CAIB 2 – CHAPTER 1 EXAM WITH CORRECT
ACTUAL QUESTIONS AND CORRECTLY
WELL DEFINED ANSWERS LATEST 2024 –
2025 ALREADY GRADED A+
An insurance policy under which a group of insurers has agreed to participate
together to provide coverage. - ANSWERS-"Subscription Policy."
1) The line of business is so specialized that it isn't covered by reinsurance;
2) The type of risk is one that the insurer doesn't want to expose to its
reinsurance;
3) The limits don't exceed the insurer's risk retention limits, but are above what
it's prepared to pay for a single claim;
4) The broker wants to spread a good, large line of business among his/her
markets. - ANSWERS-The four reasons a subscription policy may be the only
insurance alternative.
, 1) Participating insurers share the premiums and the losses;
2) Each agreement is negotiated separately. - ANSWERS-The two common
characteristics of subscription policies.
The company that assumes the greatest portion of a subscription policy called. -
ANSWERS-"Lead company."
It sets the stock coverage to items that are USUAL to the insured's business. -
ANSWERS-Regarding stock coverage, why it's important to provide a proper
description of the business to the insurer.
- The lost or damaged property is similar to that insured by the policy;
- The insured was under an obligation to insure that property;
- The insured was legally liable for it. - ANSWERS-"Similar property belonging to
others" is automatically covered under the amounts of insurance for stock and
equipment if...
1) Fixed structures located on the premises;
2) Additions and extensions communicating and 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 of, and
normal repairs and minor alterations to the building, or for building services;
5) Growing plants, trees, shrubs or flowers inside the building used for decorative
purposes, when the insured owns the building. - ANSWERS-The five components
found in the definition of "building" in commercial property policies.
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