CAIB 2 STUDY NOTES CHAPTER 3 Exam Questions & Answers 100% Accurate Graded A+
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Module
CAIB 2 STUDY NOTES CHAPTER 3
Institution
CAIB 2 STUDY NOTES CHAPTER 3
Identify three leading causes of fires in Canada - CORRECT ANSWER-1. Arson or suspected arson
2. Failure or malfunction of mechanical or electrical equipment
3. Misuse of source of ignition
Identify what information is requied by law to apper on all insurance polcies - CORRECT ANSWER-1. Name...
CAIB 2 STUDY NOTES CHAPTER 3
Exam Questions & Answers 100%
Accurate Graded A+
Identify three leading causes of fires in Canada - CORRECT ANSWER-1. Arson or
suspected arson
2. Failure or malfunction of mechanical or electrical equipment
3. Misuse of source of ignition
Identify what information is requied by law to apper on all insurance polcies -
CORRECT ANSWER-1. Name of parties to the contract
2. Policy period
3. Loss payable of payee
4. Summary of insurance coverages and amounts for which insurer may be liability
5. Rate and premium charged
6. Subject matter of insurance
Identify the policy period shown in the declarations page - CORRECT ANSWER-
Commencing at 12:01 am local time at the insureds address
What could happen if an insurer paid the entire amount of a claim to the client when a
loss payable was indicated on the policy - CORRECT ANSWER-The insured is liable to
that party and would be called upon to pay the claim twice
How could your answer differ in if the loss payable was not indicated on the policy -
CORRECT ANSWER-There would be no obligation on the insurer to indemnify the
payee
The IFC 10010 is designed to meet the requirements of the insurance acts of the
common law province. Identify the three perils to be included by law in any contract of
fire insurance - CORRECT ANSWER-1. Fire
, 2. Lightning
3. Explosion of natural, coal or manufactured gas
Does the peril of lightning under this form cover direct losses to electrical appliances -
CORRECT ANSWER-Yes
Identify the losses that insureds are not liable for by law - CORRECT ANSWER-1. Loss
or damage to electrical devices, applicants, or wiring caused by artificially generated
electrical current (power surges, brown outs)
2. Loss or damage by process, involving application of heat
3. Caused by war, invasion, foreign enemy, hostilities, civil war etc.
Would bankrupt most insurers - uninsurable
Trade losses are not required to be insured by law. Identify three types of businesses
that may suffer a trade loss - CORRECT ANSWER-1. Bakeries
2. Laundries
3. Garages
Certain property losses are not required to be insured by law. Identify four groups of
property included - CORRECT ANSWER-1. Money, bullion, platinum and other precious
metals, alloys, securities, stamps, tickets, tokens, evidence of debt or title (higher
exposure to loss)
2. Automobiles, aircraft, watercraft etc; Does not apply to watercraft held for sale or
unlicensed auto and trailers when used in business and on premises forklift
3. Property at locations to which the the insured are vacant, unoccupied or shut-down
for more than 30 consecutive days
4. Loss directly or indirectly by enforcement of any by-law, etc. Which makes it
impossible to reinstate as it was prior to loss "bylaws exclusion"
Compare the definitions of vacant and unoccupied - CORRECT ANSWER-Vacant;
normal occupant is absent and contents have been removed
Unoccupied; premises are complete with contents, which normal occupant is
temporarily away
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