CAIB 2 Chapter 1 Practice exam 1
Questions & Answers Scored A+
Explain what it means to issue insurance on a scheduled basis - CORRECT ANSWER-
Only the property listed or scheduled on the policy is insured
Explain what is meant to issue insurance on the basis of Property of Every Description -
CORRECT ANSWER-Building, stock and equipment are insured under a single limit of
insurance
Explain what it means to issue insurance on an all property (blanket) basis - CORRECT
ANSWER-All property owned by the insured is insured under a single limit of insurance.
All property blanket may insure property at more than one location
In commercial property policies, identify six components used to define a building -
CORRECT ANSWER-1) Building described on the declaration page
2) Fixed structures pertaining to the building and located on the premises
3) Additions and extensions communicating and in contact with the building
5) Materials, equipment and supplies on the premises for maintenance of, and normal
repairs and minor alterations to the building or for building services
6) Growing plants, trees, shrubs or flowers inside the building used for decorative
purposes when the insured is the owner of the building
In Commercial policies, identify three components used to define stock - CORRECT
ANSWER-Merchandise of every description usual to the insured's business
2) Packing, wrapping and advertising materials
3) similar property belonging to others which the insured is under obligation to keep
insured or for which he is legally liable
In commercial policies, identify three component used to define equipment - CORRECT
ANSWER-1) Generally all contents usual to the insured's business other than building
or stock as herein defined
Questions & Answers Scored A+
Explain what it means to issue insurance on a scheduled basis - CORRECT ANSWER-
Only the property listed or scheduled on the policy is insured
Explain what is meant to issue insurance on the basis of Property of Every Description -
CORRECT ANSWER-Building, stock and equipment are insured under a single limit of
insurance
Explain what it means to issue insurance on an all property (blanket) basis - CORRECT
ANSWER-All property owned by the insured is insured under a single limit of insurance.
All property blanket may insure property at more than one location
In commercial property policies, identify six components used to define a building -
CORRECT ANSWER-1) Building described on the declaration page
2) Fixed structures pertaining to the building and located on the premises
3) Additions and extensions communicating and in contact with the building
5) Materials, equipment and supplies on the premises for maintenance of, and normal
repairs and minor alterations to the building or for building services
6) Growing plants, trees, shrubs or flowers inside the building used for decorative
purposes when the insured is the owner of the building
In Commercial policies, identify three components used to define stock - CORRECT
ANSWER-Merchandise of every description usual to the insured's business
2) Packing, wrapping and advertising materials
3) similar property belonging to others which the insured is under obligation to keep
insured or for which he is legally liable
In commercial policies, identify three component used to define equipment - CORRECT
ANSWER-1) Generally all contents usual to the insured's business other than building
or stock as herein defined
