Caib 1 exam questions - Study guides, Class notes & Summaries

CAIB 1 Practice Exam Questions and Answers All Correct Insurers are in the business of assuming the financial risks of others which involves entering into a formal contract. A contract is enforceable at law only when all legal elements have been observed. Insurance contracts differ from other formal agreements and are subject to what three additional elements? - Answer-Insurable Interest Utmost Good Faith Indemnity Explain the meaning and disadvantage of the following approaches: Avoi...

CAIB 3 Practice Exam Questions With Verified & Correct Answers 2024|2025 What is the name given to the collection of written decisions? Correct Answer: Case Law Explain the concept of the Rule of Precedent. Correct Answer: Current court decisions must follow those made in cases having similar circumstances, which allows the development of a logical body of general principles against which specific cases to be compared. Explain the meaning of the term "damages". Correct Answer: Compensat...

CAIB 4 Exam Questions with Correct Answers What are the two approaches to planning? Explain each - Answer-1) Top Down Planning - Management provides the mission, strategies, and objectives for the brokerage 2) Bottom Up Planning - Management provides the mission and broad strategies. Leaves the objectives, goals and activities to business units. What are the advantages and disadvantages of top down planning? - Answer-Advantages: Management feels in control and in charge of decision makin...

CAIB 1 Exam Questions And Answers CAIB 1 Exam Questions And Answers Define "Insurable Interest" - ANS must be able to show that they'd be hurt financially from a loss Define "Utmost Good Faith" - ANS complete and total honesty of all parties - a higher degree of honesty Define "Indemnity" - ANS ensures people receive the actual amount of their loss, no more and no less Define "Void" - ANS to have never existed Define "Voidable" - ANS wronged party may...

CAIB 1 Chapter 1 Exam Questions And Answers Define in pure insurance terms ``risk." - ANS The chance of financial loss to which an object of insurance is exposed. List the three categories of risk generally faced by people. - ANS Personal - loss of health/life Property - objects Liability - negligent actions result in injury/damage State 4 possible options people can choose to deal with risk and give a brief explanation and example of each. - ANS Avoidance - all chance of fin...

CAIB 1 Exam Questions and Answers 100% Verified Risk - Answer- the chance of financial loss to which an object of insurance is exposed Speculative Risk - Answer- possibility of financial loss or gain Pure Risk - Answer- Chance of financial loss, no gain Insurance - Answer- undertaking by one person to indemnify another person against loss or liability for loss in respect of a certain risk or peril to which the object of insurance may be exposed or to pay a sum of money or other ting of val...

CAIB 1 Exam Questions with Correct Answers Risk - Answer-Chance of financial loss to which an object of insurance is exposed. Speculative Risk - Answer-The chance of a financial loss or gain. Pure Risk - Answer-The chance of financial loss but no chance of financial gain. Insurance - Answer-The undertaking by one person to indemnify another person against loss or liability for loss in respect of a certain risk or peril to which the object of the insurance may be exposed... or to pay a...

Practice Exam for CAIB 1 Exam Questions And Answers Insurers are in the business of assuming the financial risks of others which involves entering into a formal contract. A contract is enforceable at law only when all legal elements have been observed. Insurance contracts differ from other formal agreements and are subject to what three additional elements? - ANS Insurable Interest Utmost Good Faith Indemnity Explain the meaning and disadvantage of the following approaches: Avoidance o...

CAIB 1 EXAM Questions and Answers (2024/2025)(Verified Answers)

CAIB 1 Exam Questions and Answers 100% Verified Risk - Answer- the chance of financial loss to which an object of insurance is exposed Speculative Risk - Answer- possibility of financial loss or gain Pure Risk - Answer- Chance of financial loss, no gain Insurance - Answer- undertaking by one person to indemnify another person against loss or liability for loss in respect of a certain risk or peril to which the object of insurance may be exposed or to pay a sum of money or other ting of val...