Caib 2 Study guides, Class notes & Summaries

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CAIB 2 - Chapter 1 Questions and Answers Rated A+ The three amounts to be considered when calculating the amount of payment as outlined in the Indemnity Agreement are: 1) the value of the lost or damaged property (ACV) 2) the interest of the insured in the property (ex. financial interest, home, mortgage) 3) the amount of insurance specified on the "Declarations Page" for the loss or damaged property (least amount|) Identify the four categories that buildings may fall into: Re...

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

The three amounts to be considered when calculating the amount of payment as outlined in the Indemnity Agreement are: - ANSWER1) the value of the lost or damaged property (ACV) 2) the interest of the insured in the property (ex. financial interest, home, mortgage) 3) the amount of insurance specified on the "Declarations Page" for the loss or damaged property (least amount|) Identify the four categories that buildings may fall into: - ANSWERResidential (ex. home) Non-mercantile (ex. ...

Identify the company which assumes the greatest portion of an account? (Ch. 1) - ANSWERLead company What is "reinsurance" (Ch. 1) - ANSWERReinsurance is when an insurance company "cedes" part of the risk to a reinsurer. What are three considerations used when determining amounts of indemnity? (ch 1) - ANSWER1. Actual cash value of property as it existed immediately prior to loss. 2. The interest of the insured in the property. 3. The amount of insurance as shown on the policy. Why d...

CAIB 2 Questions with complete solution 2024 Your client, a retail fashion store, has just rented a business premises in a mall. Before opening your business, she plans to install new wall to wall carpeting and install wall paneling. These values would be insured under the amount provided for: A. Stock B. Equipment C. Building D. Business Interruption - correct answer B. Equipment While the law permits the insurer to surrogate against the party responsible for the loss, the insurer a...

CAIB 2 Question and answers correctly solved 2024Identify 3 classes of property insured by commercial property insurance policies - correct answer Building, Equipment, Stock Identify 2 ways used to insure commercial property and a brief explanation of each - correct answer Scheduled coverage: only that property specifically identified or scheduled on the policy is insured All Property (formerly POED) a single limit of insurance is provided for building, stock, and equipment. Schedul...

Scheduled Coverage Refer to policy on which coverage is provided only on that property which is specifically identified or scheduled Property of Every Description Refers to policy used to insure buildings, stock and equipment under a single limit of insurance All Property (Blanket) A policy which under all property owned by the insured is covered or "blanketed" by a single limit of insurance Tenant Improvement Building improvement, alteration and betterment made at the expense of or pur...