settle claims according to the terms
specified in the insurance policy.
Aaron works for a multi-line insurer. He works with insurance producers
and applicants to evaluate new business submissions and conduct
renewal underwriting. Aaron is a
A. Personal lines underwriter.
B. Line underwriter.
C. Staff underwriter.
D. Public underwriter. Answer: B. Line underwriter.
This describes the duties of a line underwriter, rather than a staff
underwriter. There is not enough information to determine which line of
business is being written. A public underwriter does not exist. Line
underwriters evaluate new submissions and perform renewal
underwriting, usually by working directly with insurance producers and
applicants. Staff underwriters, meanwhile, manage risk selection by
,working with line underwriters and coordinating decisions about
products, pricing and guidelines.
Hugo is conducting an audit of a branch office claims operation. He is
evaluating timeliness of reports, number of files opened, proper releases
taken, and accuracy of data entry. Which one of Hugo's metrics is a
qualitative audit factor?
A. Number of files opened
B. Timeliness of reports
C. Accuracy of data entry
D. Proper releases taken Answer: D. Proper releases taken
Which one of the following statements regarding third-party
administrators (TPAs) is most accurate?
A. TPAs handle claims, keep claims records, and perform statistical
analyses.
B. TPAs are generally found in an insurer's claims department.
C. TPAs are typically used by businesses that have chosen not to self-
insure.
D. TPAs are employed only by independent adjusting firms. Answer:
A. TPAs handle claims, keep claims records, and perform statistical
analyses.
, Steps of Making an Initial Claims Assessment Answer: Acknowledging
and Assigning the Claim
Identifying the Policy
Contacting the Insured or the Insured's Representative
How do recorded statements and examinations under oath differ?
Answer: An examination under oath is more formal than a recorded
statement. Recorded statements are often taken by claims
representatives, typically by telephone. Examinations under oath are
usually performed by an attorney for the insurer at the insurer's office or
a court reporter's office.
Effective statements exhibit these qualities: Answer: Coherence—
The statement follows a logical sequence.
Completeness—The statement is thorough.
Objectivity—The statement contains facts relevant to the loss expressed
in the interviewee's own words.
Seven-Part Method Answer: 1. Permission and introduction—date,
time, and location of the interview, names of the parties involved in the
interview, and an affirmation from the interviewee that the interview is
given with permission
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