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A hail claim involves multiple structures, possible business income loss, and media attention from a large commercial insured. Which handling decision is best at intake?

Assign it to the lowest-cost vendor and revisit staffing later

Handle it as a standard single-adjuster file to avoid overhead

Escalate it early and build a coordinated large-loss handling plan

Wait for a lawsuit before involving anyone else

to track

2026 Statistics

Key Facts: AIC Exam

Courses Plus Ethics

2 core + 1 elective + free ethics

Questions Per Exam

The Institutes exam information

65 min

Time Per Exam

The Institutes exam information

70%

Passing Score

The Institutes exam information

$259

Early Exam Fee

2026 registration form

6-9 mo

Typical Completion Time

AIC designation page

AIC is not a single comprehensive licensing exam. It is a three-course designation path from The Institutes: AIC 300, AIC 301, and one elective specialty course, plus the free ethics course. Each AIC course exam is a 50-question virtual exam with 65 minutes and a 70% passing score. In 2026, The Institutes lists AIC exam registration at $259 early or $339 standard per exam window, while AIC online learning packages are listed separately at $419 per paid course.

Sample AIC Practice Questions

Try these sample questions to test your AIC exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 200+ question experience with AI tutoring.

1A hail claim involves multiple structures, possible business income loss, and media attention from a large commercial insured. Which handling decision is best at intake?

A.Assign it to the lowest-cost vendor and revisit staffing later

B.Handle it as a standard single-adjuster file to avoid overhead

C.Escalate it early and build a coordinated large-loss handling plan

D.Wait for a lawsuit before involving anyone else

Explanation: Large, visible, multi-issue claims should be escalated early so the insurer can assign the right resources and communication plan. Early coordination reduces missed exposures, service failures, and reserve volatility.

2At first notice of loss, what is the adjuster’s most important objective during the initial call with the claimant?

A.Promise a settlement amount before reviewing the file

B.Gather core facts, explain the next steps, and set realistic expectations

C.Obtain a signed release immediately

D.Direct the claimant to contact defense counsel

Explanation: The first contact should establish control of the claim by collecting essential facts and explaining what will happen next. That reduces confusion, builds trust, and gives the adjuster a reliable baseline for triage and coverage review.

3A lawsuit is filed six months after an adjuster set a modest reserve on a bodily injury claim. What is the best reserve practice now?

A.Leave the reserve unchanged until discovery closes

B.Increase the reserve only if the plaintiff demands policy limits

C.Reevaluate exposure promptly and document the rationale for any reserve change

D.Reduce the reserve because defense counsel is now involved

Explanation: A suit filing is a meaningful change in claim posture and often affects indemnity and expense expectations. Reserves should be reexamined promptly and supported by documented reasoning rather than by inertia.

4Which statement best distinguishes claim severity from claim complexity?

A.Severity concerns dollar exposure; complexity concerns the number and difficulty of issues to resolve

B.Severity applies only to liability claims and complexity only to property claims

C.Severity measures customer satisfaction while complexity measures cycle time

D.There is no meaningful difference in claims practice

Explanation: Severity is primarily about financial exposure, while complexity is about how many factual, legal, medical, or coverage issues must be managed. A claim can be low severity but highly complex, or high severity but operationally straightforward.

5An adjuster receives a settlement demand above personal authority but below the likely value range. What should happen next?

A.Reject the demand automatically because it exceeds authority

B.Pay it anyway to avoid escalation

C.Escalate with a supported evaluation and recommendation

D.Close the file until more authority is granted

Explanation: Authority limits control decision-making, not claim merit. The adjuster should present the facts, valuation, and recommendation so higher authority can act promptly.

6What is the main purpose of a claim diary system?

A.To replace written claim notes

B.To schedule timely follow-up and prevent inactivity on the file

C.To calculate legal damages automatically

D.To determine whether coverage exists

Explanation: A diary system helps the adjuster control the file by prompting follow-up tasks, deadlines, and status checks. It does not replace analysis or documentation, but it prevents claims from stalling.

7A reopened claim is hurting closure metrics, and a manager suggests leaving it closed until final payment is ready. What is the better practice?

A.Keep it closed so the report looks cleaner

B.Reopen it when new handling activity resumes and track the reopening reason

C.Delete the original closure date

D.Move it to a different unit so the metrics do not count

Explanation: Accurate operational data matters because it reveals process weaknesses and supports better staffing and training decisions. Manipulating status codes hides the true workflow and undermines management reporting.

8Why do many carriers track indemnity reserves separately from expense reserves?

A.To distinguish claim payment exposure from handling and defense costs

B.To make every file look less severe

C.To avoid documenting vendor bills

D.To eliminate the need for coverage analysis

Explanation: Separate reserve buckets give a clearer picture of what portion of exposure is expected to go to the claimant and what portion will be spent investigating, adjusting, or defending the claim. That improves forecasting and management reporting.

9How should an adjuster handle social-media information that appears inconsistent with a claimant’s injury presentation?

A.Ignore it because social-media evidence is never useful

B.Document the source, preserve what is publicly available, and evaluate it with the rest of the evidence

C.Contact the claimant through the social-media platform for a recorded statement

D.Deny the claim immediately based only on the post

Explanation: Social-media evidence can be relevant, but it must be preserved carefully and evaluated in context. A single post may be misleading, so it should support investigation rather than replace it.

10What type of interview question usually produces the most useful initial narrative from a claimant?

A.A leading yes-or-no question

B.An open-ended question that lets the claimant describe events in sequence

C.A compound question covering several issues at once

D.A confrontational question designed to test credibility immediately

Explanation: Open-ended questions encourage fuller narratives and reduce the risk that the adjuster unintentionally shapes the answer. They are especially useful early in the interview before narrowing into specifics.

About the AIC Exam

The Associate in Claims (AIC) is The Institutes' national claims designation for insurance professionals who want stronger real-world skill in claims handling, investigation, fraud recognition, coverage application, negotiation, and specialty claim evaluation. The current program uses two core courses for claims fundamentals and law, one elective specialty track in auto, liability, property, or workers compensation, and a separate free ethics requirement.

Assessment

3-course designation path: 2 core courses (AIC 300 and AIC 301), 1 elective (AIC 302, 303, 304, or 305), and the free Ethical Decision Making in Risk and Insurance course

Time Limit

65 minutes per course exam

Passing Score

70% per course exam

Exam Fee

$259 early / $339 standard per course exam in 2026 (The Institutes Knowledge Group)

AIC Exam Content Outline

15%

Claims Foundations & Customer Service

Derived from AIC 300. Focus on the claim lifecycle, service recovery, customer expectations, collaboration, reserves, and insurer reputation risk.

15%

Investigation, Interviews & Fraud

Derived from AIC 300. Focus on statements, witnesses, experts, evidence handling, data use, and fraud recognition.

15%

Coverage Analysis & Good Faith

Derived from AIC 301. Focus on policy interpretation, coverage analysis, duties after loss, reservation-of-rights issues, and fair claims handling.

15%

Liability, Negotiation & Dispute Resolution

Derived from AIC 301. Focus on legal responsibility, damages, negotiation strategy, attorney coordination, and resolving disputes outside court.

10%

Auto Claims Evaluation

Derived from AIC 302. Focus on auto physical damage, injury evaluation, total loss decisions, ADAS and EV issues, and claim valuation.

10%

Liability Claims Evaluation

Derived from AIC 303. Focus on CGL-style liability analysis, duty to defend, settlement decisions, and complex bodily injury and property damage scenarios.

10%

Property Claims Evaluation

Derived from AIC 304. Focus on cause and origin, scope and estimate review, ordinance-or-law issues, business income, and catastrophe workflows.

10%

Workers Compensation Claims Evaluation

Derived from AIC 305. Focus on compensability, medical and indemnity benefits, return-to-work, jurisdictional issues, and claim closure strategy.

How to Pass the AIC Exam

What You Need to Know

Passing score: 70% per course exam
Assessment: 3-course designation path: 2 core courses (AIC 300 and AIC 301), 1 elective (AIC 302, 303, 304, or 305), and the free Ethical Decision Making in Risk and Insurance course
Time limit: 65 minutes per course exam
Exam fee: $259 early / $339 standard per course exam in 2026

Keys to Passing

Complete 500+ practice questions
Score 80%+ consistently before scheduling
Focus on highest-weighted sections
Use our AI tutor for tough concepts

AIC Study Tips from Top Performers

1Study AIC in program order. AIC 300 gives you the service, investigation, and fraud foundation that makes AIC 301 and the electives easier.

2Treat every practice item like a real claim file. Ask what facts you need, what the policy says, what damages exist, and what the next best action is.

3Do not memorize policy buzzwords in isolation. AIC questions reward application of contract language, claim facts, and good-faith obligations together.

4Use the simulated exam late in your prep. The Institutes explicitly recommends taking it after you finish the course material and quizzes.

5Spend extra time on negotiation, documentation, and communication. Those skills recur across the two core courses and every specialty track.

6Keep a short list of current claims issues before test day, especially AI-enabled fraud, EV repair complexity, medical inflation, and workers comp return-to-work trends.

Frequently Asked Questions

Is AIC one exam or a full designation program?

AIC is a full designation program, not one comprehensive exam. The current The Institutes path requires AIC 300, AIC 301, one elective specialty course, and the free Ethical Decision Making in Risk and Insurance course.

What is the current AIC exam format?

Each AIC course exam is a virtual exam with 50 questions and a 65-minute time limit. The Institutes offers four testing windows each year, and you can complete the exam at any point during your registered window.

What score do I need to pass AIC?

The Institutes states that the minimum passing score for its designation exams is 70%. That standard applies to each AIC course exam.

How much does AIC cost in 2026?

The 2026 Institutes registration form lists AIC exam fees at $259 with the early virtual discount or $339 at the standard virtual rate for each course exam. Separately, the 2026 study-materials order form lists AIC online learning packages at $419 per paid course, and the ethics course is free.

What are the official AIC content areas?

The Institutes publishes the program structure rather than one master designation-wide blueprint. Officially, AIC consists of two core courses focused on claims handling and claims law plus one elective specialty track in auto, liability, property, or workers compensation. The weightings on this page are derived from that published two-core-plus-elective structure.

How long does AIC usually take to complete?

The AIC designation page lists a typical completion time of 6 to 9 months. The same page lists an average course pace of 4 to 6 weeks, which fits a one-course-at-a-time study plan.

Were there any AIC-specific 2026 exam or regulatory changes?

As of March 12, 2026, The Institutes had not posted a new AIC blueprint, scoring change, or testing-window change specific to 2026. The current Institutes claims and ethics catalog emphasizes emerging issues such as AI fraud, legal system abuse, EV and hybrid auto claims, medical inflation, and virtual care in workers compensation, so those are reasonable current-awareness topics for AIC candidates.