CAIB 2 -Terms and Definitions Questions & Answers(RATED A+)
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Course
CAIB 2 -T
Institution
CAIB 2 -T
Scheduled Coverage - ANSWERrefers to policy on which coverage is provided only on that property which is specifically identified or scheduled
All Property - ANSWERrefers to policy used to insure building, equipment and stock under a single limit of Insurance
Tenants Improvement - ANSWERbuildi...
CAIB 2 -Terms and Definitions
Questions & Answers(RATED
A+)
Scheduled Coverage - ANSWERrefers to policy on which coverage is provided only on that property
which is specifically identified or scheduled
All Property - ANSWERrefers to policy used to insure building, equipment and stock under a single
limit of Insurance
Tenants Improvement - ANSWERbuilding improvements, alteration and betterments made at
expense of or purchased by the insured to a building occupied by the insured and which are not
otherwise insured, provided the insured is not actual owner of such building
Actual Cash Value - ANSWERthe replacement or repair cost less depreciation
Replacement Value - ANSWERrepresents the costs to repair, replace or rebuild the lost or damaged
property without deduction for depreciation
Reinsurance - ANSWERinvolves an insurer to cede part of the risk it has assumed to one or more
other insurer
Subscription - ANSWERan insurance policy under which a group of insurers has agreed to participate
in providing policy insurance coverages
Condition - ANSWERis something that imposed by the insurer that requires the insured to do or not
to do something
Subrogation - ANSWERrefers to the right of the insurer to "step into the shoes" of the party whom it
has compensated and sue any party whom the compensated party could have sued
, Warranty - ANSWERis a promise that the certain facts are as they are represented to be and that
they will remain so.
Material Fact - ANSWERa fact which if communicated to the Insurer would effect it ether to decline
the insurance all together, or not accept it unless higher premium is paid
Fraudulent - ANSWERto act wilfully and with specific intent to deceive or cheat
Void contract - ANSWERis the one which has no "legal or binding force" and as such , "is incapable of
being enforced by law"
Common Hazards - ANSWERconditions common to all building which influence their potential for
loss
Detachment - ANSWERrefers to the proximity of the building insured or containing the property
insured to other commercially rated buildings
Adverse Selection - ANSWERoccurs when the applicants for insurance are largely those most likely to
suffer a loss
Risk Classification - ANSWERrefers to the grouping or classifying of risks according to established
criteria, which in large part, is based on their probability for loss as a class
Soft Market - ANSWERcharacterized by intense competition between insurers. As a result, rates tend
to be low
Hard Market - ANSWERoccurs when low profits margins force out of the competition, as a result,
insurers use a more disciplined underwriting approach which gives to the insured little or nothing in
the way of rate discounts
Hazard - ANSWERis a condition which may cause a peril to occur
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