CAIB 2 ACTUAL EXAM PAPER 2026
QUESTIONS WITH ANSWERS GRADED A+
◉ All Property. Answer: refers to policy used to insure building, stock
and equipment under a single limit of insurance.
◉ Tenants Improvements. Answer: building improvements, alterations
and betterments made at the expense of or purchased by the insured to a
building occupied by the insured and which are not otherwise insured,
provided the insured is not the actual owner of such building
◉ Actual cash value. Answer: the replacement or repair cost less
depreciation
◉ Replacement value. Answer: represents the costs to repair, replace or
rebuild the lost or damaged property without deduction for depreciation
◉ Reinsurance. Answer: involves an Insurer ceding part of the risk it has
assumed to one or more other insurers.
◉ Subscription. Answer: an insurance policy under which a group of
Insurers has agreed to participate in providing policy insurance
coverages.
, ◉ Condition. Answer: is something imposed by the Insurer which
requires the Insured to do or not to do something.
◉ Subrogation. Answer: refers to the right of the Insurer to "step into the
shoes" of the party whom it has compensated and sue any party whom
the compensated party could have sued.
◉ Warranty. Answer: is a promise that certain facts are as they are
represented to be and that they will remain so.
◉ Material fact. Answer: a fact which if communicated to the Insurer
would induce it either to decline the insurance altogether, or not accept it
unless a higher premium is paid.
◉ Fraudulent. Answer: to act wilfully, and with the specific intent to
deceive or cheat
◉ Void contract. Answer: a void contract is one which has no "legal or
binding force" and as such, "is incapable of being enforced by law."
◉ Fire resistive. Answer: building which has met minimum standards in
terms of hours it will withstand a specific, carefully controlled test fire.
◉ Non-combustible. Answer: all structural members including floors,
roofs and their supports are constructed of steel, iron, concrete or other
QUESTIONS WITH ANSWERS GRADED A+
◉ All Property. Answer: refers to policy used to insure building, stock
and equipment under a single limit of insurance.
◉ Tenants Improvements. Answer: building improvements, alterations
and betterments made at the expense of or purchased by the insured to a
building occupied by the insured and which are not otherwise insured,
provided the insured is not the actual owner of such building
◉ Actual cash value. Answer: the replacement or repair cost less
depreciation
◉ Replacement value. Answer: represents the costs to repair, replace or
rebuild the lost or damaged property without deduction for depreciation
◉ Reinsurance. Answer: involves an Insurer ceding part of the risk it has
assumed to one or more other insurers.
◉ Subscription. Answer: an insurance policy under which a group of
Insurers has agreed to participate in providing policy insurance
coverages.
, ◉ Condition. Answer: is something imposed by the Insurer which
requires the Insured to do or not to do something.
◉ Subrogation. Answer: refers to the right of the Insurer to "step into the
shoes" of the party whom it has compensated and sue any party whom
the compensated party could have sued.
◉ Warranty. Answer: is a promise that certain facts are as they are
represented to be and that they will remain so.
◉ Material fact. Answer: a fact which if communicated to the Insurer
would induce it either to decline the insurance altogether, or not accept it
unless a higher premium is paid.
◉ Fraudulent. Answer: to act wilfully, and with the specific intent to
deceive or cheat
◉ Void contract. Answer: a void contract is one which has no "legal or
binding force" and as such, "is incapable of being enforced by law."
◉ Fire resistive. Answer: building which has met minimum standards in
terms of hours it will withstand a specific, carefully controlled test fire.
◉ Non-combustible. Answer: all structural members including floors,
roofs and their supports are constructed of steel, iron, concrete or other
