CAIB 1 Practice
Examination
Comprehensive Questions
(Frequently Tested) with
Verified Answers Graded
A+
[Document subtitle]
[DATE]
[COMPANY NAME]
[Company address]
, Contact for further consultation
1. A Deductible Answer: A Deductible represents the amount the insured is required to absorb for
each loss for which insurance coverage is provided before receiving any payment from the insurer.
2. Pure Risk Answer: Pure risk is a type of risk that involves the chance of loss only; there is no
opportunity for gain; it is insurable.
3. Endorsement Answer: An Endorsement is an extra sheet(s) or slip(s) of paper attached to the
policy indicating in writing that the insurer and the insured have agreed to a change in the terms of the
insurance contract.
4. Civil Law Answer: Civil Law is the branch of law that is concerned with settling disputes between
individuals or other legal entities in matter not involving a criminal act
5. Unidentifiable Automobile Answer: is one which causes bodily injury or death to an insured
person arising out of one actual contact with the automobile in vehicle the insured is an occupant, the identity of
either owner or driver of the vehicle cannot e ascertained
6. Your client filed for proof of loss 15 days ago. In this case how much
time does the insurer have remaining before the claim must be paid?
Answer: The loss is payable within 60 days after completion of the roof loss, unless the contract
provides a shorter period. In this case, as the proof of loss was filed 15 days ago, the claim must be paid within 45
days.
7. Guaranteed replacement cost Answer: The insurer agrees to pay the full costs of repairs or
replacements of the dwelling even if it is more the amount of the insurance purchased.
8. is the guarantee of the insurer would extend to include the
payment of additional costs to rebuild in compliance with an
existing by-law regulating rebuilding after a loss? Answer: NO - any additional
costs to comply with building by-law are not insured.
9. what obligation does the insured have to the insurer when
improvements, extensions, or additions have been made to the
dwelling building? Answer: when any changes are made to the dwelling building, the insured
must notify the insurer within 90 days of the start work.
10. whose responsible to insure the following property item
Answer: the building, unit improvements and betterments, the
common elements, contents contained in each condominium unit? Answer:
the building - the condominium corporation
2/6
Examination
Comprehensive Questions
(Frequently Tested) with
Verified Answers Graded
A+
[Document subtitle]
[DATE]
[COMPANY NAME]
[Company address]
, Contact for further consultation
1. A Deductible Answer: A Deductible represents the amount the insured is required to absorb for
each loss for which insurance coverage is provided before receiving any payment from the insurer.
2. Pure Risk Answer: Pure risk is a type of risk that involves the chance of loss only; there is no
opportunity for gain; it is insurable.
3. Endorsement Answer: An Endorsement is an extra sheet(s) or slip(s) of paper attached to the
policy indicating in writing that the insurer and the insured have agreed to a change in the terms of the
insurance contract.
4. Civil Law Answer: Civil Law is the branch of law that is concerned with settling disputes between
individuals or other legal entities in matter not involving a criminal act
5. Unidentifiable Automobile Answer: is one which causes bodily injury or death to an insured
person arising out of one actual contact with the automobile in vehicle the insured is an occupant, the identity of
either owner or driver of the vehicle cannot e ascertained
6. Your client filed for proof of loss 15 days ago. In this case how much
time does the insurer have remaining before the claim must be paid?
Answer: The loss is payable within 60 days after completion of the roof loss, unless the contract
provides a shorter period. In this case, as the proof of loss was filed 15 days ago, the claim must be paid within 45
days.
7. Guaranteed replacement cost Answer: The insurer agrees to pay the full costs of repairs or
replacements of the dwelling even if it is more the amount of the insurance purchased.
8. is the guarantee of the insurer would extend to include the
payment of additional costs to rebuild in compliance with an
existing by-law regulating rebuilding after a loss? Answer: NO - any additional
costs to comply with building by-law are not insured.
9. what obligation does the insured have to the insurer when
improvements, extensions, or additions have been made to the
dwelling building? Answer: when any changes are made to the dwelling building, the insured
must notify the insurer within 90 days of the start work.
10. whose responsible to insure the following property item
Answer: the building, unit improvements and betterments, the
common elements, contents contained in each condominium unit? Answer:
the building - the condominium corporation
2/6
