CAIB 1 EVALUATION EXAM LATEST QUESTIONS AND
ANSWERS SURE A+
✔✔What are 5 coverages in broad form that aren't in named perils forms? - ✔✔a.
Vehicle impact to insured's building when driven by insured
b. All sources of smoke damage excluding industrial operations
c. Water damage due to freezing or rupturing of water lines
d. Theft
e. Collapse (excluding earthquake or faulty workmanship)
✔✔What are 5 factors insurers look at to determine the base rate for commercial
property? - ✔✔Construction,
protection,
occupancy,
location,
claims history
✔✔A "building" is defined as... - ✔✔a. Fixed structures
b. Additions/extensions
c. Permanent fittings
d. Materials on premises for regular maintenance e. Growing plants inside the building
for decoration
✔✔Stock is defined as... - ✔✔Merchandise usual to the business &
packing/wrapping/advertising materials
✔✔What is the formula for calculating co-insurance? - ✔✔Did/should x amount of loss
✔✔What is the reinstatement clause? - ✔✔Same amount of insurance after the loss as
before the loss
✔✔When can an insurer not subrogate against you? - ✔✔When you have insurable
interest in the property
✔✔What responsibilities does an insured have under the property protection systems
clause? - ✔✔Notify insurer immediately when they: know of an interruption or flaw,
when a monitoring/maintenance contract has lapsed, suspension of police services
✔✔What are 2 key coverages under boiler and machinery (aka equipment breakdown)?
- ✔✔a. Damage from explosion of boiler/pressure vessel operating at over 15 psi
, b. Electrical/mechanical breakdown of objects
✔✔Do business interruption policies cover any perils excluded the corresponding
property policy? - ✔✔No
✔✔What is the basic difference between the earning form and the profits form? -
✔✔Earnings form ends when property has been replaced. Profits form ends when
income is restored to pre-loss levels.
✔✔What is bodily injury? - ✔✔Physical injury associated with external causes
✔✔What does it mean when an insurer agrees to pay supplementary payments? What
is the purpose and give 3 examples. - ✔✔pays for investigating, settling or defending a
claim
a. Cost of defense
b. Reasonable expenses insured incurred to help in investigation and defense
c. Court costs
d. Interest from date of judgement to payment (based on limit of insurance only)
✔✔Liability coverages on the homeowners forms do not usually insure damage arising
out of business activities, what are the 3 exceptions? - ✔✔a. Personal actions during
work not directly related to job
b. Rental portions of your home (up to 2 roomers/boarders)
c. Temporary or part-time business of an insured person under 21
✔✔Name 3 workers compensation plan benefits - ✔✔Necessary health care costs,
lost earnings,
death benefit
✔✔What is an elimination period? - ✔✔A period of self-insurance between the start of
disability and the start of benefits
✔✔Who has insurable interest under Accident & Sickness insurance? - ✔✔The insured
himself & spouse, employee, child, anyone with pecuniary interest, dependents
✔✔Who qualifies as a dependent? - ✔✔Anyone under 20 (26 if in college), unmarried,
living with and receiving full support from insured. Or anyone with mental of physical
deformity
✔✔ Consideration is...
a. The law of insurance
ANSWERS SURE A+
✔✔What are 5 coverages in broad form that aren't in named perils forms? - ✔✔a.
Vehicle impact to insured's building when driven by insured
b. All sources of smoke damage excluding industrial operations
c. Water damage due to freezing or rupturing of water lines
d. Theft
e. Collapse (excluding earthquake or faulty workmanship)
✔✔What are 5 factors insurers look at to determine the base rate for commercial
property? - ✔✔Construction,
protection,
occupancy,
location,
claims history
✔✔A "building" is defined as... - ✔✔a. Fixed structures
b. Additions/extensions
c. Permanent fittings
d. Materials on premises for regular maintenance e. Growing plants inside the building
for decoration
✔✔Stock is defined as... - ✔✔Merchandise usual to the business &
packing/wrapping/advertising materials
✔✔What is the formula for calculating co-insurance? - ✔✔Did/should x amount of loss
✔✔What is the reinstatement clause? - ✔✔Same amount of insurance after the loss as
before the loss
✔✔When can an insurer not subrogate against you? - ✔✔When you have insurable
interest in the property
✔✔What responsibilities does an insured have under the property protection systems
clause? - ✔✔Notify insurer immediately when they: know of an interruption or flaw,
when a monitoring/maintenance contract has lapsed, suspension of police services
✔✔What are 2 key coverages under boiler and machinery (aka equipment breakdown)?
- ✔✔a. Damage from explosion of boiler/pressure vessel operating at over 15 psi
, b. Electrical/mechanical breakdown of objects
✔✔Do business interruption policies cover any perils excluded the corresponding
property policy? - ✔✔No
✔✔What is the basic difference between the earning form and the profits form? -
✔✔Earnings form ends when property has been replaced. Profits form ends when
income is restored to pre-loss levels.
✔✔What is bodily injury? - ✔✔Physical injury associated with external causes
✔✔What does it mean when an insurer agrees to pay supplementary payments? What
is the purpose and give 3 examples. - ✔✔pays for investigating, settling or defending a
claim
a. Cost of defense
b. Reasonable expenses insured incurred to help in investigation and defense
c. Court costs
d. Interest from date of judgement to payment (based on limit of insurance only)
✔✔Liability coverages on the homeowners forms do not usually insure damage arising
out of business activities, what are the 3 exceptions? - ✔✔a. Personal actions during
work not directly related to job
b. Rental portions of your home (up to 2 roomers/boarders)
c. Temporary or part-time business of an insured person under 21
✔✔Name 3 workers compensation plan benefits - ✔✔Necessary health care costs,
lost earnings,
death benefit
✔✔What is an elimination period? - ✔✔A period of self-insurance between the start of
disability and the start of benefits
✔✔Who has insurable interest under Accident & Sickness insurance? - ✔✔The insured
himself & spouse, employee, child, anyone with pecuniary interest, dependents
✔✔Who qualifies as a dependent? - ✔✔Anyone under 20 (26 if in college), unmarried,
living with and receiving full support from insured. Or anyone with mental of physical
deformity
✔✔ Consideration is...
a. The law of insurance
