CAIB 2 - CHAPTER 3 (from IBABC)
Exam-Graded A
1) Failure or malfunction of mechanical or electrical equipment;
2) Arson;
3) Misuse of ignition source. - ANS-The three leading causes of fire losses in Canada.
Policy period takes effect at 12:01 a.m. standard time at the address of the Named
Insured as stated on the policy. - ANS-The policy-period start that's applicable to most
commercial property policies.
The insurer is liable to that party, meaning that it may have to pay the claim twice. -
ANS-This happens when an additional payee is named on the policy and the insurer
makes full loss payment to the insured.
They don't want to divulge their rates to competitors. - ANS-The reason why insurers
don't provide breakdowns of coverage rates.
Direct loss or damage from fire, lightning and explosion of natural, coal or manufactured
gas. - ANS-Provincial legislation requires that policies insuring against the peril of fire
must include all of these coverages.
Vacancy, unoccupancy and when premises are shut down. - ANS-These conditions
increase the physical hazard for which coverage is excluded by the Fire Policy.
Any increase in the costs to rebuild, repair or replace the insured's building after a loss
that are incurred to comply with a law or by-law are not insured. - ANS-Summary of the
by-laws exclusion.
Failure in the working mechanism of the machinery; a functional defect in the moving
parts of the equipment that causes the equipment to stop functioning or to function
improperly. - ANS-"Mechanical breakdown."
A failure in the electrical mechanism of the machinery, appliance or device. -
ANS-"Electrical breakdown."
Types of losses that might be expected as a part of the everyday operation of a
business. - ANS-"Trade losses."
Exam-Graded A
1) Failure or malfunction of mechanical or electrical equipment;
2) Arson;
3) Misuse of ignition source. - ANS-The three leading causes of fire losses in Canada.
Policy period takes effect at 12:01 a.m. standard time at the address of the Named
Insured as stated on the policy. - ANS-The policy-period start that's applicable to most
commercial property policies.
The insurer is liable to that party, meaning that it may have to pay the claim twice. -
ANS-This happens when an additional payee is named on the policy and the insurer
makes full loss payment to the insured.
They don't want to divulge their rates to competitors. - ANS-The reason why insurers
don't provide breakdowns of coverage rates.
Direct loss or damage from fire, lightning and explosion of natural, coal or manufactured
gas. - ANS-Provincial legislation requires that policies insuring against the peril of fire
must include all of these coverages.
Vacancy, unoccupancy and when premises are shut down. - ANS-These conditions
increase the physical hazard for which coverage is excluded by the Fire Policy.
Any increase in the costs to rebuild, repair or replace the insured's building after a loss
that are incurred to comply with a law or by-law are not insured. - ANS-Summary of the
by-laws exclusion.
Failure in the working mechanism of the machinery; a functional defect in the moving
parts of the equipment that causes the equipment to stop functioning or to function
improperly. - ANS-"Mechanical breakdown."
A failure in the electrical mechanism of the machinery, appliance or device. -
ANS-"Electrical breakdown."
Types of losses that might be expected as a part of the everyday operation of a
business. - ANS-"Trade losses."
