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CAIB 2 Practice Exam best rating
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CAIB 2 Practice Exam 11282019 best ratingWaivers 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 which are considered catastrophic, Earthquake, snow slides, landslides
3. more specialized policy forms exist - Auto, aircraft
Commercial property policies may provide coverage from theft while property is
an automobiles. What warranty will be included in commercial property policies
when theft coverage is provided for property in automobiles? - 1. Vehicle
containing the property insured be equipped with a fully enclosed body or
compartment
2. The doors are securely locked and the widow closed
3. Access or entry to the vehicle mu have been gained through the use of force
Statutory Conditions or Commercial Property conditions Policy conditions. What
are 3 additional conditions contained in a number of commercial property for and
,CAIB 2 Practice Exam 11282019 best rating
explain the effect of each? - 1. Pair and Set - the undamaged property still has
value will be deducted from claim payment
2. No benefit to Bailee - bailee must take care of the property of the other with
ordinary Care
3. Sue and Labour - insured must take all reasonable action to recover stolen
property
Identify three things that a Survey does? - 1. Assist in identification of losses or
exposures
2. Helps to determine the coverages needed
3. Develops other underwriting information need by the insurer.
What benefits would a checklist have in relation to the survey? - 1. Alerts broker
to possible losses or exposures
2. Ensures that needed coverages are not forgotten or ignored
3. Helps to reduce the potential for errors and omissions claim
Identify the two types of depreciation used in the Formula/Cost approach and
give an example for each: - Straight line depreciation - is based on the number of
years something could have reasonably been expected to function. A building that
is 30 year old but can be used for another 30 years is 50% depreciated.
, CAIB 2 Practice Exam 11282019 best rating
Plateau accelerated depreciation- A property which is mostly productive in its
early years. The greats depreciation will happen in the first few years. Once that
certain age is reached the depreciation plateaus, example office equipment
When is the Income Approach method most commonly employed? - When a run
down building is used for a business which is making a profit.
The net annual rental income is determined and a capitalization factor applied to
it to produce actual cash value amount.
Identify three reasons why a Subscription Policy may be used: - 1. The line of
business is so specialized as to not be covered the insurer's treaty with its
reinsurers
2. They type of risk is on which the insurer does not want to expose to reinsurance
treaties
3. The limits do not exceed the insurer's net retention limits but are beyond what
it is prepared to pay in a single claim
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