CAIB 2 Full Study Guide Exam
comprehensive questions and
verified answers ACTUAL
EXAM 2026 TEST!! Graded A+ |
2025|2026 EXAM UPDATE
The three amounts to be considered when calculating the amount of
payment as outlined in the Indemnity Agreement are: - ANSWER
✔✔1) the value of the lost or damaged property (ACV)
2) the interest of the insured in the property (ex. financial interest, home,
mortgage)
,3) the amount of insurance specified on the "Declarations Page" for the
loss or damaged property (least amount|)
Identify the four categories that buildings may fall into: - ANSWER
✔✔Residential (ex. home)
Non-mercantile (ex. hospitals, nursing homes)
Mercantile (ex. drycleaners, bakeries)
Manufacturing/Industrial (ex. autobody shops)
Three classes of property commercially insured are: - ANSWER
✔✔building, stock, equipment
Identify the two bases that coverage can be provided on: - ANSWER
✔✔Scheduled
All property
Property of every description
Identify and give an example of each of the five types of property
contained in the definition of Building found in the IBC Commercial
Property Broad Form - ANSWER ✔✔1) Growing plants, trees, shrubs
INSIDE the building used for decorative purposes only when insured is
the owner of the building (ex. cactus)
,2) Materials and equipment supplies ON the premises for maintenance
(ex. lumbar, glass)
3) Additions and extensions IN CONTACT with the building (enclosed
walk-way between buildings)
4) Permanent fittings and fixtures ATTACHED and FORMING part of the
building. (ex. light fixtures, carpeting)
5) Fixed structures PERTAINING to building and located on the
premises (ex. fence)
[GMAPF]
Identify the three conditions pertaining to the coverage for growing
plants, trees, etc. - ANSWER ✔✔- such property was INSIDE the
building
- was being used for decorative purposes
3
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2026. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
, - insured was the owner of the building
Identify and give an example of the three types of property contained in
the definition of Stock found in the IBC Commercial Property Broad
Form: - ANSWER ✔✔1) packing, wrapping and advertising materials
(ex. bubble plastic, Styrofoam)
2) merchandise of every description USUAL to insureds business (ex.
goods for sale for business)
3) similar property belonging to others which the insured is under
obligation to keep insured or for which he is legally liable for (appliance if
appliance store.
[PMS]
Identify the three conditions that need to be present before 'similar
property belonging to others' will be insured under the definition of Stock:
- ANSWER ✔✔1) must be similar to that insured by the policy
2) the insured must have had an obligation to keep the property insured
3) the insured must be legally liable for it.
comprehensive questions and
verified answers ACTUAL
EXAM 2026 TEST!! Graded A+ |
2025|2026 EXAM UPDATE
The three amounts to be considered when calculating the amount of
payment as outlined in the Indemnity Agreement are: - ANSWER
✔✔1) the value of the lost or damaged property (ACV)
2) the interest of the insured in the property (ex. financial interest, home,
mortgage)
,3) the amount of insurance specified on the "Declarations Page" for the
loss or damaged property (least amount|)
Identify the four categories that buildings may fall into: - ANSWER
✔✔Residential (ex. home)
Non-mercantile (ex. hospitals, nursing homes)
Mercantile (ex. drycleaners, bakeries)
Manufacturing/Industrial (ex. autobody shops)
Three classes of property commercially insured are: - ANSWER
✔✔building, stock, equipment
Identify the two bases that coverage can be provided on: - ANSWER
✔✔Scheduled
All property
Property of every description
Identify and give an example of each of the five types of property
contained in the definition of Building found in the IBC Commercial
Property Broad Form - ANSWER ✔✔1) Growing plants, trees, shrubs
INSIDE the building used for decorative purposes only when insured is
the owner of the building (ex. cactus)
,2) Materials and equipment supplies ON the premises for maintenance
(ex. lumbar, glass)
3) Additions and extensions IN CONTACT with the building (enclosed
walk-way between buildings)
4) Permanent fittings and fixtures ATTACHED and FORMING part of the
building. (ex. light fixtures, carpeting)
5) Fixed structures PERTAINING to building and located on the
premises (ex. fence)
[GMAPF]
Identify the three conditions pertaining to the coverage for growing
plants, trees, etc. - ANSWER ✔✔- such property was INSIDE the
building
- was being used for decorative purposes
3
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2026. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
, - insured was the owner of the building
Identify and give an example of the three types of property contained in
the definition of Stock found in the IBC Commercial Property Broad
Form: - ANSWER ✔✔1) packing, wrapping and advertising materials
(ex. bubble plastic, Styrofoam)
2) merchandise of every description USUAL to insureds business (ex.
goods for sale for business)
3) similar property belonging to others which the insured is under
obligation to keep insured or for which he is legally liable for (appliance if
appliance store.
[PMS]
Identify the three conditions that need to be present before 'similar
property belonging to others' will be insured under the definition of Stock:
- ANSWER ✔✔1) must be similar to that insured by the policy
2) the insured must have had an obligation to keep the property insured
3) the insured must be legally liable for it.
