CAIB 1 Practice Exam (Multiple Choice) Questions and Answers(A+ Solution guide)

All of the following factors except one are used to determine the ACV of insured property. Pick the exception. A - condition of the object. B - sentimental value. C - re-sale value. D - normal life expectancy - Answer B - sentimental value. The Indemnity Agreement in property insurance policies states that in the event of a loss, the insurer will pay the lesser of three amounts in the event of a claim. One factor which does not enter into this calculation is A - the actual cash value of the property B - the original cost of the property C - the insured's interest in the property D - the policy limit - Answer B - the original cost of the property Under the various Homeowners Forms available today which of the following is not an "insured"? A - Insured's grandmother who also lives at the dwelling insured by the policy B - 16-year-old foster child left in the care of the insured C - Insured's daughter, age 22, who is living at home while attending university D - Insured's common law spouse who moved in four months ago and is not specifically named on the policy - Answer D - Insured's common law spouse who moved in four months ago and is not specifically named on the policy Occupiers of property owe no duty in law to the following persons who enter onto their premises. However, the occupier is prohibited in law from setting traps or intentionally harming them A - Trespassers B - Licensees C - Invitees D - Visitors - Answer A - TrespassersAll of the following examples of uses of the automobile except one are not considered to fall within the "carrying passengers for compensation or hire" even if money is exchanged. Pick the exception A - Carpools B - Taxicabs C - Carrying domestic servants D - Carrying of clients or customers - Answer B - Taxi Cabs