CAIB 3 FINAL EXAMINATION 2024 WITH 100% CORRECT ANSWERS

Define the following insurance terms. Bill of Lading correct answersDocuments issued by carriers responsible for transporting or forwarding goods Constructive Total Loss (MARINE INSURANCE) correct answersOccurs when the cost of salvaging the cargo is too high relative to the value saved Working Capital correct answersAmounts of funds available to pay continuing business operating expenses until payment is received for work being undertaken by the contractor Penalty (SURETY BOND) correct answersAmount of credit given to the principal by the surety or the amount which the surety is prepared to pay in the event the principal should default Going Concern Value correct answersDifference in the value of property which must be sold after a loss and its value had the business continued Question #2 All of the following statements in regards to the coverages provided under Coverage A. Bodily Injury and Property Damage Liability (Commercial General Liability Policy) are true, except one. Pick the Exception. a) Coverage provided only for such sums as the insured is legally obligated to pay as damages. b) Insurer has both a right and duty to defend the insured. c) Coverage is provided only for losses which occur during the policy period. d) Only those losses which occur in Canada and the United States of America(including its territories and possessions) are insured. correct answersd) Only those losses which occur in Canada and the United States of America(including its territories and possessions) are insured. Question #3 Peter's Perogie and Pizza Den, Inc. does almost one-half of its business from take-out orders. High school and university students handle most of the deliveries. They supply their own vehicles and are paid $2.25