Define "Endorsement" - CORRECT ANSWER-endorsements change the terms of existing policies
Define "Rider" - CORRECT ANSWER-Riders add coverages to those already on the policy
What values are insured on a Glass Rider - CORRECT ANSWER-1) Glass 2) Artwork on glass 3) Tape & Foil on glass
When w...
CAIB 2 - Chapter 4 Exam Questions With
Complete Solutions Rated A+
Define "Endorsement" - CORRECT ANSWER-endorsements change the terms of
existing policies
Define "Rider" - CORRECT ANSWER-Riders add coverages to those already on the
policy
What values are insured on a Glass Rider - CORRECT ANSWER-1) Glass 2) Artwork
on glass 3) Tape & Foil on glass
When would tenants require Glass Riders? - CORRECT ANSWER-tenants may require
glass riders when they have assumed responsibility for damage to glass in a lease
What type of information is required by underwriters when insuring glass on a
scheduled basis? - CORRECT ANSWER-1) type, size and number of glass units 2)
location of glass 3) information of any lettering, tape, foil or ornamentation
What are 2 factors, location wise, that may influence the premium on Glass Riders -
CORRECT ANSWER-1) Interior or exterior 2) level located on building (ie 1st or 2nd
floor)
3 Examples of loss covered by Glass Riders - CORRECT ANSWER-1) employee
breaks glass while carrying lumber into the store 2) customer breaks glass with floor
lamp they just purchased in store 3) glass breaks as a result of buildings foundation
settling
4 coverages provided by the Accounts Receivable Form and provide an example of
each - CORRECT ANSWER-1) amounts which cannot be collected due to loss of
account records; lists of clients who have an outstanding amount due 2) interest on
loans or lines of credit your client needs to utilise to pay current liabilities; money owed
to suppliers must be paid prior to settlement with insurer 3) extra costs in the collection
of accounts receivable; amounts paid to collection agencies or overtime wages to staff
, trying to collect accounts 4) expenses incurred in the reconstruction of records; client
hires accounting firm to reconstruct records
What is the requirement of insureds when accounts receivable records are not in use
and the premises are closed? - CORRECT ANSWER-accounts receivable records must
be stored in a described receptacle
2 factors that influence premiums to be charged on Accounts Receivable Forms? -
CORRECT ANSWER-1) Availability of Duplicates 2) Quality of Described Receptacle
2 factors that influence premiums to be charged on Valuable Papers and Records while
off premises - CORRECT ANSWER-1) Availability of Duplicates 2) Quality of Described
Receptacle
When can coverage be extended to insure Valuable Papers and Records while off
premises? - CORRECT ANSWER-1) when being transported outside premises 2) when
at other premises on a temporary basis
What coverage limit is available to insure Valuable Papers and Records while off
premises? - CORRECT ANSWER-10% of amount of insurance or $5000 - whichever is
less
What type of electrical disturbance is insured by Valuable Papers & Records Insurance?
- CORRECT ANSWER-When caused by lightning damage
3 Coverage sections found in EDP policies - CORRECT ANSWER-1) Loss to data
processing systems & component parts (hardware) 2) loss to date processing media &
programs (software) 3) extra expenses
2 key coverage advantages provided by Section 1 of EDP policies? - CORRECT
ANSWER-1) Broad water losses 2) Mechanical & Electrical breakdown
5 causes of mechanical & electrical breakdown insured by Electronic Data Processing
(EDP) policies - CORRECT ANSWER-1) Errors in machine programming 2) Processing
3) Short Circuits 4) Dampness or dryness of atmosphere 5) Extremes of temperature
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller remojudytask. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.49. You're not tied to anything after your purchase.
