CAIB 1 Question and Answer [2026] | UPDATED
ACTUAL Exam | Ultimate Study Guide
• 5% of the amount of insurance on the dwelling can be used to pay for reasonable
expenses for the loss from an insured peril -✓✓ Mobile Homeowners Form -
Emergency Removal Expense Included
• 1)Loss or damage caused by moving
2) Loss due to conversion, embezzlement or secretion by any person in possession
of the building -✓✓ Mobile Homeowners Form - Exclusions
• 1) Those living in apartments
2) Those renting a dwelling or any portion of it
3) People who receive use of a dwelling as a part of their remuneration -✓✓ People
who qualify for Tenant Policies
• Coverage C - Personal Property
i) Improvements at the expense of the tenant
ii) $500 for theft and/or vandalism
Coverage D - Additional Living Expense
20% of Coverage C - Personal Property -✓✓ Coverages provided by Tenants
Package Forms
• An individually owned housing unit in a building with several such units -✓✓
Condominium
,• The insured a single amount of insurance in its own name -✓✓ The
Condominium Act Requires?
• 1) The value of the building
2) The value of common elements -✓✓ The Condominium Act Covers
• 1) Personal Property Coverage
2) Other Essential Coverages - Loss assessment, unit improvements or betterment -
✓✓ Condominium Owners are responsible to purchase what type of coverage?
• 1) Transportation
2) Burglary/Robbery
3) Vandalism or Malicious Acts
4) Glass Breakage -✓✓ 4 Perils that are covered on homeowners forms that are not
automatically covered by Seasonal Residence Form
• 1) Must be insured with same insurer
2) Must be a year round residence
3) Must not be rented
4) Must be heated by furnace or electric
5) Must Be accessible by a maintained road -✓✓ Requirements that need to be met
for a Seasonal Dwelling to be covered under Homeowners Forms
• Extra sheet(s) or slip(s) of paper attached to the policy indication in writing any
changes to the contract which are agreed upon -✓✓ Endorsement
,• This endorsement removes the exclusion for owned trailer on IBC Habitation
Forms -✓✓ Travel Trailer Floater
• 1) Annual Premium
2) Loss occurs in summer months
3) 75% Retained premium -✓✓ Minimum retained premium on watercraft policies
• $20/Day
$200/Policy Year -✓✓ Watercraft - Loss of Use amounts
• 1) Accumulative Damage
2) Wear & Tear
3) Work done on insured property
4) Dishonesty
5) Rented or leased to others, carrying passengers for compensation, being
operated in any race -✓✓ Watercraft - Policy Exclusions
• 1) Transportation Losses
2) Collision with underwater rocks or objects floating in the water -✓✓ Watercraft
- "All Risk" Coverages
• 1) The Boat
2) The Motor
3) The boat trailer
4) Boat Equipment -✓✓ Watercraft - Property Insured
, • Coverage is subject to 10% of the total amount on the dwelling, detached private
structures & personal property -✓✓ Earthquake Endorsement
• Broadens coverages for " the back up of water from a sewer or drain,sump, septic
tank, eaves trough or downspout -✓✓ Sewer Back-Up Endorsement
• Adds accidental glass breakage coverage - this indorsment is used to reduce the
deductible -✓✓ Residence Glass Endorsement
• Pays additional costs to demo/repair after a loss -✓✓ Increased Cost Demolition
or Construction
• High Valued Property ($10,000) -✓✓ Personal Articles Endorsement
• 1) Increase insurance limits
2) Broadens Coverages
3) Reduce or eliminate deductibles under those policies
4)Coverage for excluded property or perils -✓✓ Endorsement Advantages
• Insurance for objects regarded as fine arts. Ex; Paintings, pictures, valuable rugs -
✓✓ Fine Arts Endorsement
• 1) Sporting Equipment
2) Animals, Birds or Fish
3) Outdoor Radio & TV Antennae
4) Wear& Tear or deterioration
ACTUAL Exam | Ultimate Study Guide
• 5% of the amount of insurance on the dwelling can be used to pay for reasonable
expenses for the loss from an insured peril -✓✓ Mobile Homeowners Form -
Emergency Removal Expense Included
• 1)Loss or damage caused by moving
2) Loss due to conversion, embezzlement or secretion by any person in possession
of the building -✓✓ Mobile Homeowners Form - Exclusions
• 1) Those living in apartments
2) Those renting a dwelling or any portion of it
3) People who receive use of a dwelling as a part of their remuneration -✓✓ People
who qualify for Tenant Policies
• Coverage C - Personal Property
i) Improvements at the expense of the tenant
ii) $500 for theft and/or vandalism
Coverage D - Additional Living Expense
20% of Coverage C - Personal Property -✓✓ Coverages provided by Tenants
Package Forms
• An individually owned housing unit in a building with several such units -✓✓
Condominium
,• The insured a single amount of insurance in its own name -✓✓ The
Condominium Act Requires?
• 1) The value of the building
2) The value of common elements -✓✓ The Condominium Act Covers
• 1) Personal Property Coverage
2) Other Essential Coverages - Loss assessment, unit improvements or betterment -
✓✓ Condominium Owners are responsible to purchase what type of coverage?
• 1) Transportation
2) Burglary/Robbery
3) Vandalism or Malicious Acts
4) Glass Breakage -✓✓ 4 Perils that are covered on homeowners forms that are not
automatically covered by Seasonal Residence Form
• 1) Must be insured with same insurer
2) Must be a year round residence
3) Must not be rented
4) Must be heated by furnace or electric
5) Must Be accessible by a maintained road -✓✓ Requirements that need to be met
for a Seasonal Dwelling to be covered under Homeowners Forms
• Extra sheet(s) or slip(s) of paper attached to the policy indication in writing any
changes to the contract which are agreed upon -✓✓ Endorsement
,• This endorsement removes the exclusion for owned trailer on IBC Habitation
Forms -✓✓ Travel Trailer Floater
• 1) Annual Premium
2) Loss occurs in summer months
3) 75% Retained premium -✓✓ Minimum retained premium on watercraft policies
• $20/Day
$200/Policy Year -✓✓ Watercraft - Loss of Use amounts
• 1) Accumulative Damage
2) Wear & Tear
3) Work done on insured property
4) Dishonesty
5) Rented or leased to others, carrying passengers for compensation, being
operated in any race -✓✓ Watercraft - Policy Exclusions
• 1) Transportation Losses
2) Collision with underwater rocks or objects floating in the water -✓✓ Watercraft
- "All Risk" Coverages
• 1) The Boat
2) The Motor
3) The boat trailer
4) Boat Equipment -✓✓ Watercraft - Property Insured
, • Coverage is subject to 10% of the total amount on the dwelling, detached private
structures & personal property -✓✓ Earthquake Endorsement
• Broadens coverages for " the back up of water from a sewer or drain,sump, septic
tank, eaves trough or downspout -✓✓ Sewer Back-Up Endorsement
• Adds accidental glass breakage coverage - this indorsment is used to reduce the
deductible -✓✓ Residence Glass Endorsement
• Pays additional costs to demo/repair after a loss -✓✓ Increased Cost Demolition
or Construction
• High Valued Property ($10,000) -✓✓ Personal Articles Endorsement
• 1) Increase insurance limits
2) Broadens Coverages
3) Reduce or eliminate deductibles under those policies
4)Coverage for excluded property or perils -✓✓ Endorsement Advantages
• Insurance for objects regarded as fine arts. Ex; Paintings, pictures, valuable rugs -
✓✓ Fine Arts Endorsement
• 1) Sporting Equipment
2) Animals, Birds or Fish
3) Outdoor Radio & TV Antennae
4) Wear& Tear or deterioration
