CAIB 2 Top-Rated Exam Questions &
Answers Newest Version 2024
Your client, a retail fashion store, has just rented a business premises in a mall. Before
opening your business, she plans to install new wall to wall carpeting and install wall
paneling. These values would be insured under the amount provided for:
A. Stock
B. Equipment
C. Building
D. Business Interruption - CORRECT ANSWER-B. Equipment
While the law permits the insurer to surrogate against the party responsible for the loss,
the insurer agrees not to exercise that right in respect to certain parties under the policy.
Which of the following parties would be surrogates agains in the event of their
responsibility?
A. insureds business partner
B. Mortgagee
C. Parents who provide financing
D. Independent contractor - CORRECT ANSWER-D. Independent contractor
The commercial building, equipment and stock (broad form policy) insures all of the
following except:
A. Theft or attempted theft
B. Rupture of freezing
C. Collapse
D. Mysterious disappearance - CORRECT ANSWER-D. Mysterious disappearance
,Under a commercial property insurance policy, which of the following would be
considered equipment?
A. Photocopier leased from ideal copiers
B. Advertising brochures promoting next months end sales
C. Customers shoes kept on premises overnight for repair
D. Shoes held on consignment - CORRECT ANSWER-A. Photocopier leased from ideal
copiers
The consequential loss assumption clauses is defined to insured:
A. Damage caused to refrigerator or cooling equipment
B. Damage caused by freezing due to power failure
C. Loss to stock due to loss of temperature
D. Contamination of stock due to rupture of supply piping - CORRECT ANSWER-C.
Loss to stock due to loss of temperature
The coverages provided by the coverages provided by the contractors equipment floater
would insured which of the following losses?
A. Damage caused to front end loader due to freezing
B. Cracking of engine block on caterpillar due to freezing
C. Fire damage to contractors plans, blueprints, design or specifications
D. Sinking of caterpillar while operating over muskeg - CORRECT ANSWER-A.
Damage caused to front end loader due to freezing
The safe burglary rider would insure one of the following losses:
A. Money taken from locked cash drawer
B. Money and securities taken from an unlocked safe
C. Money and securities taken from a locked safe by the burglar who knew its
combination
D. Removal of the safe from the premises - CORRECT ANSWER-D. Removal of the
safe from the premises
, The insurance industry relies on the classifications developed by the following body
when determining the appropriateness of the protection provided to property by
safes,vaults and other:
A. IAO
B. ULC
C. IBC
D. Canada Safety Council - CORRECT ANSWER-B. ULC
All of the following statements except one are true when the insureds business has
been interrupted by order of civil authority. Pick the exception:
A. Insured's building must have suffered physical damage
B. Coverage is limited to a maximum of two weeks
C. Insured is entitled to recover lost income even through there has been no actual
damage to the insured property
D. Order must have been given as a direct result of damage to neighbouring premises
by a peril insured against on the insureds own premises - CORRECT ANSWER-A.
Insureds business must have suffered physical damage
Accommodation business is best described as:
A. A specialized type of insurance risk which included hotels, motels, apartment
buildings and rental property
B. A risk which can be insured only under a subscription policy
C. A risk which is substandard or marginal, but which, because of its relationship with
the broker, the insurer agrees to to underwrite
D. A risk which is normally acceptable to the insurer but which cannot be bound by the
broker without the insurers consent - CORRECT ANSWER-C. A risk which is
substandard or marginal, but which, because of its relationship with the broker, the
insurer agrees to underwrite
The accounts receivable form would not provide payment for:
A. Penalties charged the insured by suppliers for late payment of account
B. Sum charged by insureds accountant to reconstruct lost records
C. Sums charged by collector agency to collect amounts due to insured
Answers Newest Version 2024
Your client, a retail fashion store, has just rented a business premises in a mall. Before
opening your business, she plans to install new wall to wall carpeting and install wall
paneling. These values would be insured under the amount provided for:
A. Stock
B. Equipment
C. Building
D. Business Interruption - CORRECT ANSWER-B. Equipment
While the law permits the insurer to surrogate against the party responsible for the loss,
the insurer agrees not to exercise that right in respect to certain parties under the policy.
Which of the following parties would be surrogates agains in the event of their
responsibility?
A. insureds business partner
B. Mortgagee
C. Parents who provide financing
D. Independent contractor - CORRECT ANSWER-D. Independent contractor
The commercial building, equipment and stock (broad form policy) insures all of the
following except:
A. Theft or attempted theft
B. Rupture of freezing
C. Collapse
D. Mysterious disappearance - CORRECT ANSWER-D. Mysterious disappearance
,Under a commercial property insurance policy, which of the following would be
considered equipment?
A. Photocopier leased from ideal copiers
B. Advertising brochures promoting next months end sales
C. Customers shoes kept on premises overnight for repair
D. Shoes held on consignment - CORRECT ANSWER-A. Photocopier leased from ideal
copiers
The consequential loss assumption clauses is defined to insured:
A. Damage caused to refrigerator or cooling equipment
B. Damage caused by freezing due to power failure
C. Loss to stock due to loss of temperature
D. Contamination of stock due to rupture of supply piping - CORRECT ANSWER-C.
Loss to stock due to loss of temperature
The coverages provided by the coverages provided by the contractors equipment floater
would insured which of the following losses?
A. Damage caused to front end loader due to freezing
B. Cracking of engine block on caterpillar due to freezing
C. Fire damage to contractors plans, blueprints, design or specifications
D. Sinking of caterpillar while operating over muskeg - CORRECT ANSWER-A.
Damage caused to front end loader due to freezing
The safe burglary rider would insure one of the following losses:
A. Money taken from locked cash drawer
B. Money and securities taken from an unlocked safe
C. Money and securities taken from a locked safe by the burglar who knew its
combination
D. Removal of the safe from the premises - CORRECT ANSWER-D. Removal of the
safe from the premises
, The insurance industry relies on the classifications developed by the following body
when determining the appropriateness of the protection provided to property by
safes,vaults and other:
A. IAO
B. ULC
C. IBC
D. Canada Safety Council - CORRECT ANSWER-B. ULC
All of the following statements except one are true when the insureds business has
been interrupted by order of civil authority. Pick the exception:
A. Insured's building must have suffered physical damage
B. Coverage is limited to a maximum of two weeks
C. Insured is entitled to recover lost income even through there has been no actual
damage to the insured property
D. Order must have been given as a direct result of damage to neighbouring premises
by a peril insured against on the insureds own premises - CORRECT ANSWER-A.
Insureds business must have suffered physical damage
Accommodation business is best described as:
A. A specialized type of insurance risk which included hotels, motels, apartment
buildings and rental property
B. A risk which can be insured only under a subscription policy
C. A risk which is substandard or marginal, but which, because of its relationship with
the broker, the insurer agrees to to underwrite
D. A risk which is normally acceptable to the insurer but which cannot be bound by the
broker without the insurers consent - CORRECT ANSWER-C. A risk which is
substandard or marginal, but which, because of its relationship with the broker, the
insurer agrees to underwrite
The accounts receivable form would not provide payment for:
A. Penalties charged the insured by suppliers for late payment of account
B. Sum charged by insureds accountant to reconstruct lost records
C. Sums charged by collector agency to collect amounts due to insured
