CAIB 2 CERTIFICATION EVALUATION
QUESTIONS AND SOLUTIONS STUDY GUIDE
●● 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 expense of Insured by a tenant
●● Actual Cash Value
Answer: Repair or replace lost or damaged property less the depreciation
●● Reinsurance
Answer: Passing off or "ceding" part of the risk assumed to one or more
reinsurers
●● Subscription Policy
, Answer: A type of policy where a group of insurers agree to share in
providing coverage.
●● Condition
Answer: Something imposed upon an Insured under the policy that
requires them to do or not do something. Can be statutory, policy, other
or additional.
●● Subrogation
Answer: The right of the Insurer to "step into the shoes" or assume the
rights of the party who has been compensated. Can sue who the original
party could have sued.
●● Warranty
Answer: A promise that certain facts are true and will remain so
●● Material Fact
Answer: A fact which communicated to the Insurer, would cause reason
to either decline insurance or charge a higher premium
●● Fraudulent
Answer: To act willfully and with specific intent to deceive or cheat for
the purpose of causing financial loss to another or financial gain to ones
self
QUESTIONS AND SOLUTIONS STUDY GUIDE
●● 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 expense of Insured by a tenant
●● Actual Cash Value
Answer: Repair or replace lost or damaged property less the depreciation
●● Reinsurance
Answer: Passing off or "ceding" part of the risk assumed to one or more
reinsurers
●● Subscription Policy
, Answer: A type of policy where a group of insurers agree to share in
providing coverage.
●● Condition
Answer: Something imposed upon an Insured under the policy that
requires them to do or not do something. Can be statutory, policy, other
or additional.
●● Subrogation
Answer: The right of the Insurer to "step into the shoes" or assume the
rights of the party who has been compensated. Can sue who the original
party could have sued.
●● Warranty
Answer: A promise that certain facts are true and will remain so
●● Material Fact
Answer: A fact which communicated to the Insurer, would cause reason
to either decline insurance or charge a higher premium
●● Fraudulent
Answer: To act willfully and with specific intent to deceive or cheat for
the purpose of causing financial loss to another or financial gain to ones
self
