Professional Standards & Ethics 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.
Read the first 7 Professional Standards & Ethics flashcards as text
A claimant is not represented by an attorney and asks the adjuster whether they should hire one. What is the most appropriate response?
Answer: Tell them it is their decision and avoid giving legal advice
Adjusters must not give legal advice or discourage claimants from obtaining counsel.
Under the Fair Credit Reporting Act, if an insurer takes adverse action based in part on a consumer report, what must it do?
Answer: Provide an adverse action notice identifying the consumer reporting agency
The FCRA requires an adverse action notice that names the reporting agency and explains the consumer's rights.
An adjuster misrepresents policy provisions to a claimant to reduce the payment. This conduct is best described as:
Answer: An unfair claims settlement practice
Misrepresenting pertinent facts or policy provisions relating to coverage is a listed unfair claims practice.
Which action best demonstrates an adjuster's commitment to professional competence?
Answer: Completing continuing education and pursuing designations like the AIC
Ongoing education and professional designations keep adjusters current with law, coverage, and best practices.
A public adjuster is hired by and owes a duty to whom?
Answer: The insured
Public adjusters are licensed to represent the insured, not the insurer, in negotiating a claim.
A claims supervisor pressures an adjuster to close files by denying claims without investigation to meet monthly targets. What is the best ethical response?
Answer: Refuse to deny without a reasonable investigation and escalate the concern through appropriate channels
Refusing to pay claims without conducting a reasonable investigation is an unfair practice regardless of internal pressure.
Why is thorough, contemporaneous file documentation an ethical as well as practical requirement?
Answer: It demonstrates the claim was handled fairly and supports defense against bad-faith allegations
Complete documentation shows the reasoning and timeliness of decisions, which protects both the insured and the insurer.
How this page was made: written with AI tools and published by Nathan Beja, founder of Practice Test Geeks, who is responsible for its content. Exam facts are checked against the official sources listed below. Not reviewed by a subject-matter expert. Editorial policy
Sources & references
Exam facts on this page (fees, format, dates, passing scores) are checked against these official sources; the date is our last check. Editorial policy
- web.theinstitutes.org — Passing score, registration deadline, renewal, retake fee, retake policy, score release, score validity, test delivery, fees, exam format · verified Oct 2026