CAIB 1 Exam Prep 2026/2027 –
Comprehensive Study Guide | Latest
Updated & Verified Questions and
Answers
Transfer of risk - buy insurance
Avoidance of risk - avoid the chance of financial loss
Controlling of rish - taking measures to reduce the frequency and securitu of loss
Retention of risk - when a company decides to finance their own losses - correct
answer-People can choose to deal with risk in a variety of ways. Identify four
possible options and provide a brief explanation of each.
Transfer of risk is the most practical - correct answer-Which of these options is
most practical for most people?
1. Agreement
2. Consideration
3. Legality of object
, 4. Legal capacity of the parties to contract
5. Genuine intention - correct answer-Identify the five elements required to be
present in all types of contracts.
Individuals - yes
Trade names - no
Corporations -yes - correct answer-Indicate wether the following are permitted to
enter into a contract:
Insurable interest
Utmost good faith
Indemnity - correct answer-Insurance contracts are different from all other types
of contracts. Identify the three additional elements of insurance contracts which
are not required of other types of contracts.
Insured's - expert advice
Competitive pricing of products
Careful and prompt attention to
instructions
Insurers - collect premium
Passing on of relevant information
obtained from the client - correct answer-State two duties owed by brokers to:
Comprehensive Study Guide | Latest
Updated & Verified Questions and
Answers
Transfer of risk - buy insurance
Avoidance of risk - avoid the chance of financial loss
Controlling of rish - taking measures to reduce the frequency and securitu of loss
Retention of risk - when a company decides to finance their own losses - correct
answer-People can choose to deal with risk in a variety of ways. Identify four
possible options and provide a brief explanation of each.
Transfer of risk is the most practical - correct answer-Which of these options is
most practical for most people?
1. Agreement
2. Consideration
3. Legality of object
, 4. Legal capacity of the parties to contract
5. Genuine intention - correct answer-Identify the five elements required to be
present in all types of contracts.
Individuals - yes
Trade names - no
Corporations -yes - correct answer-Indicate wether the following are permitted to
enter into a contract:
Insurable interest
Utmost good faith
Indemnity - correct answer-Insurance contracts are different from all other types
of contracts. Identify the three additional elements of insurance contracts which
are not required of other types of contracts.
Insured's - expert advice
Competitive pricing of products
Careful and prompt attention to
instructions
Insurers - collect premium
Passing on of relevant information
obtained from the client - correct answer-State two duties owed by brokers to:
