AIC 302 SIMULATED ACTUAL EXAM QUESTIONS

AIC 302 SIMULATED (ACTUAL / ) EXAM QUESTIONS

AND VERIFIED CORRECT ANSWERS

Joe insures his auto under a personal auto policy (PAP) with Part C-Uninsured Motorists (UM) split limits of $25,000/$100,000/$10,000. He is struck by a hit-and-run driver while driving his children to school. Joe was seriously injured with $20,000 in medical expenses and $10,000 in lost wages.His daughter had medical expenses of $12,000 and his son suffered minor injuries with medical expenses of $1,500. Joe's car also had $15,000 in damages. How much would be paid under the UM limits of Joe's PAP?$48,500 Joe's PAP would pay $48,500 under the UM split limits. The per person limit of $25,000 would limit the payments for Joe to $25,000. It would pay the full amounts of $12,000 and $1,500 for his children because that total would still be under the $100,000 per accident limit. The payment for the damage to the auto would be limited to $10,000. ($25,000 +

$12,000 + $1,500 + $10,000 = $48,500)

Kevin was driving to work when another car, driven by Jack, ran a red light and struck his car. Kevin was seriously injured and out of work for a month. It was determined that Jack was the at-fault driver, but the Part A-Liability limit on his personal auto policy (PAP) was below the minimum limits required by the state. Kevin decided to collect the lower liability payment 1 / 3

under Jack's policy, and then collect the remaining expenses under Part C-Uninsured Motorists of his own PAP.Which one of the following UM exclusions could apply in this situation?Claim Settlement That Prejudices Insurer's Right of Recovery Kevin's PAP insurer could apply the Claim Settlement That Prejudices Insurer's Right of Recovery exclusion. By accepting a settlement with Jack, Kevin could limit his insurer's rights of recovering payments from Jack.

Laura was injured in an auto accident due to the fault of the other driver. Her injury will involve permanent impairment and will decrease her opportunity to earn a living. She has incurred medical expenses and will continue to experience pain and suffering. Which one of Laura's damages is considered a natural and necessary result of her bodily injury?Pain and suffering are considered a "natural and necessary" result of a claimant's bodily injury. A claimant is entitled to recover for pain and suffering from an injury caused by the tortfeasor.

Aaron is a claims representative who has completed an investigation of a bodily injury claim. Throughout the process, he gathered injury information and documents; monitored and updated the plan; assessed treatment, disability, and 2 / 3

impairment; and analyzed records and reports. The first step in Aaron's investigation was to Gather injury information and documents. This is the first of four steps in the bodily injury investigation process.

Which one of the following best defines an advance payment?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.

Juan is calculating a settlement in an auto liability claim and is determining a reasonable estimate of the damages the claimant is likely to be able to prove. In estimating the initial probable verdict range, Juan bases his calculations Solely on provable damages without considering liability or other variables. The initial probable verdict range is based solely on provable damages, without considering liability of other variables, such as characteristics of the insured or claimant or venue of the case.

Fox Auto Dealership (Fox) is insured under the Auto Dealers Coverage Form (ADCF). Section III - Acts, Errors, or Omissions

• / 3