CAIB 2 Chapter 1
Practice exam 2
Questions & Answers
100% Correct
the company which assumes the greatest portion of an account - ANSWERLead Company
What is re-insurance - ANSWERan insurance company 'ceding' part of the risk to a re-insurer
What are three considerations used when determining amounts of indemnity? - ANSWERi) Actual
Cash Value of the property as it existed immediately prior to the loss
ii) The interest of the insured in the property
iii) The amount of insurance as shown on the policy
i) Actual Cash Value of the property as it existed prior to the loss
ii) The interest of the insured in the property
iii) The amount of insurance as shown on the policy
Which of the above amounts will be paid in the event of insured losses? - ANSWERInsureds will
receive whichever is the least
Practice exam 2
Questions & Answers
100% Correct
the company which assumes the greatest portion of an account - ANSWERLead Company
What is re-insurance - ANSWERan insurance company 'ceding' part of the risk to a re-insurer
What are three considerations used when determining amounts of indemnity? - ANSWERi) Actual
Cash Value of the property as it existed immediately prior to the loss
ii) The interest of the insured in the property
iii) The amount of insurance as shown on the policy
i) Actual Cash Value of the property as it existed prior to the loss
ii) The interest of the insured in the property
iii) The amount of insurance as shown on the policy
Which of the above amounts will be paid in the event of insured losses? - ANSWERInsureds will
receive whichever is the least
