CAIB 2 - Chapter 1 Section 2 Exam with
Accurate Solutions
Package Policies - ANS-A variety of coverages needed by the majority of offices and
small mercantile operations combined under one form.
Manuscript Policies - ANS-Designed for risks having a specialized exposure and for
which no standard coverage form exists.
Reinsurance Guidelines - ANS-1. All Insurers share in both the collection of premiums
and losses incurred.
2. The policy is controlled and losses paid by the primary Insurer.
3. The contract is between the primary Insurer and the Reinsurer.
Subscription Policies - ANS-When a group of Insurers have agreed to share in providing
insurance coverages, they share both the premiums and the losses. Each agreement is
usually required to be negotiated separately.
The Lead Company - ANS-The company which assumes the greater portion of the
liability for loss in a subscription policy.
Minimum Retained Premium - ANS-The amount of premium kept by the Insurer when
the policy is terminated prior to its expiry date.
Indemnity Agreement - ANS-Any insured property lost or damaged by an insured peril,
the Insurer will indemnify the Insured against the direct loss or damage so caused to an
amount not exceeding whichever is the least of the value, the insurable interest, and the
amount of insurance.
Deductible - ANS-The portion of an insured loss to be borne by the Insured before
entitled to recover from the Insurer.
Co-insurance Clause - ANS-Applies separately to each item for which a co-insurance
percentage is specified and only where the amount of loss or damage exceeds the
lesser of 2% or $5000.
Waiver of Co-insurance - ANS-By the terms of this clause, the Insurer agrees that when
the loss of property is less than 2% of the amount of insurance or $5000 the provisions
of the co-insurance clause will not be applied.
Accurate Solutions
Package Policies - ANS-A variety of coverages needed by the majority of offices and
small mercantile operations combined under one form.
Manuscript Policies - ANS-Designed for risks having a specialized exposure and for
which no standard coverage form exists.
Reinsurance Guidelines - ANS-1. All Insurers share in both the collection of premiums
and losses incurred.
2. The policy is controlled and losses paid by the primary Insurer.
3. The contract is between the primary Insurer and the Reinsurer.
Subscription Policies - ANS-When a group of Insurers have agreed to share in providing
insurance coverages, they share both the premiums and the losses. Each agreement is
usually required to be negotiated separately.
The Lead Company - ANS-The company which assumes the greater portion of the
liability for loss in a subscription policy.
Minimum Retained Premium - ANS-The amount of premium kept by the Insurer when
the policy is terminated prior to its expiry date.
Indemnity Agreement - ANS-Any insured property lost or damaged by an insured peril,
the Insurer will indemnify the Insured against the direct loss or damage so caused to an
amount not exceeding whichever is the least of the value, the insurable interest, and the
amount of insurance.
Deductible - ANS-The portion of an insured loss to be borne by the Insured before
entitled to recover from the Insurer.
Co-insurance Clause - ANS-Applies separately to each item for which a co-insurance
percentage is specified and only where the amount of loss or damage exceeds the
lesser of 2% or $5000.
Waiver of Co-insurance - ANS-By the terms of this clause, the Insurer agrees that when
the loss of property is less than 2% of the amount of insurance or $5000 the provisions
of the co-insurance clause will not be applied.
