CAIB 2 COMPREHENSIVE EXAM 2026
QUESTIONS WITH ANSWERS GRADED A+
◉ All Property. Answer: refers to policy used to insure building,
equipment and stock under a single limit of Insurance
◉ Tenants Improvement. Answer: building improvements, alteration and
betterments made at 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 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 to cede part of the risk it
has assumed to one or more other insurer
, ◉ Subscription. Answer: an insurance policy under which a group of
insurers has agreed to participate in providing policy insurance
coverages
◉ Condition. Answer: is something that imposed by the insurer that
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 the 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 effect it ether to decline the insurance all together, or not accept it
unless higher premium is paid
◉ Fraudulent. Answer: to act wilfully and with specific intent to deceive
or cheat
◉ Void contract. Answer: is the one which has no "legal or binding
force" and as such , "is incapable of being enforced by law"
QUESTIONS WITH ANSWERS GRADED A+
◉ All Property. Answer: refers to policy used to insure building,
equipment and stock under a single limit of Insurance
◉ Tenants Improvement. Answer: building improvements, alteration and
betterments made at 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 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 to cede part of the risk it
has assumed to one or more other insurer
, ◉ Subscription. Answer: an insurance policy under which a group of
insurers has agreed to participate in providing policy insurance
coverages
◉ Condition. Answer: is something that imposed by the insurer that
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 the 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 effect it ether to decline the insurance all together, or not accept it
unless higher premium is paid
◉ Fraudulent. Answer: to act wilfully and with specific intent to deceive
or cheat
◉ Void contract. Answer: is the one which has no "legal or binding
force" and as such , "is incapable of being enforced by law"
