AIC Adjuster Level 2 Licensing Readiness Review Cheat Sheet

Use the tables for a quick pre-exam check. Expand a topic’s notes for explanations, examples, and additional distinctions.

Official route at a glance

Verify current details with AIC before applying.

Classify before acting

Keep these pairs separate

Review-ready file note

Use this order:

1. Source and time: Who supplied the information, how, and when?
2. Material fact: What happened, and what is observed rather than assumed?
3. Issue: Which coverage, liability, value, privacy, authority, or recovery question remains?
4. Evidence: What supports the current view, and what is missing or conflicting?
5. Action: What was requested, preserved, communicated, or completed?
6. Authority: Who instructed, approved, or must review the action?
7. Follow-up: What is the diary date, owner, and next decision?

Never silently overwrite a material mistake. Correct it transparently so the chronology and reason for correction remain reviewable.

Property and commercial loss checks

• Identify building, contents, stock, equipment, tenant improvements, additional living expense, business income, and extra expense separately.
• Establish cause, origin, duration, extent, occupancy, use, ownership, and prior damage.
• Separate emergency mitigation from permanent repair.
• Reconcile photographs, inspection, estimates, invoices, and expert opinions.
• Identify upgrades, unrelated work, depreciation, betterment, deductible, limits, and proof issues.
• Preserve damaged items and cause evidence before repair, disposal, demolition, or salvage action.
• Consider contractor, tenant, manufacturer, neighbour, utility, or other recovery targets.

Automobile and transportation checks

• Confirm vehicle, owner, driver, permission, use, location, policy, endorsement, and other insurance.
• Separate physical damage, liability, accident benefits, bodily injury, uninsured automobile, and recovery issues.
• Compare statements, police information, witness evidence, scene facts, and damage patterns.
• Check repair scope, prior damage, actual cash value, betterment, deductible, lienholder, storage, salvage, and release.
• Avoid admission, final repair commitment, or settlement promise without authority and evidence.

Liability and bodily injury checks

• Identify allegation, duty, breach, causation, damage, occurrence, insured status, and policy issue.
• Preserve scene, witness, contract, product, premises, and expert evidence.
• Obtain medical or employment information only with proper purpose and authority.
• Distinguish treatment evidence, causation, pre-existing conditions, income loss, and future loss.
• Confirm coverage, liability, damages, authority, release, lien, contribution, and recovery before supporting settlement.

Immediate escalation cues

Escalate while continuing permitted urgent work when the file involves:

• serious injury, fatality, major loss, vulnerable parties, or catastrophe volume;
• uncertain or disputed coverage that may lead to reservation or denial;
• litigation, represented parties, limitation concerns, or legal interpretation;
• suspected fraud, payment diversion, invoice manipulation, or duplicate payment;
• privacy breach, conflict, complaint, inaccurate communication, or potential E&O exposure;
• authority beyond Level 2, unclear supervision, or a missing approval/countersignature control;
• expert, engineering, medical, accounting, environmental, or specialist evidence;
• settlement, release, recovery, or disposal steps that could prejudice rights.

One-line answer test

Before choosing an option, complete this sentence:

Because [decisive fact] leaves [issue] unresolved, the Level 2 adjuster should [permitted next action], document [evidence and instruction], and obtain [required review or approval].

If the sentence cannot be completed from the facts, the answer probably assumes too much.

What this review is for

Use this page before mixed AIC Adjuster Level 2 practice when you need to refresh the decisions behind the questions. It is an independent Finance Prep review of licensing readiness and supervised claims work.

AIC presents Adjuster Level 2 as a licence class, not as a separate Level 2 exam. The official route and this practice bank solve different problems: AIC defines qualification and supervision requirements; Finance Prep lets you practise applying claims concepts without implying that you hold authority you do not have.

Official Level 2 facts to keep separate

Verify the current requirements with AIC. The current official Adjuster licence page identifies these elements for the Level 2 route:

The Level 2 claims model

For most scenarios, work through five questions in order:

1. Authority: What is the Level 2 adjuster allowed to investigate, document, recommend, or communicate, and what requires Level 3 or insurer direction?
2. Issue: Is the unresolved question about coverage, liability, damages, valuation, evidence, privacy, payment, recovery, or conduct?
3. Evidence: What fact or document would make the recommendation supportable?
4. Action: What is the best next step that preserves the claim, the insurer’s position, and the claimant’s fair treatment?
5. Record: What must the file note show, and who must review or approve the result?

The strongest answer usually advances the file without pretending uncertainty has disappeared.

High-yield practice map

Five distinctions that control many answers

Coverage is not valuation

Coverage asks whether and how policy wording responds. Valuation asks how much a covered loss is worth. A repair estimate can help measure damage without deciding whether the damage is covered.

Liability is not coverage

A claimant may allege that the insured is responsible, but liability still requires factual investigation. The policy response is a related but separate question.

A red flag is not proof

Inconsistent timing, unusual invoices, or conflicting statements justify objective investigation and escalation. They do not justify an unsupported accusation or automatic denial.

A recommendation is not approval

A Level 2 adjuster can develop and document a recommendation. Final coverage, payment, settlement, or report authority may remain with Level 3, the insurer, or another authorized decision-maker.

A file note is not a conclusion label

Good notes show source, date, fact, unresolved issue, action, authority, instruction, and follow-up. Labels such as “fraud,” “liable,” or “covered” are weak when the evidence and reasoning are missing.

Last-pass file checklist

Before selecting a final answer, ask:

• Is the policy, claimant, insured, vehicle, property, or business correctly identified?
• Is the decisive fact known, missing, or disputed?
• Does the proposed action preserve evidence and recovery rights?
• Does it protect confidential or medical information?
• Is the communication factual without promising coverage, payment, or liability?
• Is the action within Level 2 authority?
• Does the file need Level 3 approval, countersignature, insurer instruction, legal input, or specialist evidence?
• Is there a clear diary date and next step?

Finance Prep’s 810-question bank is most useful when every miss becomes a corrected decision rule. Drill the weak area, explain the closest distractor, and then test the same judgment in an unseen mixed scenario.

Put the review into practice