CAIB 3 LATEST 2026 STUDY GUIDE QUESTIONS AND
ANSWERS GUARANTEE A+
✔✔Identify the Coverage Territory of the IBC 2100 - ✔✔A. Cover for losses occur only
in Canada and the United States
B. Limited world-wide coverage for products liability
C. Limited world-wide coverage for other business activities
D. "Personal and advertising injury" offences that take place through the Internet or
similar electronic means of communication
✔✔Identify where suit for any products liability claims must be brought - ✔✔Within
Canada or the United States
✔✔Does the insurer need to defend an action for which coverage is provided by the
policy even if the allegations are groundless false or fraudulent? - ✔✔Yes
✔✔Does the insurers right and duty to defend end when coverage limits have been
expended to pay the claim - ✔✔Yes
✔✔Can the insurer settle any claim or action at its discretion - ✔✔Yes
✔✔Bodily injury or property damage expected or intended from the insureds standpoint
is excluded except in a very specific instance. Identify the specific instance where
intentionally caused injury or damage would be covered - ✔✔When bodily injury results
from the use of reasonable force to protect persons or property
✔✔Although there is generally no coverage under the policy for damages assumed by
the insured under contract or agreement, there are however certain types of day to day
business contracts that are incidental to the affairs of an insurer and consequently are
covered. Identify such contracts automatically insured - ✔✔1. A lease of premises
2. A sidetrack agreement
3. An easement or license agreement in connection with vehicle or pedestrian private
railroad crossings at grade
4. Any other easement agreement
5. And indemnification of a municipality as required by ordinance except in connection
with work for municipality
6. An elevator maintenance agreement
✔✔Are these contacts required to be in writing - ✔✔No
✔✔Will the policy respond to pay any premiums that the insured failed to pay for
workers compensation plans or similar - ✔✔No
, ✔✔Will the policy generally respond to pay for injuries to employees who are injured in
the course of employment - ✔✔No
✔✔There are instances when Worker's Compensation will not respond for injured
employees. Identify when the policy will provide contingent employers liability coverage
- ✔✔1. To liability assumed by the insured under an insured contract
2. To employees on whose behalf contributions are made by or required to be made by
the insured under the provisions of any Worker's Compensation law
✔✔Identify the two possible solutions for employers whose employees do not
automatically fall under the Workers Compensation Act - ✔✔1. Purchase Employer's
Liability coverage
2. Enrol all employees under the provincial worker's compensation plan
✔✔Define automobile - ✔✔The land motor vehicle, trailer or semitrailer that is required
by law to be insured under a contract evidence by a motor vehicle liability policy or any
vehicle insured under such contract including any attached machinery or equipment
✔✔What automobiles causing third-party damage would be covered under the IBC
2100 - ✔✔1. Forklift used on the insureds premises
2. Damage to house when struck by the bucket of a front end loader while excavating at
the site
✔✔Identify two instances when there would be coverage for watercraft on the IBC 2100
- ✔✔1. Any watercraft while ashore on premises you owned or rented
2. Non-owned watercraft that is less than 8 m (26 feet) long and which is not being used
to carry persons or property for a charge
✔✔Explain how the broad form completed operations endorsement would change your
answer to what is covered or not - ✔✔The broad form completed operations
endorsement excludes coverage only for that particular part of the insured work
responsible for the loss and not all of it
✔✔Does personal and advertising injury respond to claims alleging bodily injury - ✔✔No
✔✔Identify the five coverages provided under personal and advertising injury - ✔✔1.
False arrest, detention or imprisonment
2. Malicious prosecution
3. Wrongful entry into or eviction of a person from a room, dwelling or premises that the
person occupies
4. Oral or written publication of that slanders or libels a persons or organizations goods,
products or services
5. Oral or written publication of material that violates a person's right of privacy
ANSWERS GUARANTEE A+
✔✔Identify the Coverage Territory of the IBC 2100 - ✔✔A. Cover for losses occur only
in Canada and the United States
B. Limited world-wide coverage for products liability
C. Limited world-wide coverage for other business activities
D. "Personal and advertising injury" offences that take place through the Internet or
similar electronic means of communication
✔✔Identify where suit for any products liability claims must be brought - ✔✔Within
Canada or the United States
✔✔Does the insurer need to defend an action for which coverage is provided by the
policy even if the allegations are groundless false or fraudulent? - ✔✔Yes
✔✔Does the insurers right and duty to defend end when coverage limits have been
expended to pay the claim - ✔✔Yes
✔✔Can the insurer settle any claim or action at its discretion - ✔✔Yes
✔✔Bodily injury or property damage expected or intended from the insureds standpoint
is excluded except in a very specific instance. Identify the specific instance where
intentionally caused injury or damage would be covered - ✔✔When bodily injury results
from the use of reasonable force to protect persons or property
✔✔Although there is generally no coverage under the policy for damages assumed by
the insured under contract or agreement, there are however certain types of day to day
business contracts that are incidental to the affairs of an insurer and consequently are
covered. Identify such contracts automatically insured - ✔✔1. A lease of premises
2. A sidetrack agreement
3. An easement or license agreement in connection with vehicle or pedestrian private
railroad crossings at grade
4. Any other easement agreement
5. And indemnification of a municipality as required by ordinance except in connection
with work for municipality
6. An elevator maintenance agreement
✔✔Are these contacts required to be in writing - ✔✔No
✔✔Will the policy respond to pay any premiums that the insured failed to pay for
workers compensation plans or similar - ✔✔No
, ✔✔Will the policy generally respond to pay for injuries to employees who are injured in
the course of employment - ✔✔No
✔✔There are instances when Worker's Compensation will not respond for injured
employees. Identify when the policy will provide contingent employers liability coverage
- ✔✔1. To liability assumed by the insured under an insured contract
2. To employees on whose behalf contributions are made by or required to be made by
the insured under the provisions of any Worker's Compensation law
✔✔Identify the two possible solutions for employers whose employees do not
automatically fall under the Workers Compensation Act - ✔✔1. Purchase Employer's
Liability coverage
2. Enrol all employees under the provincial worker's compensation plan
✔✔Define automobile - ✔✔The land motor vehicle, trailer or semitrailer that is required
by law to be insured under a contract evidence by a motor vehicle liability policy or any
vehicle insured under such contract including any attached machinery or equipment
✔✔What automobiles causing third-party damage would be covered under the IBC
2100 - ✔✔1. Forklift used on the insureds premises
2. Damage to house when struck by the bucket of a front end loader while excavating at
the site
✔✔Identify two instances when there would be coverage for watercraft on the IBC 2100
- ✔✔1. Any watercraft while ashore on premises you owned or rented
2. Non-owned watercraft that is less than 8 m (26 feet) long and which is not being used
to carry persons or property for a charge
✔✔Explain how the broad form completed operations endorsement would change your
answer to what is covered or not - ✔✔The broad form completed operations
endorsement excludes coverage only for that particular part of the insured work
responsible for the loss and not all of it
✔✔Does personal and advertising injury respond to claims alleging bodily injury - ✔✔No
✔✔Identify the five coverages provided under personal and advertising injury - ✔✔1.
False arrest, detention or imprisonment
2. Malicious prosecution
3. Wrongful entry into or eviction of a person from a room, dwelling or premises that the
person occupies
4. Oral or written publication of that slanders or libels a persons or organizations goods,
products or services
5. Oral or written publication of material that violates a person's right of privacy
