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Free AIT Practice Questions

10 free, exam-style Associate in Information Technology (AIT) practice questions with answers and explanations. No signup required. Work through them below, then take the full free AIT practice test to study every exam domain.

The AIT exam has 50 questions and runs 1 hour 5 minutes.

These 10 free AIT questions are organized by exam domain, so you can see how each part of the Associate in Information Technology blueprint is tested. Reveal the answer and explanation under each question.

Domain 1: ACRM 401: Effectively Managing Cyber Risk

Question 1

A bakery owns its building and also worries that a customer could slip on a wet floor and sue. Analyzing the slip-and-fall concern specifically, this represents which type of loss exposure?

  1. A property loss exposure, arising from damage to the owned premises
  2. A net income loss exposure, from revenue lost while the bakery is closed
  3. A liability loss exposure, arising from a claim brought by a third party
  4. A personnel loss exposure, arising from the employee who mopped the floor
Show answer & explanation

Correct answer: C - A liability loss exposure, arising from a claim brought by a third party

Question 2

An insurer's team evaluates a submitted application, decides whether to accept the risk, and sets the price and policy terms. Which function of the insurance value chain does this describe?

  1. Underwriting
  2. Claims
  3. Distribution
  4. Loss control
Show answer & explanation

Correct answer: A - Underwriting

Question 3

Shortly after a new claim is reported, the claims representative establishes a reserve. What is the PRIMARY purpose of setting this reserve?

  1. To reward the policyholder for having reported the covered loss promptly
  2. To estimate the amount the insurer expects to ultimately pay on the claim
  3. To set aside protected funds that the claimant is not permitted to access
  4. To decide whether the claim should be denied for late notice of the loss
Show answer & explanation

Correct answer: B - To estimate the amount the insurer expects to ultimately pay on the claim

Question 4

An insurer notices that its cheapest, most lenient policies are attracting a disproportionate number of high-risk applicants. This tendency for higher-risk insureds to seek coverage more than lower-risk insureds is BEST described as:

  1. Moral hazard
  2. Morale (attitudinal) hazard
  3. Catastrophic exposure
  4. Adverse selection
Show answer & explanation

Correct answer: D - Adverse selection

Question 5

A warehouse employee injures their back lifting inventory during a shift. Which line of commercial insurance is designed to respond to this employee injury?

  1. Commercial general liability
  2. Commercial property
  3. Workers compensation
  4. Commercial auto
Show answer & explanation

Correct answer: C - Workers compensation

Question 6

A five-year-old laptop is destroyed in a covered fire. Under a policy that pays actual cash value (ACV) rather than replacement cost, the insured should expect a payment based on:

  1. The full cost to purchase a brand-new equivalent laptop at today's prices
  2. The replacement cost reduced by depreciation for the laptop's age and wear
  3. The original price the insured paid for the laptop five years ago
  4. The higher of the original purchase price or the current market value
Show answer & explanation

Correct answer: B - The replacement cost reduced by depreciation for the laptop's age and wear

Domain 2: AIDA 401: Using Data Analytics to Strengthen the Insurance Value Chain

Question 7

An analyst is categorizing data sources. Which of the following is the BEST example of UNSTRUCTURED data?

  1. A spreadsheet listing each policy number and its premium amount
  2. A database table of claimants that can be sorted by date of loss
  3. The free-text narrative an adjuster typed into a claim file
  4. A dedicated field capturing each policyholder's five-digit ZIP code
Show answer & explanation

Correct answer: C - The free-text narrative an adjuster typed into a claim file

Question 8

An insurer enriches its risk models by purchasing weather and credit information gathered by outside organizations. From the insurer's perspective, this is an example of:

  1. Transactional data
  2. Internal data
  3. External data
  4. Unstructured data
Show answer & explanation

Correct answer: C - External data

Question 9

A data team wants to segment policyholders into natural groups based on similarity, but there are NO predefined labels telling the model which group each policyholder belongs to. Which technique is MOST appropriate?

  1. Classification, which sorts records into already-defined, labeled categories
  2. Cluster analysis, which groups similar records without predefined labels
  3. Regression, which predicts a numeric outcome value from input variables
  4. Association rule learning, which finds items that tend to occur together
Show answer & explanation

Correct answer: B - Cluster analysis, which groups similar records without predefined labels

Question 10

An actuary wants a model that predicts the expected DOLLAR amount of loss for a policy based on several input variables. Which analytical technique is designed for predicting a continuous numeric value?

  1. Cluster analysis
  2. Classification
  3. Regression analysis
  4. Association rule learning
Show answer & explanation

Correct answer: C - Regression analysis

The rest of the AIT blueprint

The AIT exam also covers these domains. Drill them in the full free practice test:

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