AIC Cheat Sheet 2026

The 30 highest-yield AIC facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. What is 'due diligence' in the context of regulatory compliance? → A thorough effort to meet compliance obligations
2. In a pure comparative negligence state, a claimant 30% at fault with $100,000 in damages may recover: → $70,000
3. Why might a claims department track the reopened-claim rate as a quality measure? → High reopen rates can signal claims were closed prematurely or incompletely
4. Under the NAIC Unfair Claims Settlement Practices model regulation, an insurer generally must acknowledge receipt of a claim notice within how many days? → 15 days
5. How is a public adjuster different from an independent adjuster? → A public adjuster represents the insured, not the insurer
6. A settlement providing periodic payments over time, often funded with an annuity, is a: → Structured settlement
7. A claims department sets a goal of contacting every insured within 24 hours of a reported loss. What type of standard is this? → Service-level or timeliness standard
8. How can positive language improve customer interactions? → By emphasizing solutions and opportunities
9. Which measure would a risk manager most likely use to judge whether a claims department's reserving practices are adequate? → Loss reserve development over time
10. What is a common cause for claim denial? → Policy exclusions or fraud
11. Which statement to a claimant could create an unauthorized commitment? → Don't worry, the policy will definitely cover the full replacement cost.
12. Which is the BEST reason for a claims manager to use SMART goals with adjusters? → They make goals specific, measurable and time-bound so progress can be judged objectively
13. Which communication & collaboration technique is MOST appropriate when delivering complex information in Associate in Claims? → Breaking information into manageable segments and confirming understanding
14. A predictive model flags a workers compensation claim early as likely to become high cost. What is the most appropriate claims response? → Assign it to an experienced adjuster and apply early intervention resources
15. A barrel falls from a warehouse window onto a pedestrian, and the defendant had exclusive control of the warehouse. Which doctrine lets negligence be inferred? → Res ipsa loquitur
16. What is the MOST effective way to stay current with developments in core principles & fundamentals for Associate in Claims? → Participating in professional development, industry events, and peer collaboration
17. An adjuster restates a claimant's concern: "So you're worried the repair shop won't be paid on time." This technique is called: → Paraphrasing
18. Tone of voice is especially important in phone communication because: → No visual cues are available, so tone carries much of the emotional message
19. Which documentation & reporting practice is MOST critical for maintaining data integrity in Associate in Claims? → Standardized input procedures with validation checks and regular audits
20. An adjuster discovers red flags of possible fraud. How should the adjuster communicate with the claimant while the SIU investigates? → Continue professional, neutral communication without disclosing suspicions
21. In the context of claims litigation, what does 'subrogation' allow an insurer to do? → Pursue recovery from a negligent third party after paying a claim
22. An adjuster licensed only in Ohio is sent to handle claims after a hurricane in Florida. Florida most likely allows this through: → An emergency adjuster license or temporary authority
23. A claimant who speaks limited English calls about a claim. The best practice is to: → Use a qualified interpreter or language service
24. Under the ISO HO-3, how are Coverage A (dwelling) and Coverage C (personal property) written? → Coverage A open perils; Coverage C named perils
25. What is the PRIMARY purpose of documentation & reporting in Associate in Claims? → To provide accurate, accessible information for decision-making and compliance
26. An insurer takes ownership of a total-loss vehicle after paying its actual cash value. What is the money it later gets from selling that vehicle called? → Salvage
27. What is the main purpose of checking a claim against ISO ClaimSearch? → To find prior or duplicate claims across insurers that may point to fraud
28. Which metric best measures how accurately initial reserves predict final claim costs? → Reserve adequacy or reserve development
29. An adjuster preparing a property estimate uses Xactimate. What is the primary function of this type of software? → Pricing repairs using localized labor and material cost databases
30. An insurer agrees to cover a manufacturer's product liability exposure. From the manufacturer's perspective, this is which risk management technique? → Transfer