Caib exam stuvia - Study guides, Class notes & Summaries

1. Is perceived as being too technical 2. Reluctance of insured to reveal earnings 3. Lack of consumer knowledge - CORRECT ANSWER-Identify three reasons or obstacles to selling business interruption instance 1. Physical damage to property 2. Failure or breakdown of public utilities 3. Transportation related accidents 4. Physical damage to neighbouring premises 5. Loss caused to property of major supplier or costumer 6. Actions of regulatory authorities 7. Ancillary cause (strikes, l...

An application and a submission are not the same thing. Identify three items that a submission may include: - CORRECT ANSWER--an application -additional verbal information -additional written information, including previous policy premium, loss history and details of loses, financial statements, photographs Identify five steps of the broker's role in the underwriting process: - CORRECT ANSWER--completion of survey -search for interested insurer -meet with client, discuss quotes and s...

A proposal for insurance that's presented to the underwriter for consideration. It can include an application, and additional verbal and written information (i.e., previous policy premium, loss details and history, financial statements and photos). - ANSWER-"Submission." 1) Assists to identify loss exposures; 2) Helps eliminate purchase of coverage that isn't needed; 3) Assists in development of underwriting information the insurer needs. - ANSWER-Three purposes of survey forms. 1) A...

Identify the company which assumes the greatest portion of an account - ANSWER-Lead Company What is re-insurance - ANSWER-an insurance company 'ceding' part of the risk to a re-insurer What are three considerations used when determining amounts of indemnity? - ANSWER-i) Actual Cash Value of the property as it existed immediately prior to the loss ii) The interest of the insured in the property iii) The amount of insurance as shown on the policy i) Actual Cash Value of the property a...

1) Failure or malfunction of mechanical or electrical equipment; 2) Arson; 3) Misuse of ignition source. - CORRECT ANSWER-The three leading causes of fire losses in Canada. Policy period takes effect at 12:01 a.m. standard time at the address of the Named Insured as stated on the policy. - CORRECT ANSWER-The policy-period start that's applicable to most commercial property policies. The insurer is liable to that party, meaning that it may have to pay the claim twice. - CORRECT ANSWER-Th...

replacement value -ANSWER- Cost to repair, replace or rebuild the lost or damaged property without deduction for depreciation Scheduled Coverage -ANSWER- Coverage for property specifically identified or scheduled on the insurance policy All Property -ANSWER- All property owned by Insured is covered by a single limit of insurance. Subject to 90% co-insurance. (Building, stock and equipment) Tenant's Improvements -ANSWER- Building improvements, alterations and betterment's made at the e...

the company which assumes the greatest portion of an account - ANSWERLead Company What is re-insurance - ANSWERan insurance company 'ceding' part of the risk to a re-insurer What are three considerations used when determining amounts of indemnity? - ANSWERi) Actual Cash Value of the property as it existed immediately prior to the loss ii) The interest of the insured in the property iii) The amount of insurance as shown on the policy i) Actual Cash Value of the property as it existed...

warranty - ANSWER-A promise that certain facts are as they are represented to be and that they will remain so hazard - ANSWER-A condition which may cause a peril to occur Latent defect - ANSWER-A hidden or concealed defect, which cannot be discovered by reasonable and customary inspection Endorsement - ANSWER-Changes the terms or conditions of the insured's policy Messenger - ANSWER-The insured or a partner of the insured or any employee who is duly authorized by the insured to have...

Explain what it means to issue insurance on a scheduled basis - ANSWEROnly the property listed or scheduled on the policy is insured Explain what is meant to issue insurance on the basis of Property of Every Description - ANSWERBuilding, stock and equipment are insured under a single limit of insurance Explain what it means to issue insurance on an all property (blanket) basis - ANSWERAll property owned by the insured is insured under a single limit of insurance. All property blanket may i...

Scheduled Coverage - ANSWER-Refers to policy on which coverage is provided only on that property which is specifically identified or scheduled Property of Every Description - ANSWER-Refers to policy used to insure building, stock, and equipment under a single limit of insurance All Property (Blanket) - ANSWER-A policy under which all property owned by the insured is covered or blanketed by a single limit of insurance Tenants Improvements - ANSWER-Building improvements, alterations and b...