CAIB 2
Your client, a retail fashion store, has just rented a business premises in a mall. Before
opening your business, she plans to install new wall to wall carpeting and install wall
paneling. These values would be insured under the amount provided for:
A. Stock
B. Equipment
C. Building
D. Business Interruption—ANSWER--B. Equipment
While the law permits the insurer to surrogate against the party responsible for the loss,
the insurer agrees not to exercise that right in respect to certain parties under the policy.
Which of the following parties would be surrogates agains in the event of their
responsibility?
A. insureds business partner
B. Mortgagee
C. Parents who provide financing
,D. Independent contractor—ANSWER--D. Independent contractor
The commercial building, equipment and stock (broad form policy) insures all of the
following except:
A. Theft or attempted theft
B. Rupture of freezing
C. Collapse
D. Mysterious disappearance—ANSWER--D. Mysterious disappearance
Under a commercial property insurance policy, which of the following would be
considered equipment?
A. Photocopier leased from ideal copiers
B. Advertising brochures promoting next months end sales
C. Customers shoes kept on premises overnight for repair
D. Shoes held on consignment—ANSWER--A. Photocopier leased from ideal copiers
The consequential loss assumption clauses is defined to insured:
A. Damage caused to refrigerator or cooling equipment
B. Damage caused by freezing due to power failure
C. Loss to stock due to loss of temperature
D. Contamination of stock due to rupture of supply piping—ANSWER--C. Loss to stock
due to loss of temperature
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law, Copyrighted By Brittie Donald
,The coverages provided by the coverages provided by the contractors equipment floater
would insured which of the following losses?
A. Damage caused to front end loader due to freezing
B. Cracking of engine block on caterpillar due to freezing
C. Fire damage to contractors plans, blueprints, design or specifications
D. Sinking of caterpillar while operating over muskeg—ANSWER--A. Damage caused to
front end loader due to freezing
The safe burglary rider would insure one of the following losses:
A. Money taken from locked cash drawer
B. Money and securities taken from an unlocked safe
C. Money and securities taken from a locked safe by the burglar who knew its
combination
D. Removal of the safe from the premises—ANSWER--D. Removal of the safe from the
premises
The insurance industry relies on the classifications developed by the following body
when determining the appropriateness of the protection provided to property by
safes,vaults and other:
A. IAO
B. ULC
C. IBC
, D. Canada Safety Council—ANSWER--B. ULC
All of the following statements except one are true when the insureds business has
been interrupted by order of civil authority. Pick the exception:
A. Insured's building must have suffered physical damage
B. Coverage is limited to a maximum of two weeks
C. Insured is entitled to recover lost income even through there has been no actual
damage to the insured property
D. Order must have been given as a direct result of damage to neighbouring premises by
a peril insured against on the insureds own premises—ANSWER--A. Insureds business
must have suffered physical damage
Accommodation business is best described as:
A. A specialized type of insurance risk which included hotels, motels, apartment
buildings and rental property
B. A risk which can be insured only under a subscription policy
C. A risk which is substandard or marginal, but which, because of its relationship with
the broker, the insurer agrees to to underwrite
D. A risk which is normally acceptable to the insurer but which cannot be bound by the
broker without the insurers consent—ANSWER--C. A risk which is substandard or
marginal, but which, because of its relationship with the broker, the insurer agrees to
underwrite
The accounts receivable form would not provide payment for:
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law, Copyrighted By Brittie Donald
Your client, a retail fashion store, has just rented a business premises in a mall. Before
opening your business, she plans to install new wall to wall carpeting and install wall
paneling. These values would be insured under the amount provided for:
A. Stock
B. Equipment
C. Building
D. Business Interruption—ANSWER--B. Equipment
While the law permits the insurer to surrogate against the party responsible for the loss,
the insurer agrees not to exercise that right in respect to certain parties under the policy.
Which of the following parties would be surrogates agains in the event of their
responsibility?
A. insureds business partner
B. Mortgagee
C. Parents who provide financing
,D. Independent contractor—ANSWER--D. Independent contractor
The commercial building, equipment and stock (broad form policy) insures all of the
following except:
A. Theft or attempted theft
B. Rupture of freezing
C. Collapse
D. Mysterious disappearance—ANSWER--D. Mysterious disappearance
Under a commercial property insurance policy, which of the following would be
considered equipment?
A. Photocopier leased from ideal copiers
B. Advertising brochures promoting next months end sales
C. Customers shoes kept on premises overnight for repair
D. Shoes held on consignment—ANSWER--A. Photocopier leased from ideal copiers
The consequential loss assumption clauses is defined to insured:
A. Damage caused to refrigerator or cooling equipment
B. Damage caused by freezing due to power failure
C. Loss to stock due to loss of temperature
D. Contamination of stock due to rupture of supply piping—ANSWER--C. Loss to stock
due to loss of temperature
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law, Copyrighted By Brittie Donald
,The coverages provided by the coverages provided by the contractors equipment floater
would insured which of the following losses?
A. Damage caused to front end loader due to freezing
B. Cracking of engine block on caterpillar due to freezing
C. Fire damage to contractors plans, blueprints, design or specifications
D. Sinking of caterpillar while operating over muskeg—ANSWER--A. Damage caused to
front end loader due to freezing
The safe burglary rider would insure one of the following losses:
A. Money taken from locked cash drawer
B. Money and securities taken from an unlocked safe
C. Money and securities taken from a locked safe by the burglar who knew its
combination
D. Removal of the safe from the premises—ANSWER--D. Removal of the safe from the
premises
The insurance industry relies on the classifications developed by the following body
when determining the appropriateness of the protection provided to property by
safes,vaults and other:
A. IAO
B. ULC
C. IBC
, D. Canada Safety Council—ANSWER--B. ULC
All of the following statements except one are true when the insureds business has
been interrupted by order of civil authority. Pick the exception:
A. Insured's building must have suffered physical damage
B. Coverage is limited to a maximum of two weeks
C. Insured is entitled to recover lost income even through there has been no actual
damage to the insured property
D. Order must have been given as a direct result of damage to neighbouring premises by
a peril insured against on the insureds own premises—ANSWER--A. Insureds business
must have suffered physical damage
Accommodation business is best described as:
A. A specialized type of insurance risk which included hotels, motels, apartment
buildings and rental property
B. A risk which can be insured only under a subscription policy
C. A risk which is substandard or marginal, but which, because of its relationship with
the broker, the insurer agrees to to underwrite
D. A risk which is normally acceptable to the insurer but which cannot be bound by the
broker without the insurers consent—ANSWER--C. A risk which is substandard or
marginal, but which, because of its relationship with the broker, the insurer agrees to
underwrite
The accounts receivable form would not provide payment for:
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law, Copyrighted By Brittie Donald
