CAIB 1 Practice Verified Exam Questions and
Answers 2026/2027
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Terms in this set (100)
Consideration is... d. An exchange of something of value
a. The law of insurance
b. A promise between parties
c. A contract's binding force
d. An exchange of something of value
,A stock company is... b. A company owned by stockholders who provide
a. A company that invests in other the capital to start and run the company
companies
b. A company owned by stockholders
who provide the capital to start and
run the company
c. Is owned by customers of the
company
d. A company that owns livestock
The difference between pure and b. Speculative risk means that there is a chance to gain
speculative risk is... or lose whereas one can only lose with pure risk
a. Speculative risk is insurable but pure
risk is not
b. Speculative risk means that there is a
chance to gain or lose whereas one
can only lose with pure risk
c. Speculative risk means that there is
only the chance to lose whereas pure
risk means you have a chance to win
too
d. Speculative risk is a term invented
by marine insurance companies in 1864
, A legally enforceable agreement a. A contract
between 2 or more parties is defined
as...
a. A contract
b. An agreement
c. A will
d. A contract of consideration
What are the 4 methods of dealing Avoidance,
with risk? control,
retention,
transfer
A reduction in value is called a... a. Loss
a. Loss
b. Unlucky situation
c. Claim
d. Transfer
What elements must be present to c. Agreement, consideration, legality of object, legal
constitute a legal contract? capacity, genuine intention
a. Parties to the contract, the contract
itself, consideration
b. Parties to the contract, a written
document, consideration, and legal
purpose
c. Agreement, consideration, legality
of object, legal capacity, genuine
intention
d. Competent parties, consideration,
warranty, and legal purpose
Answers 2026/2027
Play your way to mastery with fun games
Match Blocks Charms NEW
Terms in this set (100)
Consideration is... d. An exchange of something of value
a. The law of insurance
b. A promise between parties
c. A contract's binding force
d. An exchange of something of value
,A stock company is... b. A company owned by stockholders who provide
a. A company that invests in other the capital to start and run the company
companies
b. A company owned by stockholders
who provide the capital to start and
run the company
c. Is owned by customers of the
company
d. A company that owns livestock
The difference between pure and b. Speculative risk means that there is a chance to gain
speculative risk is... or lose whereas one can only lose with pure risk
a. Speculative risk is insurable but pure
risk is not
b. Speculative risk means that there is a
chance to gain or lose whereas one
can only lose with pure risk
c. Speculative risk means that there is
only the chance to lose whereas pure
risk means you have a chance to win
too
d. Speculative risk is a term invented
by marine insurance companies in 1864
, A legally enforceable agreement a. A contract
between 2 or more parties is defined
as...
a. A contract
b. An agreement
c. A will
d. A contract of consideration
What are the 4 methods of dealing Avoidance,
with risk? control,
retention,
transfer
A reduction in value is called a... a. Loss
a. Loss
b. Unlucky situation
c. Claim
d. Transfer
What elements must be present to c. Agreement, consideration, legality of object, legal
constitute a legal contract? capacity, genuine intention
a. Parties to the contract, the contract
itself, consideration
b. Parties to the contract, a written
document, consideration, and legal
purpose
c. Agreement, consideration, legality
of object, legal capacity, genuine
intention
d. Competent parties, consideration,
warranty, and legal purpose
