CAIB 2 UPDATED ACTUAL QUESTIONS
AND CORRECT ANSWERS EXAM SCRIPT
●● All Property
Answer: refers to policy used to insure building, stock and equipment
under a single limit of insurance.
●● Tenants Improvements
Answer: building improvements, alterations and betterments made at the
expense of or purchased by the insured to a building occupied by the
insured and which are not otherwise insured, provided the insured is not
the actual owner of such building
●● Actual cash value
Answer: the replacement or repair cost less depreciation
●● Replacement value
Answer: represents the costs to repair, replace or rebuild the lost or
damaged property without deduction for depreciation
●● Reinsurance
Answer: involves an Insurer ceding part of the risk it has assumed to one
or more other insurers.
, ●● Subscription
Answer: an insurance policy under which a group of Insurers has agreed
to participate in providing policy insurance coverages.
●● Condition
Answer: is something imposed by the Insurer which requires the Insured
to do or not to do something.
●● Subrogation
Answer: refers to the right of the Insurer to "step into the shoes" of the
party whom it has compensated and sue any party whom the
compensated party could have sued.
●● Warranty
Answer: is a promise that certain facts are as they are represented to be
and that they will remain so.
●● Material fact
Answer: a fact which if communicated to the Insurer would induce it
either to decline the insurance altogether, or not accept it unless a higher
premium is paid.
●● Fraudulent
AND CORRECT ANSWERS EXAM SCRIPT
●● All Property
Answer: refers to policy used to insure building, stock and equipment
under a single limit of insurance.
●● Tenants Improvements
Answer: building improvements, alterations and betterments made at the
expense of or purchased by the insured to a building occupied by the
insured and which are not otherwise insured, provided the insured is not
the actual owner of such building
●● Actual cash value
Answer: the replacement or repair cost less depreciation
●● Replacement value
Answer: represents the costs to repair, replace or rebuild the lost or
damaged property without deduction for depreciation
●● Reinsurance
Answer: involves an Insurer ceding part of the risk it has assumed to one
or more other insurers.
, ●● Subscription
Answer: an insurance policy under which a group of Insurers has agreed
to participate in providing policy insurance coverages.
●● Condition
Answer: is something imposed by the Insurer which requires the Insured
to do or not to do something.
●● Subrogation
Answer: refers to the right of the Insurer to "step into the shoes" of the
party whom it has compensated and sue any party whom the
compensated party could have sued.
●● Warranty
Answer: is a promise that certain facts are as they are represented to be
and that they will remain so.
●● Material fact
Answer: a fact which if communicated to the Insurer would induce it
either to decline the insurance altogether, or not accept it unless a higher
premium is paid.
●● Fraudulent
