American Institute of Constructors (AIC) Level 2 Practice Test

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• Which group is least likely to require equipment breakdown or boiler and machinery coverage?
• Which of the following statements best describes what a premium represents?
• Underwriting concern reworded: rented dwellings underwriting considerations include which of the following?
• Which items should be included in a comprehensive QA/QC plan?
• Would the financing company retain cancellation rights?
• Which option is not part of the hierarchy of controls?
• Under SPF1, which uses are prohibited unless permission is given by the insurer?
• What is the main purpose of a schedule of values in construction project accounting?
• Do staff adjusters need to be licensed?
• An extra expense policy is designed to cover which scenario?
• In an Uber driver scenario, which SPF policy applies?
• Condominium unit owners unit additional protection coverage reworded: which statement is most accurate?
• What will happen if the contractor bolts town and leaves a job not completed after being paid a proportion in amount at the 50% completion date?
• Which document is part of preconstruction planning and helps ensure quality and safety during construction?
• Which of the following best describes a soft insurance market?
• Which statement about be increased cost due to bylaw compliance endorsements is true?
• An adjuster might legitimately decline to pay a loss under a fire policy for which reason?
• How many power units are required to qualify for fleet?
• When does unit additional protection coverage apply?
• Which factors influence productivity on a construction site?
• What is the primary purpose of the baseline schedule in CPM scheduling, and how is it used during construction?
• What is the role of nondestructive testing in quality control, and give examples?
• Which statement about coinsurance in business interruption coverage is correct?
• A neighbor's tree overhanging the fence causing annoyance is best described as?
• Seasonal dwelling policies can be written as standalone policies or shown as a separate location on a homeowners policy.
• Farm barn coverage: what coverage does the farmer have for the barn?
• What is a data book, and what documents does it typically include at project handover?
• Coinsurance in business interruption coverage typically requires the insured to carry coverage at a specified percentage of what?
• Why is permitting and jurisdictional compliance essential in project execution?
• Which statement about unit-price contracts is true?
• The SEF21B blanket fleet endorsement may be attached to which type of policy?
• In premium financing, who pays the monthly payments consisting of the outstanding premium plus interest?
• Which form includes coverage for ordinary payroll?
• If CPI is less than 1 and SPI is less than 1, what is the project status?
• What does LEED stand for?
• Which coverage under a mobile home policy are tiedown straps covered?
• Which of the following describes a typical benefit of integrated project delivery (IPD)?
• What distinguishes OSHA 10 from OSHA 30 training?
• Which of the following is an element of tort?
• Boiler and machinery insurance covers
• What is liability insurance and why is it important on construction projects?
• AnSPF9 transportation networks policy is needed when which of the following is true?
• Which SPF policy would apply to a driver who works via a rideshare platform?
• Which statement best describes the purpose of condominium unit owners unit additional protection coverage?
• Using additional agreements for section C of SPF, when the vehicle is stolen, when does coverage commence for alternative transit costs?
• In a tenant policy, the bookshelf etc. with a $250 deductible, how much will Coverage C pay given a $1,000 bookshelf and $20,000 liability to the apartment complex?
• Which entity is insured under SPF 1?
• What does the SEF 30 excluding operation of attached machinery endorsement address?
• Insurance contracts are based on indemnity, which of the following concepts does not relate to the principle of indemnity?
• In a homeowners policy, increased cost due to bylaw compliance is excluded. If you recommend adding a bylaw endorsement on a house built in the mid-1900s, this endorsement will...
• What is a latent defect and how is it typically addressed in warranties?
• Why might a project pursue LEED?
• Punitive damages are intended to punish the defendant and deter others.
• Which activity involves on-site risk inspection, including safety features, hazards, or design faults?
• What percentage of coinsurance is coming on a farm policy?
• Finished stock exclusion is typically associated with which form?
• What is rework, and how does it impact schedule and cost?
• Which statement describes coverage under the mobile home package form?
• Which endorsement accompanies SPF1 for a long-term lease?
• Which elements best describe a safety program and the hierarchy of controls?
• Which of the adjusters is hired by the insured?
• What is a window analysis in delay claims used to do?
• Under SPF 1, who is the head of the household for benefits purposes?
• What is the likely next step when arbitration rulings cannot be overturned by litigation?
• Keeping a tiger on premises that escapes would trigger which doctrine?
• Which project delivery method often accelerates delivery by overlapping design and construction activities?
• Which statement describes general procedures of premium financing?
• Who owns the salvage after loss has been indemnified?
• What are the key preconstruction planning deliverables that help set project direction?
• In BIM, clash detection identifies interferences before fabrication; this is important because it primarily reduces which on-site issue?
• Which nondestructive testing method uses high-frequency sound waves to detect internal flaws?
• If coverage for alternative transit costs is triggered after theft, how long must pass before coverage begins?
• What is life-cycle cost analysis and why is it important in procurement?
• Which document is typically used to start the project risk management process by identifying potential threats and mitigation strategies?
• Ultra-hazardous activities are most closely associated with which doctrine?
• Which of the following is included as one of SPF4's six sections?
• Who is responsible for means and methods in construction, and how does this affect risk?
• Joint and Several Liability allows a plaintiff to pursue a claim against one or more parties.
• Total disability benefits under section B are payable after a seven-day waiting period. Which of the following is true?
• Which of the following statements is true regarding deductible exemptions under SPF 1?
• What is a nonconformance report (NCR) and how is it used in construction quality management?
• Explain performance bonds and payment bonds and why owners require them.
• Distinguish between QA and QC in construction.
• Which document is used to measure progress payments by breaking work down by trade or area?
• A mobile home is being moved on a very windy day and is damaged by the moving company. Is this covered under the insured policy?
• Under a broad form commercial policy, the coverage for trees includes a per-tree amount and an aggregate amount; this coverage is provided for which set of perils?
• A subscription policy is characterized by which of the following?
• Which statement about risk distribution in design-build contracts is correct?
• A reinsurer’s primary function is to allow the primary insurer to do what?
• What are total float and free float, and how can management of float affect project outcomes?
• The condo corporation has damages to the building and contents. The condo corporation has insurance and you also have condo unit insurance. Which statement describes the typical order of payout?
• Which endorsement is commonly used on fleet insurance to handle premium cancellation?
• A common carrier is defined as which of the following?
• In a mobile home policy, which coverage commonly protects personal property inside the home?
• Optional extensions are available on which form?
• What is integrated project delivery (IPD) and what makes it different from traditional contracts?
• What is the Davis-Bacon Act and who does it affect?
• Attendance package policy scenario reworded: which policy best fits renting accommodation and wanting contents and liability coverage?
• What is a common outcome of a well-executed constructability review?
• If a client with SPF 1 has no group benefits and only requires chiropractic care under section B, what is the maximum benefit?
• What is a punch list and when is it typically used?
• Under an SPF4 garage automobile policy, which statement is correct about exclusions?
• What is the purpose of a daily field report?
• Pain and suffering is an example of which type of damages?
• Which practice helps protect the critical path by managing float?
• In contract interpretation, which term is not related to indemnity?
• What is the purpose of submittals and RFIs in project administration?
• Which statement about adjuster licensing is accurate?
• Which is true of surety?
• For a small online business whose employee uses their own vehicle to transport packages, which SPF category is needed?
• Which closeout deliverable is typically included to facilitate ongoing operation and maintenance?
• Which statement best describes mediation and arbitration?
• Which statement about the critical path is true?
• Which of these is covered under a boiler and machinery policy?
• Under SPF 1, which statement defines the head of the household?
• Which of the following is an underwriting concern with respect to rented dwellings?
• Which of these is not a compensatory damages type?
• A schoolteacher takes a sabbatical for a year and sublets her house; where are her items stored and for how long?
• How many sections does SPF4 include?
• On a default, which statement is true about surety protection?
• A customer buys a large television and other items. During transport, the TV is kept upright in the vehicle and is damaged before returning home. Is the TV covered under the transportation peril?
• Livestock insurance is?
• Which statement about change directives is true?
• Total disability benefits under SPF 1 are payable for up to 104 weeks. Which option reflects this?
• Which of these is not an element of tort?
• Which item is typically included in daily field reports to support recordkeeping of on-site activity?
• Which statement about adjuster licensing is accurate?
• Why are weather considerations important in scheduling, and what strategies mitigate weather risk?
• If the business owner is away on extended vacation, how does the commercial broad form policy apply to the property?
• Your client bought subsection 4 of section C; which of the following is not excluded under specified perils?
• Which option best describes the insurance benefit of peace of mind?
• In procurement, what is the difference between make and buy decisions?
• To whom does the homeowner owe the greatest care?
• The business interruption insurance, gross earnings from contains a coinsurance clause which specifies that the insured must be her portion of any lost and lost the amount. Insured is at least.
• What are typical closeout deliverables and why are they important?
• Attendance package policy is issued to an insured who?
• Which of the following is true of the mobile home package form?
• Under SPF 1, which set of perils is NOT excluded under specified perils for subsection 4?
• On a broad form commercial policy, there is an allowance for outside trees for a specific amount per tree, as well as an aggregate amount with what coverage for the trees?
• In pricing, a rate manual includes which of the following?
• What factors must be considered when planning site logistics and temporary facilities?
• Which of the following losses would be covered under the refrigerator or freezer food extension of coverage?
• Which term describes a directive to proceed with a change without a formal change order when time is critical?
• Which statement best describes a hard insurance market?
• What is the purpose of lien waivers, and when are they typically used?
• Sod on the front lawn waiting to be installed is covered under homeowners policy Section 1, Coverage A?
• Which statement describes the order of coverage when a condo association master policy and unit policies exist?
• Which statement about contract modifications and risk allocation is true?
• During a sabbatical, if items are stored offsite, is coverage for those items for 30 days?
• When do habitation policies expire?
• Differentiate value engineering from value analysis.
• Which project delivery method separates design and construction under separate contracts with defined responsibilities?
• Which statement best describes why subcontractor prequalification is important and what factors are typically evaluated?
• Which statement best describes a potential benefit of design-build compared to traditional methods?
• Which coverage is specific to cyber extortion?
• What does a submittal typically include and purpose?
• Outside trees coverage for a broad form commercial policy, which option best describes the per-tree and aggregate coverage?
• SPF 9 in automobile insurance terminology stands for which policy type?
• In SPF4, 'Care, Custody, Control' refers to liability for damage to what?
• What is the next step after arbitration if it cannot be overturned by litigation?
• Which perils are excluded from a building glass insurance policy?
• Which feature is associated with a hard market?
• In a make-or-buy decision, which is typically not a primary consideration?
• Which statement best describes a subscription policy?
• What is constructability review, and how does it influence project planning?
• Conducting pre-underwriting for risk analysis, identifying possible frequency of loss and severity of loss solutions to medicate losses, performing financial analysis to determine business, income and insurance requirements and duration, performing on site risk inspection, including safety, features, hazard, or design fault is?
• A large acreage home with nine detached structures, a dog house and greenhouse, a detached secondary garage, and a tree house—what adjustment should be made to coverage?
• Which is not true of surety?
• Which statement best describes the Insurance Bureau of Canada (IBC)?
• After a nonconformance report (NCR) is issued, what is the typical sequence of actions?
• In an acreage home with multiple detached structures, what is the recommended improvement to coverage?
• For a long-term lease vehicle, which policy would you sell?
• Which statement about SEF21B blanket fleet endorsement is false?
• What is a schedule of values and its role in progress payments?
• A glass rider generally provides coverage for all accidental breakage of glass subject to exclusions.
• SPF2 is designed for which group?
• Which of the following is an objective of no-fault automobile insurance?
• What are mechanics liens and who may file them?
• Vicarious liability refers to the liability of an employer for the actions of an employee.
• Under a garage automobile policy, which vehicle is included when sold but not delivered?
• Items such as uniforms and boots for newly hired workers would be classified as which type of insured property?
• Peak season endorsement is best described as which?
• What is the purpose of a commissioning plan?
• Explain substantial completion and occupancy and their implications for risk, warranties, and payment.
• A boiler at a hospital explodes, resulting in a total loss to the hospital. Which policy responds to the loss?
• What are CPI and SPI in earned value management, and what do they indicate?
• Who is typically responsible for maintaining the data book during project handover?
• Compared to OSHA 10, OSHA 30 provides:
• Which of the following is an advantage of reinsurance?
• Which of the following does not require equipment breakdown or boiler machinery policy?
• How does a change order typically affect schedule and cost?
• Under SPF 1, who is insured?
• What is the key difference between broad form and named peril wordings for commercial property?
• Define net present value and its relevance to construction project decisions.
• Compare unit-price and lump-sum contracts; when is each most appropriate?
• What is a builder's risk policy and what does it cover?
• Profit form indemnity provides time for profits to reach pre-loss levels.
• In indemnity-based contracts, subrogation allows the insurer to do what?
• What is the primary objective of quality assurance (QA) in construction?
• Which SPF is explicitly identified for Non-Owned vehicle coverage?
• Which statement regarding the 21A monthly reporting endorsement for fleet premium cancellation is true?
• The commercial glass endorsement excludes which of the following?
• Under the refrigerator or freezer food extension, which scenario is covered?
• Which of the following correctly describes the head-of-household determination for SPF 1 benefits?
• Which of the following is the best example of how insurance benefits society?
• When considering a broad form policy, the coverage for employee clothing such as uniforms and boots is categorized as which type of property?
• Which SPF category is used when a business employee uses their own car to deliver packages?
• In fleet insurance, what does the term power unit most closely refer to?
• Which exclusion can be found on all 4 sections of a CGL?
• A loss ratio is defined as which of the following?
• Any boiler operating equipment in excess of ___ PSI requires a Boiler & Machinery policy?
• Describe Time Impact Analysis method used for delay claims.
• Under a broad form commercial policy, outdoor trees, shrubs, and plants are covered under which condition?
• How does rework impact a project’s schedule and cost?
• What is the function of a risk register and how is a risk matrix used?
• SPF1 covers which group?
• If a business owner is away for more than 30 consecutive days, what is the effect on coverage under the broad form policy?
• Under a Glass Rider, which statement is true?
• Under boiler and machinery coverage, which item is typically included?
• Which peril will the insurer not apply a deductible to under subsection 1, 3, or 4 of section C of SPF 1?
• How are overhead and general conditions treated in a construction cost estimate?
• Condo association policy does not adequately insure the damages to the common areas. There is a $150,000 loss to the common areas and a $2,000 assessment per condo unit owner. You are adequately insured but only 75% of other condo units have adequate coverage. How will your insurance respond?
• Your client has a seasonal dwelling policy for a lakefront cottage. Which statement about seasonal dwelling policies is true?