CAIB 1 Chapters 5-8
Comprehensive Questions
(Frequently Tested) with
Verified Answers Graded
A+
[Document subtitle]
[DATE]
[COMPANY NAME]
[Company address]
, Contact for further consultation
1. Identify the coverages usually required to be purchased in order to
qualify for insurance under farm package policy Answer: - Dwelling building
and personal property
-major outbuildings in contents
-machinery and equipment
-general liability
2. Outline the coverage provided for fire department charges when
insurance is purchased for farm outbuildings Answer: - the farm policy covers fire
department charges the insured may be assessed if neighbouring urban and rule fire
departments are called to assist in putting out a farm fire
-Minimal amount included ranges from $500-$2500 with increased coverage for an additional premium
3. Explain the provisions applicable to the "loss of use extension"
provided for for farm machinery Answer: Reimburses the insured for expenses incurred in
the rental of a substitute machine in order to complete work already underway. Coverage is provided
only with machinery insured is being repaired due to damage from an insured.
4. What types of farm employees are insured under the liability
coverages provided by firm policies? Answer: - Residence employees whose duties are
, Contact for further consultation
exclusively in connection with the maintenance or use of the residence premises
-Farm employees who are paid to perform farm activities outside the insureds dwelling or who are
engaged on behalf of the insured for no pay in a neighbours exchange of assistance
5. Outline the extent of the coverage provided for owned and non-
owned
recreational motor vehicles by the policy Answer: The basic policy provides
coverage for the operation of non-owned recreational motor vehicles on and ott the insured
premises.
There is no coverage for owned recreational motor vehicles, other than golf carts when used on the golf
course, ott the insured premises
6. Why should farmers purchase employers liability coverage Answer:
Because "farm employees"
are not subject to Worker's Compensation and may sue their employer for injuries they receive on the job
7. Explain why you would recommend that farmers also purchase a
voluntary compensation (employers' liability) rider Answer: Employees can be
injured or killed in an accident through no fault of the insured. In such cases there would be no
recourse against the insured under the employers' liability rider. Voluntary compensation (employers'
liability) rider provides the farm employee or their family with some compensation
, Contact for further consultation
8. FARM COVERAGES replacement cost coverage
Portable steel granaries having wood floors. age Answer: 2 years
Answer: Not covered
9. FARM COVERAGES replacement cost coverage
Farm machinery storage shed constructed of metal; concrete
foundation. age Answer: new Answer: Covered
10. FARM COVERAGES replacement cost coverage
Farm workshop constructed of frame; concrete foundation. aged
Answer: 20 years Answer: Not covered
11. FARM COVERAGES replacement cost coverage
Would granaries on concrete foundation. age Answer: 5 to 25 years Answer:
Covered- All granaries less than 15 years
Not covered all granaries more than 15 years
12. Financial responsibility laws have been enacted in all provinces
explain the purpose of these laws Answer: Financial responsibility laws require that all
motorist purchase automobile insurance up to a certain minimum dollar limit. This helps to ensure that
the society is not left to pay the cost of restoring property damage, rehabilitating accident victims and
Comprehensive Questions
(Frequently Tested) with
Verified Answers Graded
A+
[Document subtitle]
[DATE]
[COMPANY NAME]
[Company address]
, Contact for further consultation
1. Identify the coverages usually required to be purchased in order to
qualify for insurance under farm package policy Answer: - Dwelling building
and personal property
-major outbuildings in contents
-machinery and equipment
-general liability
2. Outline the coverage provided for fire department charges when
insurance is purchased for farm outbuildings Answer: - the farm policy covers fire
department charges the insured may be assessed if neighbouring urban and rule fire
departments are called to assist in putting out a farm fire
-Minimal amount included ranges from $500-$2500 with increased coverage for an additional premium
3. Explain the provisions applicable to the "loss of use extension"
provided for for farm machinery Answer: Reimburses the insured for expenses incurred in
the rental of a substitute machine in order to complete work already underway. Coverage is provided
only with machinery insured is being repaired due to damage from an insured.
4. What types of farm employees are insured under the liability
coverages provided by firm policies? Answer: - Residence employees whose duties are
, Contact for further consultation
exclusively in connection with the maintenance or use of the residence premises
-Farm employees who are paid to perform farm activities outside the insureds dwelling or who are
engaged on behalf of the insured for no pay in a neighbours exchange of assistance
5. Outline the extent of the coverage provided for owned and non-
owned
recreational motor vehicles by the policy Answer: The basic policy provides
coverage for the operation of non-owned recreational motor vehicles on and ott the insured
premises.
There is no coverage for owned recreational motor vehicles, other than golf carts when used on the golf
course, ott the insured premises
6. Why should farmers purchase employers liability coverage Answer:
Because "farm employees"
are not subject to Worker's Compensation and may sue their employer for injuries they receive on the job
7. Explain why you would recommend that farmers also purchase a
voluntary compensation (employers' liability) rider Answer: Employees can be
injured or killed in an accident through no fault of the insured. In such cases there would be no
recourse against the insured under the employers' liability rider. Voluntary compensation (employers'
liability) rider provides the farm employee or their family with some compensation
, Contact for further consultation
8. FARM COVERAGES replacement cost coverage
Portable steel granaries having wood floors. age Answer: 2 years
Answer: Not covered
9. FARM COVERAGES replacement cost coverage
Farm machinery storage shed constructed of metal; concrete
foundation. age Answer: new Answer: Covered
10. FARM COVERAGES replacement cost coverage
Farm workshop constructed of frame; concrete foundation. aged
Answer: 20 years Answer: Not covered
11. FARM COVERAGES replacement cost coverage
Would granaries on concrete foundation. age Answer: 5 to 25 years Answer:
Covered- All granaries less than 15 years
Not covered all granaries more than 15 years
12. Financial responsibility laws have been enacted in all provinces
explain the purpose of these laws Answer: Financial responsibility laws require that all
motorist purchase automobile insurance up to a certain minimum dollar limit. This helps to ensure that
the society is not left to pay the cost of restoring property damage, rehabilitating accident victims and
