Caib 2 chapter 1 stuvia - Study guides, Class notes & Summaries

CAIB 2 - CHAPTER 1 EXAM | Questions & Answers (100% CORRECT) Only the property specifically listed or scheduled on the policy is insured. - ANSWER - Scheduled coverage. Building, Stock and Equipment are insured under a single limit of insurance. - ANSWER - Property of Every Description (POED) coverage. All property owned by the insured is covered or "blanketed" by a single limit of insurance. (May insure property at more than one location.) - ANSWER - All Property (Blanket) coverage. ...

Provide four sources of Business Interruption losses and an example of each. - CORRECT ANSWER-i) Physical damage to business example: Fire destroys business and customers cannot make purchases ii) Failure of public utilities example: Ice storm damages power lines and power cannot be restored for several weeks. This results in sales at the business to plummet iii) Transportation related accidents example: Railcar containing hazardous gas overturns causing evacuation of town. As a result, o...

Actual Cash Value - CORRECT ANSWER-replacement cost - depreciation Reinsurance - CORRECT ANSWER-An insurer cedes part of the risk to their reinsurers. Subscription Policy - CORRECT ANSWER-A group of insurers come together & agree to insure a risk Condition - CORRECT ANSWER-A requirement to do or not to do something Warranty - CORRECT ANSWER-A promise that certain material facts are true & shall remain true Material Fact - CORRECT ANSWER-A fact which if communicated to the insurer,...

Explain what it means to issue insurance on a scheduled basis - CORRECT ANSWER-Only 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 - CORRECT ANSWER-Building, stock and equipment are insured under a single limit of insurance Explain what it means to issue insurance on an all property (blanket) basis - CORRECT ANSWER-All property owned by the insured is insured under a single limit of insurance....

Define Endorsement. - ANSWERSEndorsements change terms of existing policies Define Rider. - ANSWERSRiders add coverages to those all ready on policy Indicate Covered or Not Covered on Sign Form (C/NC) a) mechanical breakdown b) damage caused by power surge c) damage caused when dropped during installation d) damage caused by freezing e) damage caused by striking employees - ANSWERSa) NC mechanical breakdown b) NC damage caused by power surge c) NC damage caused when dropped during...

Explain what it means to issue insurance on a scheduled basis - ANSWERSOnly 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 - ANSWERSBuilding, stock and equipment are insured under a single limit of insurance Explain what it means to issue insurance on an all property (blanket) basis - ANSWERSAll property owned by the insured is insured under a single limit of insurance. All property blanket ma...