CAIB 2: Mock Midterm Exam With Complete Solutions Rated A+
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CAIB 2: Mock
Institution
CAIB 2: Mock
What is the insurer entitled to do when misrepresentation has been shown or has contributed to the loss - CORRECT ANSWER-The insurer is entitled to void the policy
What is the major single cause of fire and one of the leading caused of death in Canada: - CORRECT ANSWER-Mechanical or electrical f...
what is the insurer entitled to do when misreprese
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CAIB 2: Mock
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CAIB 2: Mock Midterm Exam With
Complete Solutions Rated A+
What is the insurer entitled to do when misrepresentation has been shown or has
contributed to the loss - CORRECT ANSWER-The insurer is entitled to void the policy
What is the major single cause of fire and one of the leading caused of death in
Canada: - CORRECT ANSWER-Mechanical or electrical failure of equipment
What is the exception to the coverage provided for in the peril of Impact by Aircraft,
Spacecraft and Land Vehicle under the Fire and EC form insures: - CORRECT
ANSWER-Damage to insured's building caused by delivery van driven by an employee
of the insured
Identify 2 underwriting conditions that must be satisfied by the insured before the insurer
will agree to replace the standard Co-insurance clause with the Stated Amount Co-
Insurance Clause: - CORRECT ANSWER-1) insured must submit statement of values
indicating values of property insured as verified by an appraisal or other method of
valuation acceptable to the insurer
2) These values must be maintained throughout the term of the policy
Identify 5 hazards common to most commercial risks: - CORRECT ANSWER-Heating
Occupancy
Protection
Electrical Services
Detachment
A client of your brokerage is receiving a rate credit for their automatic extinguishing and
burglary protection system. You have advised this client that the policy insured by the
insurer contains a condition which specifically outlines certain obligations of insureds in
respect to such property protection systems. Identify 2 obligations placed on the insured
by this policy condition: - CORRECT ANSWER-1)Insured must report immediately any
interruption, flaw or defect coming to their knowledge of any property protection system;
, 2Insured must report immediately any cancellation or non-renewal of any monitoring to
maintenance contract of any property protection system
Identify 2 approaches used by insurers to insure all of a business' property under a
single limit of insurance: - CORRECT ANSWER-1) Property of Every Description
2) All Property (Blanket) basis
Is a photocopier (leased) insured under equipment? - CORRECT ANSWER-Yes
Is a gas furnace used to heat buildings insured under stock? - CORRECT ANSWER-No
- it is insured under building
Are advertising brochures insured under stock? - CORRECT ANSWER-Yes
Are growing plants used for sale to the public insured under equipment? - CORRECT
ANSWER-No - they are insured under stock
According to the Insurance Act, when does coverage take effect? - CORRECT
ANSWER-12:01 standard time at the address of insured
What change can insurers make to their application to help eliminate the problem of
when the policy period takes effect? - CORRECT ANSWER-They can include on their
forms a space for brokers to indicate the time the application was completed and
coverage bound
Under the fire policy, is a fire loss to 200 dinner buns while being baked in the insureds
oven covered? - CORRECT ANSWER-no, it is not covered
Would fire damage to insureds building by persons rioting in the streets be covered? -
CORRECT ANSWER-No, it is not covered
Would fire loss to the building by careless handling of smoking materials be covered? -
CORRECT ANSWER-Yes, it is covered
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