CAIB 2 - Chapter 1 Questions And Answers Graded A+ 2024.
Explain "Scheduled Basis" - correct answer. Only the items listed on the policy will be insured
Explain "Property of Every Description" Basis - correct answer. Building, stock and equipment are insured under a single limit o...
Explain "Scheduled Basis" - correct answer. Only the items listed on the policy will be
insured
Explain "Property of Every Description" Basis - correct answer. Building, stock and
equipment are insured under a single limit of insurance
Explain "All Property (Blanket)" Basis - correct 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
Identify 5 components found in the definition of "Building" - correct answer. 1) fixed
structures pertaining to the building 2) additions and extensions in contact with the
building 3) permanent fitting and fixtures attached to and forming part of the building 4)
materials, equipment and supplies on the premises for maintenance and normal repairs
or minor alterations 5) trees, shrubs, plants and flowers inside the building and used for
decorative purposes
Identify 3 components found in the definition of "Stock" - correct answer. 1)
merchandise of every description usual to the insureds' business 2) packing, wrapping
and advertising materials 3) similar property belonging to others which the insured is
under obligation to keep insured or for which they are legally liable for
Identify components found in the definition of "Equipment" - correct answer. 1)
generally all contents usual to the insureds business other than stock and building 2)
similar property belonging to others which the insured is under obligation to keep
insured or for which they are legally liable for 3) tenants improvements which are
defined as building improvements and are made at the expense of the insured
List 3 ways property can be valued - correct answer. 1) Actual Cash Value 2)
Replacement Value 3) Book Value
Explain the traditional meaning of "ACV" - correct answer. repair or replacement cost
of the lost or damaged property less the application of depreciation
Describe the 2 Formula/Cost Approach Methods - correct answer. Straight Line
Depreciation; applies depreciation based on normal life expectancy of buildings. Plateau
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