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Claims Processing & Documentation Flashcards

7 cards from real AIC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

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  1. An adjuster supervising defense counsel requires litigation budgets, status reports, and approval before major motions. What is this practice called?

    Answer: Litigation management

    Litigation management controls defense cost and strategy through guidelines, budgets, and reporting requirements.

  2. What is claim triage at intake mainly used for?

    Answer: Assigning claims to adjusters with the right skill level based on complexity and severity

    Triage sorts claims by complexity, severity, or fraud potential so each one goes to the right handler.

  3. A liability claim settles with periodic payments funded by an annuity rather than a single lump sum. What is this called?

    Answer: Structured settlement

    A structured settlement pays the claimant over time, often through an annuity, which suits long-term needs.

  4. Why should an adjuster photograph damaged property before any repairs or cleanup start?

    Answer: To keep objective evidence of the damage's extent and cause for evaluation, subrogation, and possible disputes

    Photos taken before repair preserve evidence that supports valuation, causation, and recovery from responsible parties.

  5. An insurer fails to keep the defective water heater that caused a covered loss, and so loses its subrogation case against the manufacturer. What problem does this show?

    Answer: Spoliation of evidence

    Spoliation is the destruction or loss of evidence, and it can wreck subrogation and expose the insurer to sanctions.

  6. What is a diary (suspense) system mainly used for in claim file management?

    Answer: Scheduling follow-up reviews and deadlines so files keep moving

    Diary systems remind adjusters of pending actions and regulatory deadlines, which keeps claims from stalling.

  7. Two policies cover the same loss, and both have contribution by equal shares clauses. Policy A has a $100,000 limit and Policy B has a $300,000 limit. How much does each insurer pay on a $150,000 loss?

    Answer: A pays $75,000 and B pays $75,000

    Under equal shares, each insurer pays equally until the smaller limit runs out, so each pays $75,000 because neither limit is exceeded.

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  1. web.theinstitutes.org — Passing score, registration deadline, renewal, retake fee, retake policy, score release, score validity, test delivery, fees, exam format · verified Oct 2026