CAIB 2: CHAPTER 4 Exam Questions
With 100% Accurate Answers Scored A+
Define endorsement - CORRECT ANSWER-Endorsements change terms of existing
policies
Define rider - CORRECT ANSWER-Riders add additional coverages to the policy
Indicate covered or not covered on sign form (C/NC)
a) mechanical breakdown
b) damage caused by power surge
c) damage caused when dropped during installation
d) damage caused by freezing
e) damage caused by striking employees - CORRECT ANSWER--nc
-nc
-nc
-nc
-nc
What values are insured on a glass rider? - CORRECT ANSWER--glass -artwork on
glass -tape and foil on glass
When would tenants require Glass Riders? - CORRECT ANSWER-tenants may require
glass coverage when they have assumed responsibility for damage to glass in a lease
What type of information is required by underwriters when insuring glass on a
scheduled basis? - CORRECT ANSWER--type, size and number of glass units
-location of glass
-information of any lettering, tape, foil or ornamentation
, What are two factors relating to location, which may influence glass rider premiums? -
CORRECT ANSWER--interior or exterior
-level located on building
List 3 examples of losses insured by glass riders - CORRECT ANSWER--employee
breaks glass while carrying lumber into store
-customer breaks glass with floor lamp they just purchased while leaving the store
-glass breaks as a result of settling of buildings foundation
Indicate covered or not covered under glass riders: (C/NC)
a) glass broken during construction
b) glass broken during repairs to window frame
c) glass damage when building is vacant, unoccupied, or shut down for more than 30
consecutive days - CORRECT ANSWER--nc
-nc
-nc
What are four coverages provided by the accounts receivable form and provide an
example of each - CORRECT ANSWER--loss due to inability to collect amounts: client
cannot remember list of customers who have an outstanding amount due to your client
-interest incurred due to delay: money owed to suppliers must be paid prior to.
settlement with insurer
-extra collection costs incurred: amounts paid to collection agencies
-other expenses needed to re-make the records: hiring an accountant
What is the requirement of insurers when accounts receivable records are not in use
and the premises are closed? - CORRECT ANSWER-When records are not in use or
when premises is closed, accounts receivable records must be stored in described
receptacle
With 100% Accurate Answers Scored A+
Define endorsement - CORRECT ANSWER-Endorsements change terms of existing
policies
Define rider - CORRECT ANSWER-Riders add additional coverages to the policy
Indicate covered or not covered on sign form (C/NC)
a) mechanical breakdown
b) damage caused by power surge
c) damage caused when dropped during installation
d) damage caused by freezing
e) damage caused by striking employees - CORRECT ANSWER--nc
-nc
-nc
-nc
-nc
What values are insured on a glass rider? - CORRECT ANSWER--glass -artwork on
glass -tape and foil on glass
When would tenants require Glass Riders? - CORRECT ANSWER-tenants may require
glass coverage when they have assumed responsibility for damage to glass in a lease
What type of information is required by underwriters when insuring glass on a
scheduled basis? - CORRECT ANSWER--type, size and number of glass units
-location of glass
-information of any lettering, tape, foil or ornamentation
, What are two factors relating to location, which may influence glass rider premiums? -
CORRECT ANSWER--interior or exterior
-level located on building
List 3 examples of losses insured by glass riders - CORRECT ANSWER--employee
breaks glass while carrying lumber into store
-customer breaks glass with floor lamp they just purchased while leaving the store
-glass breaks as a result of settling of buildings foundation
Indicate covered or not covered under glass riders: (C/NC)
a) glass broken during construction
b) glass broken during repairs to window frame
c) glass damage when building is vacant, unoccupied, or shut down for more than 30
consecutive days - CORRECT ANSWER--nc
-nc
-nc
What are four coverages provided by the accounts receivable form and provide an
example of each - CORRECT ANSWER--loss due to inability to collect amounts: client
cannot remember list of customers who have an outstanding amount due to your client
-interest incurred due to delay: money owed to suppliers must be paid prior to.
settlement with insurer
-extra collection costs incurred: amounts paid to collection agencies
-other expenses needed to re-make the records: hiring an accountant
What is the requirement of insurers when accounts receivable records are not in use
and the premises are closed? - CORRECT ANSWER-When records are not in use or
when premises is closed, accounts receivable records must be stored in described
receptacle
