CAIB 2 ACTUAL COMPREHENSIVE EXAM QUESTIONS AND
ANSWERS GUARANTEE A+
✔✔Accommodation business - ✔✔business which is marginal or substandard but which
the insurer agrees to accept as a favour or accommodation to the broker.
✔✔Supporting business - ✔✔the existence of other insurance policies the applicant has
with the same insurer.
✔✔Vacant - ✔✔empty"; or - when the normal occupant is absent and the contents have
been removed.
✔✔Unoccupied - ✔✔lack of habitual presence of human beings; or - when premises are
complete with its contents, except that such person who normally occupies the
premises is temporarily away.
✔✔Loading - ✔✔an additional rate charged over and above the fire rate
✔✔Centrifugal force - ✔✔the inertia of a body that tends to move it away from the
centre around which it revolves.
✔✔mechanical breakdown - ✔✔"a failure in the working mechanism of the
machinery...a functional defect in the moving parts of the equipment which causes the
latter to cease functioning or to function improperly.
✔✔Electrical breakdown - ✔✔a failure in the electrical mechanism of the machinery,
appliance or device.
✔✔Trade losses - ✔✔the types of losses which might be expected as a part of the
every day operation of a business.
✔✔Wear & tear - ✔✔"...deterioration or depreciation (i.e. value by ordinary and
reasonable use of the subject matter.)
✔✔Gradual deterioration - ✔✔the deterioration of an object which arises naturally over
time.
✔✔Latent defect - ✔✔a hidden or concealed defect. One which could not be discovered
by reasonable and customary inspection; one not apparent in face of goods, product,
document, etc.
✔✔Mysterious Disappearance - ✔✔disappearance under circumstances which cannot
be explained
, ✔✔Endorsement - ✔✔changes the terms or conditions of the policy
✔✔Rider - ✔✔adds additional coverages to those already in place
✔✔Media - ✔✔is CDs, DVDs, backup hard drives and cassettes, upon which data is
recorded.
✔✔Data - ✔✔the information stored on the media
✔✔Temporary Location - ✔✔a location not specified on the policy which is not owned,
rented or controlled in whole or in part by the insured
✔✔Newly Acquired Location - ✔✔a location acquired (owned, rented or controlled) by
the Insured. Such location is a newly acquired location for a period of 30 days from
acquisition.
✔✔Replacement cost - ✔✔the cost of repairing or replacing the property on the same
site with new property of like kind and quality and for like occupancy without deduction
for depreciation.
✔✔Bailee for hire - ✔✔is one who has temporary custody of the personal property of
another for a purpose other than sale and who is compensated as a condition of such
custody.
✔✔Ordinary care - ✔✔the legal duty imposed upon bailees which requires them to take
the same care of the goods of others as would be taken by a prudent and diligent owner
of such goods.
✔✔Common carrier - ✔✔includes airlines, railroads, trucking companies and others that
furnish transportation to any member of the public seeking their services.
✔✔Standard (Ordinary) bill of lading - ✔✔bill of lading used to reflect the amount for
which the bill of lading common carrier will be held legally liable under the tariff.
✔✔Valued bill of lading - ✔✔serves to increase carrier's liability - normally requested by
the owner of goods when their value exceeds the value stated in the Standard Bill of
Lading.
✔✔Released bill of lading - ✔✔bill of lading used to release a carrier from any liability
for the goods being transported.
✔✔Contract carrier - ✔✔one that carries, for pay, the goods of certain customers only
as contrasted to a common carrier that carries the goods of the public in general.
ANSWERS GUARANTEE A+
✔✔Accommodation business - ✔✔business which is marginal or substandard but which
the insurer agrees to accept as a favour or accommodation to the broker.
✔✔Supporting business - ✔✔the existence of other insurance policies the applicant has
with the same insurer.
✔✔Vacant - ✔✔empty"; or - when the normal occupant is absent and the contents have
been removed.
✔✔Unoccupied - ✔✔lack of habitual presence of human beings; or - when premises are
complete with its contents, except that such person who normally occupies the
premises is temporarily away.
✔✔Loading - ✔✔an additional rate charged over and above the fire rate
✔✔Centrifugal force - ✔✔the inertia of a body that tends to move it away from the
centre around which it revolves.
✔✔mechanical breakdown - ✔✔"a failure in the working mechanism of the
machinery...a functional defect in the moving parts of the equipment which causes the
latter to cease functioning or to function improperly.
✔✔Electrical breakdown - ✔✔a failure in the electrical mechanism of the machinery,
appliance or device.
✔✔Trade losses - ✔✔the types of losses which might be expected as a part of the
every day operation of a business.
✔✔Wear & tear - ✔✔"...deterioration or depreciation (i.e. value by ordinary and
reasonable use of the subject matter.)
✔✔Gradual deterioration - ✔✔the deterioration of an object which arises naturally over
time.
✔✔Latent defect - ✔✔a hidden or concealed defect. One which could not be discovered
by reasonable and customary inspection; one not apparent in face of goods, product,
document, etc.
✔✔Mysterious Disappearance - ✔✔disappearance under circumstances which cannot
be explained
, ✔✔Endorsement - ✔✔changes the terms or conditions of the policy
✔✔Rider - ✔✔adds additional coverages to those already in place
✔✔Media - ✔✔is CDs, DVDs, backup hard drives and cassettes, upon which data is
recorded.
✔✔Data - ✔✔the information stored on the media
✔✔Temporary Location - ✔✔a location not specified on the policy which is not owned,
rented or controlled in whole or in part by the insured
✔✔Newly Acquired Location - ✔✔a location acquired (owned, rented or controlled) by
the Insured. Such location is a newly acquired location for a period of 30 days from
acquisition.
✔✔Replacement cost - ✔✔the cost of repairing or replacing the property on the same
site with new property of like kind and quality and for like occupancy without deduction
for depreciation.
✔✔Bailee for hire - ✔✔is one who has temporary custody of the personal property of
another for a purpose other than sale and who is compensated as a condition of such
custody.
✔✔Ordinary care - ✔✔the legal duty imposed upon bailees which requires them to take
the same care of the goods of others as would be taken by a prudent and diligent owner
of such goods.
✔✔Common carrier - ✔✔includes airlines, railroads, trucking companies and others that
furnish transportation to any member of the public seeking their services.
✔✔Standard (Ordinary) bill of lading - ✔✔bill of lading used to reflect the amount for
which the bill of lading common carrier will be held legally liable under the tariff.
✔✔Valued bill of lading - ✔✔serves to increase carrier's liability - normally requested by
the owner of goods when their value exceeds the value stated in the Standard Bill of
Lading.
✔✔Released bill of lading - ✔✔bill of lading used to release a carrier from any liability
for the goods being transported.
✔✔Contract carrier - ✔✔one that carries, for pay, the goods of certain customers only
as contrasted to a common carrier that carries the goods of the public in general.
