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AIC 302 FINAL EXAM NEWEST 2025 TEST BANK|
COMPLETE 400 ACTUAL EXAM QUESTIONS
AND CORRECT DETAILED ANSWERS
(VERIFIED ANSWERS) |ALREADY GRADED A+|
AIC 301 EXAM PREP |BRAND NEW!!
Chelsea is injured in an accident caused by an uninsured motorist and signs a UM release. Which one of the following is correct? - ANSWER - She must cooperate with her insurer in pursuing subrogation.A UM release requires the insured to cooperate with the insurer in pursuing subrogation.
Larry owns two trucks and works as an owner-operator. Larry was hired by Carrier A to transport a trailer of goods from Texas to Maine. Rather than bobtailing back to Texas, Larry entered into a trip lease to haul a return load of cargo for Carrier Z. Which one of the following will provide liability coverage for Larry's backhaul trip? - ANSWER - Carrier Z's MCCF would provide the liability coverage for Larry's backhaul trip.
Carla is evaluating a bodily injury claim for a claimant who was injured in an auto accident. She is considering the claimant's occupation and wages, age, expected work life, life expectancy, education and training, and previous job history. Carla is evaluating the claimant's damages for - ANSWER - Diminished earning capacity. This occurs when permanent injuries or disabilities prevent claimants from working in the same capacity as they did before the loss occurred.
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pg. 2 Jose was injured in an auto accident caused by the other driver. Jose's injuries were covered by his medical insurance. At trial, the court did not allow the insurer to reduce Jose's award by the amount his medical insurance paid. Its decision was based on the - ANSWER - Collateral source rule. This bars the introduction of evidence that a claimant has other sources of recover.
Pete's car is stopped at a red light behind Cindy's car. Tony fails to stop for the red light, and his car his Pete's car which is then pushed into Cindy's car. Cindy is injured and all of the cars are damaged. Under joint and several liability, which one of the following statements is correct? - ANSWER - Tony is the lone tortfeasor.There are no joint tortfeasors.
When assigned a theft claim, the claims rep should take a recorded statement from the insured - ANSWER - regarding the vehicle and the loss circumstances. When questioning the insured about the loss, the claims rep should consider all possibilities.
The statement should include when and where the vehicle was acquired, the VIN, whether it was financed, and whether it had any - ANSWER - recent repairs. In addition, the statement should include information that will help calculate the vehicle's value, such as the vehicle's overall condition, optional equipment, and mileage.
When a vehicle is recovered, it may require repairs. The claims rep should have the recovered vehicle - ANSWER - inspected and any damage appraised. Most insurers will declare the vehicle a total loss if it's not recovered within a designated period of time. 2 / 4
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pg. 3 Replacement cost - ANSWER - The cost to repair or replace property using new materials of like kind and quality with no deduction for depreciation.
Actual cash value (ACV) - ANSWER - The cost to replace property with new property of like kind and quality less depreciation. To calculate ACV, claims reps must determine the replacement cost and then subtract depreciation.
Auto physical damage claims generally involve one of three scenarios: -
ANSWER - The vehicle is damaged and repairable.The vehicle is damaged beyond repair.The vehicle is stolen and not recovered.
When a vehicle is repairable, the claims rep - ANSWER - obtains an estimate and then concludes the claim by paying the insured the amount needed to repair the damage, minus the deductible.
When a vehicle is declared a total loss because it's not recovered or
because of damage, the claims rep must determine two things: -
ANSWER - the vehicle's pre-accident ACV and any salvage value the damaged vehicle may have.
Salvage value is the amount that a - ANSWER - salvage yard pays for the damaged vehicle minus expenses, such as towing and storage.
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pg. 4 How would you determine a car's pre-accident ACV and salvage value?
- ANSWER - A claims rep can determine pre-accident ACV by using
reference material such as that provided by Kelley Blue Book or the National Automobile Dealers Association. The claims rep must know the vehicle's make, model, year, and mileage, along with any optional equipment, to correctly determine the ACV.Salvage value can be determined by obtaining bids from various salvage dealers, either through a salvage pool or a bid process.
Direct repair programs (DRPs) - ANSWER - A program by which insurers provide a network of repair facilities that meet the insurer's criteria for quality work at cost-effective prices.
While driving a rental car, Arthur has an accident and is found to have been intoxicated. Which one of the following scenarios regarding primary coverage is likely to occur? - Correct Answer - His PAP would become primary.Most rental car agreements will void coverage in the case of impaired driving, so the insured's PAP would become primary.
Which one of the following best defines an advance payment? - ANSWER - A partial claim payment issued without obtaining a signed release.An advance payment is a partial claim payment issued without obtaining a signed release, usually for the purpose of helping the claimant to cover immediate expenses.
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