CAIB 2 Final Exam Practice Test Questions with
Complete Solutions
The safe burglary rider would pay for the following loss:
A) money taken from a locked cash drawer.
B) money and securities taken from an unlocked safe.
C) money and securities taken from a locked safe by a burglar who knew the combination of the
safe.
D) removal of the safe from the premises D) removal of the safe from the premises
Glitters jewelry store incorporated is equipped with sophisticated burglary detection
equipment. It also subscribes to the services of an alarm control Center providing the highest
level of supervisory service today is:
A) digital communicator service
B) monitoring station service
C) emergency station service
, D) central station service. D) Central station service
All of the following statements are true when coverage is provided due to the insureds business
being interrupted by order of civil authority, except one. Pick the exception.
A) insureds building must suffer physical damage.
B) coverage is limited to a maximum of two weeks.
C) insured is entitled to recover lost income even though there has been no actual damage to
property insured under policy.
D) order must have been given as a direct result of damage to neighbouring premises by a peril
insured against under the insureds own policy. A) insureds building must suffer physical
damage.
How is an "occurrence" defined under an earthquake endorsement? Occurrence under
earthquake endorsements are defined as all earthquake shocks in any 72 hour period.
What advantage does the "occurrence" definition under earthquake have for the insured?
Only one deductible will be applied to all damage caused by earthquake shocks occurring
in any 72 hour period.
Complete Solutions
The safe burglary rider would pay for the following loss:
A) money taken from a locked cash drawer.
B) money and securities taken from an unlocked safe.
C) money and securities taken from a locked safe by a burglar who knew the combination of the
safe.
D) removal of the safe from the premises D) removal of the safe from the premises
Glitters jewelry store incorporated is equipped with sophisticated burglary detection
equipment. It also subscribes to the services of an alarm control Center providing the highest
level of supervisory service today is:
A) digital communicator service
B) monitoring station service
C) emergency station service
, D) central station service. D) Central station service
All of the following statements are true when coverage is provided due to the insureds business
being interrupted by order of civil authority, except one. Pick the exception.
A) insureds building must suffer physical damage.
B) coverage is limited to a maximum of two weeks.
C) insured is entitled to recover lost income even though there has been no actual damage to
property insured under policy.
D) order must have been given as a direct result of damage to neighbouring premises by a peril
insured against under the insureds own policy. A) insureds building must suffer physical
damage.
How is an "occurrence" defined under an earthquake endorsement? Occurrence under
earthquake endorsements are defined as all earthquake shocks in any 72 hour period.
What advantage does the "occurrence" definition under earthquake have for the insured?
Only one deductible will be applied to all damage caused by earthquake shocks occurring
in any 72 hour period.
