CAIB SOLVED QUESTIONS AND
ANSWERS
What are 2 examples of temporary locations where property
maybe located and insured by temporary location coverage? -
CORRECT ANSWER-1) When at customers premises on a
pre-sale trial basis
2) When at warehouse awaitin...
What are 2 examples of temporary locations where property
maybe located and insured by temporary location coverage? -
CORRECT ANSWER-1) When at customers premises on a
pre-sale trial basis
2) When at warehouse awaiting pickup by client
What are 3 coverages found in EDP Policies? - CORRECT
ANSWER-1) Loss to data processing systems and components
(hardware)
2) Loss to data processing media and programs (software)
3) Extra Expenses
What are 2 key coverage advantages provided by section I of
EDP Policies? - CORRECT ANSWER-1) Broad water losses
2) Mechanical & Electrical breakdown
List 5 causes of mechanical and electrical breakdown insured
by EDP Policies? - CORRECT ANSWER-1) Error in machine
programing
2) Processing
3) Short Circuit
4) Dampness or dryness or atmosphere
,5) Extremes of temperature
What limit of coverage is available to insure Valuable Papers &
Records while off premises? - CORRECT ANSWER-10% of
amount of insurance or $5000, whichever is less
What type of electrical disturbance is insured by Valuable
Papers & Records while off premises? - CORRECT ANSWER-
when it is caused by lightning
What 2 factors influence premiums to be charged on both
Accounts Receivable and Valuable Papers & Records
coverage - CORRECT ANSWER-1) Availability of duplicates
2) Quality of described receptacle
When can coverages be extended to insure Valuable Papers &
Records while off premises (2) - CORRECT ANSWER-1) When
being transported outside premises
2) When at other premises on a temporary basis
What are 4 coverages provided by accounts receivable form
and provide an example of each - CORRECT ANSWER-1)
Amounts which cannot be collected due to loss of accounts
receivable records (Ex: client doesn't remember entire list of
customers who owe)
2) Interest on loans your client needs to pay current liabilities
(Ex: supplier must be paid prior to settlement)
3) Extra costs in collection of accounts receivable (Ex: paying a
collection agencies or overtime to staff trying to collect
accounts)
4) Expenses incurred in the reconstruction of records (Ex:
hiring an accountant to reconstruct AR list)
What are 4 coverages automatically included in commercial
package policies - CORRECT ANSWER-1) Property Insurance
2) Business Interruption
3) Liability Insurance
, 4) Crime Insurance
What are 5 considerations that may result in lower premiums -
CORRECT ANSWER-1) Building constructed after 1945
2) Sprinklered
3) Alarmed
4) Sole Occupant
5) Increased deductible
List 3 provisions found in the extension for personal property of
officers and employees - CORRECT ANSWER-1) Only
applicable when the employee (The owner) does not have the
property insured or when the client is liable
2) coverage is limited to $250/employee or director
3)coverage applies at described location or any newly acquired
location
Identify 2 crime coverages provided by building damage by
theft extension - CORRECT ANSWER-1) Theft or attempt
thereat
2) Vandalism or malicious acts happening during same
occurrence
What Perils are insured by commercial Broad form policies -
CORRECT ANSWER-All risk of direct physical loss or damage
subject to policy conditions and exclusions
Identify 6 advantages of the broad form - CORRECT
ANSWER-1) theft losses to stock & equipment is insured
2) water damage from rupture of overhead water lines
3) impact of vehicles operated by insured or employees is
covered
4) many types of collapse
5) all other losses not specifically excluded
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