CAIB 2 Study guides, Class notes & Summaries

CAIB 2 Mock Midterm Exam – Questions & Answers

CAIB 2 Exam – Questions & Verified Answers

CAIB 2 -Terms and Definitions Questions and Answers Scheduled Coverage - Answer- refers to policy on which coverage is provided only on that property which is specifically identified or scheduled All Property - Answer- refers to policy used to insure building, equipment and stock under a single limit of Insurance Tenants Improvement - Answer- building improvements, alteration and betterments made at expense of or purchased by the insured to a building occupied by the insured and which ar...

CAIB 2 - Chapter 1 Questions and Answers 100% Pass The three amounts to be considered when calculating the amount of payment as outlined in the Indemnity Agreement are: - Answer- 1) the value of the lost or damaged property (ACV) 2) the interest of the insured in the property (ex. financial interest, home, mortgage) 3) the amount of insurance specified on the "Declarations Page" for the loss or damaged property (least amount|) Identify the four categories that buildings may fall into: -...

CAIB 2 - Chapter 1 Questions and Answers 100% Pass Explain "Scheduled Basis" - Answer- Only the items listed on the policy will be insured Explain "Property of Every Description" Basis - Answer- Building, stock and equipment are insured under a single limit of insurance Explain "All Property (Blanket)" Basis - Answer- All property owned by the insured is insured under a single limit of insurance - this can include property at different locations and may be subject to co insurance I...

CAIB 2 Chapter 1 Practice exam 1 Questions and Answers 100% Pass Explain what it means to issue insurance on a scheduled basis - Answer- Only the property listed or scheduled on the policy is insured Explain what is meant to issue insurance on the basis of Property of Every Description - Answer- Building, stock and equipment are insured under a single limit of insurance Explain what it means to issue insurance on an all property (blanket) basis - Answer- All property owned by the insured ...

CAIB 2 - Chapter 7 Questions and Answers 100% Correct 4 sources of business interruption & provide an example of each - Answer- 1) physical damage to business; fire destroys business 2) failure of public utilities; ice storm damages power lines 3) transportation related accidents; rail car derailment 4) physical damage to neighbouring premises; anchor store burns down 3 sources of funding available to businesses when their operations are interrupted - Answer- 1) reduce their capital reser...

CAIB 2 STUDY NOTES; CHAPTER 4 Questions and Answers 100% Pass Breifly explain the fuctions or endorsements, riders, and separate policies - Answer- 1. Endorsements; changes the terms or conditions of the insureds policy 2. Riders; adds additional coverage to those already in place 3. Separate policies; equipment breakdown insurance, computer crime, other specialized coverages often purchased separately but can be added to existing policy Identify the endorsement, rider or policy to respon...

CAIB 2 Practice Exam Questions and Answers 100% Correct Waivers of Co-insurance clause are common on commercial property policies. What types of losses are applicable to this waiver of co-insurance? Is less than $5000 or Is less than 2% of the amount of insurance. (72,00 x 2%=1440) Identify 3 reasons why exclusions exist on commercial property policy. losses which are generally considered by insurers to be commercially insurable: 1. Deliberate acts of violence -war, rebellion 2. losses w...

CAIB 2 Chapter 1 Practice exam 1 Questions and Answers 100% Pass Explain what it means to issue insurance on a scheduled basis - Answer- Only the property listed or scheduled on the policy is insured Explain what is meant to issue insurance on the basis of Property of Every Description - Answer- Building, stock and equipment are insured under a single limit of insurance Explain what it means to issue insurance on an all property (blanket) basis - Answer- All property owned by the insured ...

CAIB 2 - Chapter 6 Exam Questions and Answers 100% Correct 3 Considerations that make some property items "Target Items" and provide an explanation for each - Answer- 1) Convertibility; the ease at which property can be sold and converted to cash 2) Value; higher valued articles are more attractive to thieves 3) Portability; the ease at which property can be transported 4 methods used by thieves which may cause loss to insured property & provide an example - Answer- 1) Forceable entry i...

CAIB 2- Chapter 3 Questions and Answers 100% Pass identify the three leading causes of fires in canada - Answer- -failure or malfunction of mechanical or electrical equipment -arson, suspected arson and other set fires -misuse of source of ignition Identify what information is required by law to appear on all insurance policies - Answer- names of parties to the contract policy periodloss payable or payee summary of insurance coverage rate and premium charged subject matter of insura...