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

Identify the company which assumes the greatest portion of an account? (Ch. 1) - CORRECT ANSWER-Lead company What is "reinsurance" (Ch. 1) - CORRECT ANSWER-Reinsurance 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) - CORRECT ANSWER-1. 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 sh...

ANSWER- The three amounts to be considered when calculating the amount of payment as outlined in the Indemnity Agreement are: ANSWER- 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: ANSWER- Residential (ex. home) Non-merc...

1. Residential (homes) 2. Mercantile (hospital) 3. Non-mercantile (stores) 4. Manufacturing/industrial (manufacturing plants) - ANSWERIdentify 4 categories that buildings may fall into and give an example of each 1. Scheduled basis 2. All property basis - ANSWERIdentify two bases that coverage can be provided 1. Scheduled basis - only property which is specifically identified or scheduled on the policy is insured 2. All property - All property owned by the insured is covered by a sin...

1) Convertibility; 2) Value; 3) Portability. -ANSWER- Three factors of personal property that can help business owners determine loss potential from a criminal act. 1) Forced entry into building; 2) Forced entry into protected enclosures; 3) Unforced entry into building or protected enclosures; 4) Forced opening of building and protected enclosures; 5) Vandalism and mailicious acts; 6) Espionage; 7) Shoplifting; 8) Employee theft. -ANSWER- Methods criminals use that can result in los...

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...

1) Convertibility; 2) Value; 3) Portability. - CORRECT ANSWER-Three factors of personal property that can help business owners determine loss potential from a criminal act. 1) Forced entry into building; 2) Forced entry into protected enclosures; 3) Unforced entry into building or protected enclosures; 4) Forced opening of building and protected enclosures; 5) Vandalism and mailicious acts; 6) Espionage; 7) Shoplifting; 8) Employee theft. - CORRECT ANSWER-Methods criminals use that c...

Only the property specifically listed or scheduled on the policy is insured. - CORRECT ANSWER-Scheduled coverage. Building, Stock and Equipment are insured under a single limit of insurance. - CORRECT 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.) - CORRECT ANSWER-All Property (Blanket) coverage. 1) Building 2) Equipment 3) Stock. - CORR...

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...

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...

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...