CAIB 2- Chapter 3 Exam Questions &
Answers Latest Update 2024/2025
Guarantee Pass
identify the three leading causes of fires in canada - CORRECT ANSWER--failure or
malfunction of mechanical or electrical equipment
-arson, suspected arson and other set fires
-misuse of source of ignition
Identify what information is required by law to appear on all insurance policies -
CORRECT ANSWER-names of parties to the contract
policy period\loss payable or payee
summary of insurance coverage
rate and premium charged
subject matter of insurance
identify the 'policy period' shown on the declarations page - CORRECT ANSWER-the
policy takes effect 1201 am local time at the insureds address
what could happen if an insurer paid the entire amount of a claim to the client when a
'loss payable' was indicated on the policy? - CORRECT ANSWER-the insurer would be
called upon to pay the claim twice
how could your answer differ if the loss payable was not indicated on the policy? -
CORRECT ANSWER-when the payee is not stated on the policy and payment of a loss
is paid in full to the insured, there is no obligation upon the insurer to indemnify the
payee
The IFC 10010 is designed to meet the requirements of the insurance acts of the
common law provinces. identify the three perils to be included by law in any contract of
fire insurance - CORRECT ANSWER-fire
, lightning
explosion of natural, coral or manufactured gas
does the peril of lightning under this form cover DIRECT losses to electrical appliances?
- CORRECT ANSWER-no
identify the losses that insurers are NOT liable for by law - CORRECT ANSWER-loss or
damage to electrical devices, appliances or wiring caused by artificially generated
electrical currents.
loss or damage by the application of heat.
loss or damage caused by war
trade losses are NOT required to be insured by law. identify three types of businesses
that may suffer a trade loss - CORRECT ANSWER-bakeries\laundaries\machinging and
fabricating shops, garages
certain property losses are NOT required to be nsured by law. identify the four groups of
property exluded - CORRECT ANSWER-money, securities, stamps
automobiles, watercraft, aircraft
property at locations which the knowledge of the insured are vacant, unoccupied, or
shut down for more than 30 consecutive days
any additional costs as a result of a by-law, incurred by the insured is NOT covered
under the policy. identify any three such costs that may be incurred by the insured. -
CORRECT ANSWER-use of improved construction materials
installation of automatic fire estinguishing systems
installation of wheelchair, ramps, and improved accessibility features for the
handicapped
identify two extensions of coverage required by law to be in a fire policy - CORRECT
ANSWER-removal
debris removal
Answers Latest Update 2024/2025
Guarantee Pass
identify the three leading causes of fires in canada - CORRECT ANSWER--failure or
malfunction of mechanical or electrical equipment
-arson, suspected arson and other set fires
-misuse of source of ignition
Identify what information is required by law to appear on all insurance policies -
CORRECT ANSWER-names of parties to the contract
policy period\loss payable or payee
summary of insurance coverage
rate and premium charged
subject matter of insurance
identify the 'policy period' shown on the declarations page - CORRECT ANSWER-the
policy takes effect 1201 am local time at the insureds address
what could happen if an insurer paid the entire amount of a claim to the client when a
'loss payable' was indicated on the policy? - CORRECT ANSWER-the insurer would be
called upon to pay the claim twice
how could your answer differ if the loss payable was not indicated on the policy? -
CORRECT ANSWER-when the payee is not stated on the policy and payment of a loss
is paid in full to the insured, there is no obligation upon the insurer to indemnify the
payee
The IFC 10010 is designed to meet the requirements of the insurance acts of the
common law provinces. identify the three perils to be included by law in any contract of
fire insurance - CORRECT ANSWER-fire
, lightning
explosion of natural, coral or manufactured gas
does the peril of lightning under this form cover DIRECT losses to electrical appliances?
- CORRECT ANSWER-no
identify the losses that insurers are NOT liable for by law - CORRECT ANSWER-loss or
damage to electrical devices, appliances or wiring caused by artificially generated
electrical currents.
loss or damage by the application of heat.
loss or damage caused by war
trade losses are NOT required to be insured by law. identify three types of businesses
that may suffer a trade loss - CORRECT ANSWER-bakeries\laundaries\machinging and
fabricating shops, garages
certain property losses are NOT required to be nsured by law. identify the four groups of
property exluded - CORRECT ANSWER-money, securities, stamps
automobiles, watercraft, aircraft
property at locations which the knowledge of the insured are vacant, unoccupied, or
shut down for more than 30 consecutive days
any additional costs as a result of a by-law, incurred by the insured is NOT covered
under the policy. identify any three such costs that may be incurred by the insured. -
CORRECT ANSWER-use of improved construction materials
installation of automatic fire estinguishing systems
installation of wheelchair, ramps, and improved accessibility features for the
handicapped
identify two extensions of coverage required by law to be in a fire policy - CORRECT
ANSWER-removal
debris removal
