CAIB 2 STUDY NOTES; CHAPTER 4 Questions and Answers 100% Pass

CAIB 2 STUDY NOTES; CHAPTER 4 Questions and Answers 100% Pass Breifly explain the fuctions or endorsements, riders, and separate policies - Answer- 1. Endorsements; changes the terms or conditions of the insureds policy 2. Riders; adds additional coverage to those already in place 3. Separate policies; equipment breakdown insurance, computer crime, other specialized coverages often purchased separately but can be added to existing policy Identify the endorsement, rider or policy to respond to the following exclusions, restrictions, or limitations found in the fire and Ec or broad wording previously studied - Answer- 1. Exterior signs; sign form 2. Exterior glass; glass rider 3. Vacant property; vacant property 4. Records; valuable papers and records insurance Accounts receivable form Electronic data processing policy 5. Furs; furrier's block 6. Jewellery, watches, pearls, precious and semi-precious stones; jewellers block 7. Property on loan/rental/ conditional sale/payment plan; sales ns samples floaters/sales representative Identify the endorsement, rider or policy to respond to the following exclusions, restrictions, or limitations found in the fire and Ec or broad wording previously studied - Answer- 1. Boiler and certain pressure vessels; equipment breakdown 2. Centrifugal force, mechanical or electrical breakdown; equipment 3. Earthquake; earthquake endorsement 4. Flood; flood endorsement 5. Sewer backup/water escape; water escape endorsement 6. Changes of temperature; consequential loss assumption clause 7. Disturbance or erasure of electronic recordings; electronic data processing policy 8. Due to enforcement of any by-law regulation, ordinance or law; by laws endorsement Identify three other names for the sign floater - Answer- 1. Sign floater 2. Neon sign floater 3. Exterior sign floater In additional to damage to the sign, identify two other types of damage covered - Answer- 1. Lettering 2. Other artwork Identify five common exclusions to the sign form - Answer- 1. Wear and tear or mechanical breakdown 2. Electrical currents other thank lightening, except resultant loss from fire or explosion 3. While property being worked on (installation, repair or maintenance0 4. Dampness of atmosphere or extremes of temperature 5. Strikers, locked out workmen, or personal taking part in labour disturbances or riots or civic commotions Identify the two bases on which glass can be insured under a glass rider - Answer- 1. Scheduled basis 2. Blanket basis List the three details required to be itemized by the broker when glass is on a scheduled basis - Answer- 1. Type, number and size of glass to be insured 2. Location - interior or exterior 3. Description of lettering, or name notation, tape or foil Identify three examples of lossescovered by the rider - Answer- 1. Accidental breakage by insured or employees 2. Stones thrown from tires of passing vehicles 3. Shifting or building due to earth movement Identify five exclusions to the rider - Answer- 1. Fire 2. Deliberate acts of war, or like violence 3. During construction of, alteration to premises, other thank ordinary repair/maintenance 4. When premises vacant, on occupied, shut down 30 days 5. Arising out of enforcement of by laws Identify three additional coverages som insurers are willing to provide - Answer- 1. Costs of making temporary repairs, such as incurred in boarding up damaged openings 2. Costs of removing obstructions, metal grills, to facilitate repair 3. Cost of making repairs to damaged window, showcase, or other frames Identify the four coverage components of the accounts receivable form - Answer- 1. Amounts which cannot be collected as direct result from loss or accounts receivable records from insured peril. 2. Interest charges on any loan o offset impaired uncollectible by such loss or damage. Interest loans taken by insured to offset amounts owed to business not yet collected 3. Collection expense is excess of normal collection cost and necessary because of loss 4. Other expenses in re-establishing records of accounts receivable following such loss or damage Identify three areas addressed by the form - Answer- 1. Location and protection of accounts receivable records 2. Coverage available on reporting or non-reporting basis. Allows full coverage for maximum exposure 3. Limiting exposure to loss-duplicates as backup Identify where accounts receivable records must be stored when not in use - Answer- Must be maintained in the receptacles described on the form Besides the quality of the storage receptacle, identify one other factor which will effect rate charged - Answer- The availability of duplicate records Why would accounts receivable coverage be required when there are duplicate copies kept off premises - Answer- Cannot fully eliminate accounts receivable exposure, loss or fire could occur late afternoon or busy day prior to backing up transactions Do valuable peppers and records insurance cover loss to money and securities - Answer- No Identify any three types of property covered by the form - Answer- 1. Deeds, mortgages 2. Manuscripts 3. Books, maps 4. Films Identify two factors that will affect the amount of rate credit provided to the client - Answer- 1. Quality of receptacle in which valuab