AIC 303 FINAL EXAM NEWEST 2025 TEST BANK

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AIC 303 FINAL EXAM NEWEST 2025 TEST BANK|

COMPLETE 400 ACTUAL EXAM QUESTIONS

AND CORRECT DETAILED ANSWERS

(VERIFIED ANSWERS) |ALREADY GRADED A+|

AIC 303 EXAM PREP |BRAND NEW!!

The typical personal umbrella policy includes coverage for personal injury liability, property damage liability, and A. Business pursuits.

• Professional liability.
• Defense costs.
• Intentional injury. - Correct Answer - C. Defense costs.

Under the Additional Coverages in Section Il—Liability Coverages of the HO-3 policy, the insurer promises to pay certain claim expenses.These covered expenses include which one of the following?

• Any post judgment interest that accrues before the plaintiff is paid

by the insurer

• An unlimited amount of wages lost by the insured while assisting

in defense of a claim or suit

• The face amount of any bond the insured is required by the court

to obtain

• The premium on bonds in excess of the policy's Coverage E limit -

Correct Answer - A. Any post judgment interest that accrues before the plaintiff is paid by the insurer 1 / 4

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pg. 2 In most cyber risk policies, the coverage territory for third-party liability claims is

• Limited to the countries served by the insured.
• Limited to areas specifically noted in the Declarations.
• Worldwide.
• Limited to the United States. - Correct Answer - C. Worldwide.

A following form excess liability policy will treat a loss caused by a peril excluded by the underlying policy in which one of the following ways?

• It will provide coverage subject to a self-insured retention.
• It will provide coverage subject to a buffer layer.
• It will exclude coverage except for punitive damages.
• It will exclude coverage. - Correct Answer - D. It will exclude

coverage.

The Upsilon Corporation has a Commercial General Liability (CGI) Coverage Form with an each occurrence limit of $1 million for liability coverage. It also has an additional policy that provides another $1 million of coverage if the CGL limits are inadequate. The additional policy only applies if the commercial general liability policy covers the loss. This additional policy is an example of A. An aggregate liability policy.

• An excess liability policy.
• Underlying liability coverage. 2 / 4

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• An umbrella liability policy. - Correct Answer - B. An excess liability

policy.

All of the following are included as insureds for Section Il coverages in

the HO-3 policy, EXCEPT:

• Residents of the household who are under the age of 21 and in the

care of the named insured

• Relatives of the named insured who are visiting in the household

for the weekend

• Any person legally responsible for an animal owned by the named

insured

• The spouse of the named insured, residing in the same household -

Correct Answer - B. Relatives of the named insured who are visiting in the household for the weekend

Which one of the following businesses would most likely be eligible for coverage under an ISO Businessowners Policy?

• Dry Cleaners — 20,000 square feet, gross sales of $2 million
• Henri's Gourmet Restaurant — gross sales of $3 million, 40,000

square feet

• Antique Auto Dealers — gross sales of $2 million
• Convenience Store — gasoline sales 60 percent of gross sales, 25,000

square feet - Correct Answer - D. Convenience Store — gasoline sales 60 percent of gross sales, 25,000 square feet

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pg. 4 It is important to ascertain who is covered under the policy because coverage provisions may differ from insurer to insurer. Although the breadth of coverage may differ from one professional liability policy to

the next, they all provide coverage for Select one:

• The individual professional named in the policy.
• Directors and officers of the professional organization.
• Stockholders of the professional organization, as long as it is

organized as a limited liability corporation.

• Employees of the professional organization. - Correct Answer - A.

All professional liability policies cover the individual professional named in the policy.

With a few limited exceptions, commercial general liability

policies specifically exclude Select one:

• Personal injury perils.
• Directors and officers liability perils.
• Pollution and environmental perils.
• Unfair employment practices perils. - Correct Answer - C. With a

few limited exceptions, commercial general liability policies specifically exclude pollution and environmental perils.

In order for a court to review a settlement of a claim that is not in suit, one party must file an action against the other party. This action is called

Select one:

• A friendly suit.
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