CAIB 2 Final Exam Practice Test Questions & Answers 2024 Update
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Course
CAIB 2
Institution
CAIB 2
Define Loading - ANSWERAdditional rate charged over and above the fire rate.
Define common carrier - ANSWERIncludes airline, railroads, trucking companies, and others that furnish transportation to any member of the public seeking their services.
Define "Bailee for Hire" - ANSWEROne who has t...
CAIB 2 Final Exam Practice
Test Questions & Answers
2024 Update
Define Loading - ANSWERAdditional rate charged over and above the fire rate.
Define common carrier - ANSWERIncludes airline, railroads, trucking companies, and others that
furnish transportation to any member of the public seeking their services.
Define "Bailee for Hire" - ANSWEROne who has temporary custody of the personal property of
another for a purpose other than sale and who is compensated as a condition of such custody.
Define discovery period. - ANSWERTime permitted by an insurer, commencing with the expiry date of
the policy, in which a claim must be discovered by the insured if it is to be covered by the policy.
Define contributing property - ANSWERManufacturer or supplier upon whom the insured depends
for materials or goods.
All of the following characteristics except one, are common to Boiler and Machinery policies. Pick the
exception.
A) insures objects against accidents.
B) excludes coverage for mechanical or electrical breakdown.
C) coverage is provided on a limit per accident basis.
D) insurer retains the right to suspend coverage immediately on any object judged to be in a
dangerous condition. - ANSWERB) excludes coverage for mechanical or electrical breakdown.
, All of the following statements are true when coverage is provided due to the insureds business
being interrupted by order of civil authority, except one. Pick the exception.
A) insureds building must suffer physical damage.
B) coverage is limited to a maximum of two weeks.
C) insured is entitled to recover lost income even though there has been no actual damage to
property insured under policy.
D) order must have been given as a direct result of damage to neighbouring premises by a peril
insured against under the insureds own policy. - ANSWERA) insureds building must suffer physical
damage.
How is an "occurrence" defined under an earthquake endorsement? - ANSWEROccurrence under
earthquake endorsements are defined as all earthquake shocks in any 72 hour period.
What advantage does the "occurrence" definition under earthquake have for the insured? -
ANSWEROnly one deductible will be applied to all damage caused by earthquake shocks occurring in
any 72 hour period.
Replacement cost will only be provided after the insured fulfils certain obligations under the policy.
Identify 3 things the insured must do to qualify for settlement of a building claim on a replacement
cost basis. - ANSWER1. Building must be repaired with due diligence and dispatch.
2. Building must be replaced on same or adjacent site.
3. Building replacement must actually be effected by insured not exceeding amount necessary to
replace building.
Identify 3 coverages provided by the accounts receivable form. - ANSWER1. Amounts not recoverable
due to insured loss to accounts receivable records.
2. Interest on loans to offset amounts not collectible due to insured loss to accounts receivable
records.
3. Extra collection expenses incurred like hiring of collection agencies and overtime salaries paid to
employees to attempt collection of accounts receivable.
An electronic data processing policy includes coverage for software. What two specific items are
insured within the coverage provided for software? - ANSWER1. Data.
2. Media.
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