AIC Study Guide 2026

A claims adjuster is a professional who investigates insurance claims to determine the extent of the insurer's liability. Their function involves gathering facts, interviewing witnesses, inspecting damages, and reviewing policy terms to assess the validity of the claim. Based on their findings, they recommend an appropriate settlement amount to the insurance company, ensuring fair and accurate resolution.

Redundancy, regular testing, and documented recovery procedures create a robust environment that minimizes downtime and data loss.

The primary objective of compliance and regulatory frameworks is to ensure adherence to standards that protect stakeholders.

Actual Cash Value (ACV) is important in insurance claims because it determines the amount an insurer will pay for damaged or lost property. ACV is calculated as the replacement cost of an item at the time of loss, minus depreciation due to age, wear, and tear. This valuation method means the policyholder receives the depreciated value, not the cost to buy a brand-new replacement, unless their policy specifies replacement cost coverage.

Indemnification means making the injured party financially whole by compensating them for actual losses suffered as a result of the insured's negligence.

Operational risk refers to the risk of loss resulting from inadequate or failed internal processes, people, and systems, or from external events. A system failure causing data loss directly falls under this category because it stems from a breakdown in internal technology and processes. This contrasts with risks like natural disasters (external, often insurable) or market downturns (financial/strategic risk).