AIIM Certified Aviation Insurance Broker CAIB
Exam
**Question 1.** Which type of hull insurance provides coverage for both ground and in‑flight
perils?
A) Ground Risk Only
B) Flight Risk Only
C) Combined Ground‑and‑Flight Hull
D) Passenger Legal Liability
Answer: C
Explanation: Combined Ground‑and‑Flight Hull insurance protects the aircraft against loss or
damage while on the ground and while operating in the air, covering the full spectrum of hull
exposures.
**Question 2.** In an aviation hull policy, a “total loss” provision typically pays:
A) The market value of the aircraft at the time of loss
B) The insured value minus the deductible
C) The full insured amount regardless of salvage value
D) Only the cost of repairs up to the deductible
Answer: C
Explanation: A total loss provision obligates the insurer to pay the full insured amount, even if
the aircraft can be salvaged, because the loss is deemed total.
**Question 3.** A “partial loss” clause in a hull policy is primarily designed to:
A) Limit liability for passenger injuries
B) Cover repair costs up to a specified percentage of the insured value
C) Exclude war and hijacking perils
D) Provide coverage for loss of use only
Answer: B
, AIIM Certified Aviation Insurance Broker CAIB
Exam
Explanation: Partial loss coverage allows the insurer to pay for repair costs up to a certain
percentage of the insured value, reflecting the extent of damage.
**Question 4.** The purpose of a deductible in an aviation hull policy is to:
A) Increase the insurer’s exposure
B) Reduce the premium by shifting a portion of risk to the insured
C) Cover the cost of salvage
D) Eliminate the need for a loss runs analysis
Answer: B
Explanation: A deductible requires the insured to bear a defined amount of loss before
insurance responds, thereby lowering the insurer’s risk and the premium.
**Question 5.** “Participation clauses” in hull insurance typically refer to:
A) The insured’s share of loss after deductible
B) The proportion of loss the insurer pays when multiple insurers are involved
C) The percentage of premiums allocated to loss prevention programs
D) The portion of loss covered for war perils
Answer: B
Explanation: Participation clauses dictate how losses are shared among multiple insurers when a
policy is placed on a slip.
**Question 6.** Passenger Legal Liability (PLL) coverage is intended to protect against:
A) Damage to the aircraft’s hull
B) Third‑party property damage on the ground
C) Bodily injury claims brought by passengers
D) Loss of use of the aircraft after a crash
, AIIM Certified Aviation Insurance Broker CAIB
Exam
Answer: C
Explanation: PLL provides protection for the aircraft operator against legal liability for passenger
injuries arising from the operation of the aircraft.
**Question 7.** Which of the following best describes “Third‑Party Liability” (excluding
passengers) in aviation insurance?
A) Coverage for damage to the aircraft’s engines only
B) Liability for bodily injury or property damage to non‑passengers caused by the aircraft
C) Coverage for the aircraft owner’s personal belongings
D) Protection against loss of revenue due to flight cancellations
Answer: B
Explanation: Third‑Party Liability covers legal responsibility for injuries or property damage to
persons or property other than passengers.
**Question 8.** A “Combined Single Limit” (CSL) policy differs from a “Split Limits” policy in
that:
A) CSL provides separate limits for each type of loss
B) CSL offers one aggregate limit that can be applied to any covered loss type
C) CSL excludes passenger liability coverage
D) CSL requires higher deductibles for hull losses
Answer: B
Explanation: A CSL gives a single aggregate limit that the insured can allocate among various
loss types, whereas split limits assign distinct caps to each coverage category.
**Question 9.** Hangar Keepers Liability insurance primarily covers:
A) Damage to aircraft while in flight
B) Liability for bodily injury to hangar employees
, AIIM Certified Aviation Insurance Broker CAIB
Exam
C) Property damage to aircraft stored in a hangar caused by the hangar keeper’s negligence
D. Loss of use of the aircraft due to a hangar fire
Answer: C
Explanation: Hangar Keepers Liability protects the hangar operator for damage to aircraft under
its care, custody, or control caused by negligence.
**Question 10.** Product liability coverage for aircraft manufacturers typically includes
protection for:
A) Hull damage caused by bird strikes
B) Legal claims arising from design or manufacturing defects in the aircraft or components
C) Loss of revenue due to airline strikes
D. Pilot error during flight operations
Answer: B
Explanation: Product liability for manufacturers covers claims that the aircraft or its parts were
defective in design, manufacturing, or labeling.
**Question 11.** Airport Premises Liability insurance is designed to protect the airport owner
against:
A) Damage to aircraft while airborne
B) Claims for bodily injury or property damage occurring on airport property
C) Loss of aircraft hull due to fire on the runway
D. Passenger legal liability for airline passengers
Answer: B
Explanation: This coverage addresses liability for injuries or property loss that occur on airport
premises, such as slip‑and‑fall incidents.
Exam
**Question 1.** Which type of hull insurance provides coverage for both ground and in‑flight
perils?
A) Ground Risk Only
B) Flight Risk Only
C) Combined Ground‑and‑Flight Hull
D) Passenger Legal Liability
Answer: C
Explanation: Combined Ground‑and‑Flight Hull insurance protects the aircraft against loss or
damage while on the ground and while operating in the air, covering the full spectrum of hull
exposures.
**Question 2.** In an aviation hull policy, a “total loss” provision typically pays:
A) The market value of the aircraft at the time of loss
B) The insured value minus the deductible
C) The full insured amount regardless of salvage value
D) Only the cost of repairs up to the deductible
Answer: C
Explanation: A total loss provision obligates the insurer to pay the full insured amount, even if
the aircraft can be salvaged, because the loss is deemed total.
**Question 3.** A “partial loss” clause in a hull policy is primarily designed to:
A) Limit liability for passenger injuries
B) Cover repair costs up to a specified percentage of the insured value
C) Exclude war and hijacking perils
D) Provide coverage for loss of use only
Answer: B
, AIIM Certified Aviation Insurance Broker CAIB
Exam
Explanation: Partial loss coverage allows the insurer to pay for repair costs up to a certain
percentage of the insured value, reflecting the extent of damage.
**Question 4.** The purpose of a deductible in an aviation hull policy is to:
A) Increase the insurer’s exposure
B) Reduce the premium by shifting a portion of risk to the insured
C) Cover the cost of salvage
D) Eliminate the need for a loss runs analysis
Answer: B
Explanation: A deductible requires the insured to bear a defined amount of loss before
insurance responds, thereby lowering the insurer’s risk and the premium.
**Question 5.** “Participation clauses” in hull insurance typically refer to:
A) The insured’s share of loss after deductible
B) The proportion of loss the insurer pays when multiple insurers are involved
C) The percentage of premiums allocated to loss prevention programs
D) The portion of loss covered for war perils
Answer: B
Explanation: Participation clauses dictate how losses are shared among multiple insurers when a
policy is placed on a slip.
**Question 6.** Passenger Legal Liability (PLL) coverage is intended to protect against:
A) Damage to the aircraft’s hull
B) Third‑party property damage on the ground
C) Bodily injury claims brought by passengers
D) Loss of use of the aircraft after a crash
, AIIM Certified Aviation Insurance Broker CAIB
Exam
Answer: C
Explanation: PLL provides protection for the aircraft operator against legal liability for passenger
injuries arising from the operation of the aircraft.
**Question 7.** Which of the following best describes “Third‑Party Liability” (excluding
passengers) in aviation insurance?
A) Coverage for damage to the aircraft’s engines only
B) Liability for bodily injury or property damage to non‑passengers caused by the aircraft
C) Coverage for the aircraft owner’s personal belongings
D) Protection against loss of revenue due to flight cancellations
Answer: B
Explanation: Third‑Party Liability covers legal responsibility for injuries or property damage to
persons or property other than passengers.
**Question 8.** A “Combined Single Limit” (CSL) policy differs from a “Split Limits” policy in
that:
A) CSL provides separate limits for each type of loss
B) CSL offers one aggregate limit that can be applied to any covered loss type
C) CSL excludes passenger liability coverage
D) CSL requires higher deductibles for hull losses
Answer: B
Explanation: A CSL gives a single aggregate limit that the insured can allocate among various
loss types, whereas split limits assign distinct caps to each coverage category.
**Question 9.** Hangar Keepers Liability insurance primarily covers:
A) Damage to aircraft while in flight
B) Liability for bodily injury to hangar employees
, AIIM Certified Aviation Insurance Broker CAIB
Exam
C) Property damage to aircraft stored in a hangar caused by the hangar keeper’s negligence
D. Loss of use of the aircraft due to a hangar fire
Answer: C
Explanation: Hangar Keepers Liability protects the hangar operator for damage to aircraft under
its care, custody, or control caused by negligence.
**Question 10.** Product liability coverage for aircraft manufacturers typically includes
protection for:
A) Hull damage caused by bird strikes
B) Legal claims arising from design or manufacturing defects in the aircraft or components
C) Loss of revenue due to airline strikes
D. Pilot error during flight operations
Answer: B
Explanation: Product liability for manufacturers covers claims that the aircraft or its parts were
defective in design, manufacturing, or labeling.
**Question 11.** Airport Premises Liability insurance is designed to protect the airport owner
against:
A) Damage to aircraft while airborne
B) Claims for bodily injury or property damage occurring on airport property
C) Loss of aircraft hull due to fire on the runway
D. Passenger legal liability for airline passengers
Answer: B
Explanation: This coverage addresses liability for injuries or property loss that occur on airport
premises, such as slip‑and‑fall incidents.
