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CAIB 2 Questions And Answers With Verified Solutions Already Passed!!!
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CAIB 2 Questions And Answers With Verified Solutions Already Passed!!!
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CAIB 2 Questions And Answers WithVerified Solutions Already Passed!!!
Your client, a retail fashion store, has just rented a business premises in a mall.
Before opening your business, she plans to install new wall to wall carpeting and
install wall paneling. These values would be insured under the amount provided
for:
A. Stock
B. Equipment
C. Building
D. Business Interruption - ANSWER✔✔B. Equipment
While the law permits the insurer to surrogate against the party responsible for the
loss, the insurer agrees not to exercise that right in respect to certain parties under
the policy. Which of the following parties would be surrogates agains in the event
of their responsibility?
A. insureds business partner
B. Mortgagee
C. Parents who provide financing
D. Independent contractor - ANSWER✔✔D. Independent contractor
The commercial building, equipment and stock (broad form policy) insures all of
the following except:
A. Theft or attempted theft
B. Rupture of freezing
C. Collapse
,D. Mysterious disappearance - ANSWER✔✔D. Mysterious disappearance
Under a commercial property insurance policy, which of the following would be
considered equipment?
A. Photocopier leased from ideal copiers
B. Advertising brochures promoting next months end sales
C. Customers shoes kept on premises overnight for repair
D. Shoes held on consignment - ANSWER✔✔A. Photocopier leased from ideal
copiers
The consequential loss assumption clauses is defined to insured:
A. Damage caused to refrigerator or cooling equipment
B. Damage caused by freezing due to power failure
C. Loss to stock due to loss of temperature
D. Contamination of stock due to rupture of supply piping - ANSWER✔✔C. Loss
to stock due to loss of temperature
The coverages provided by the coverages provided by the contractors equipment
floater would insured which of the following losses?
A. Damage caused to front end loader due to freezing
B. Cracking of engine block on caterpillar due to freezing
C. Fire damage to contractors plans, blueprints, design or specifications
D. Sinking of caterpillar while operating over muskeg - ANSWER✔✔A. Damage
caused to front end loader due to freezing
The safe burglary rider would insure one of the following losses:
A. Money taken from locked cash drawer
,B. Money and securities taken from an unlocked safe
C. Money and securities taken from a locked safe by the burglar who knew its
combination
D. Removal of the safe from the premises - ANSWER✔✔D. Removal of the safe
from the premises
The insurance industry relies on the classifications developed by the following
body when determining the appropriateness of the protection provided to property
by safes,vaults and other:
A. IAO
B. ULC
C. IBC
D. Canada Safety Council - ANSWER✔✔B. ULC
All of the following statements except one are true when the insureds business has
been interrupted by order of civil authority. Pick the exception:
A. Insured's building must have suffered physical damage
B. Coverage is limited to a maximum of two weeks
C. Insured is entitled to recover lost income even through there has been no actual
damage to the insured property
D. Order must have been given as a direct result of damage to neighbouring
premises by a peril insured against on the insureds own premises -
ANSWER✔✔A. Insureds business must have suffered physical damage
Accommodation business is best described as:
A. A specialized type of insurance risk which included hotels, motels, apartment
buildings and rental property
B. A risk which can be insured only under a subscription policy
, C. A risk which is substandard or marginal, but which, because of its relationship
with the broker, the insurer agrees to to underwrite
D. A risk which is normally acceptable to the insurer but which cannot be bound
by the broker without the insurers consent - ANSWER✔✔C. A risk which is
substandard or marginal, but which, because of its relationship with the broker, the
insurer agrees to underwrite
The accounts receivable form would not provide payment for:
A. Penalties charged the insured by suppliers for late payment of account
B. Sum charged by insureds accountant to reconstruct lost records
C. Sums charged by collector agency to collect amounts due to insured
D. Sums due from customers which the insured is unable to collect asa direct result
of the loss of records - ANSWER✔✔A. Penalties charged by the insured by
suppliers for late payment on the account
The coverages provided by the contractors equipment floater would insure which
of the following losses:
A. Damage caused to the front end loader due to its falling off the trailer being
used to transport it to the job site
B. Cracking of the engine block on caterpillar due to freezing
C. Fire damage to contractors plans, blueprints, designs or specs - ANSWER✔✔A.
Damage caused to the front end loader due to its falling off the trailer being used to
transport it to the job site
All of the following statements regarding commercial crime insurance policy are
true except one. Pick the exception:
A. When there is an existing policy in force, broker has the right to bind the insurer
for any interim increase in coverage limits
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