CAIB 1 - CHAPTER 2 EXAM 180 QUESTIONS
AND CORRECT DETAILED ANSWERS WITH
RATIONALES|ALREADY GRADED A+
IBC wordings - Answers -✔✔ Standard policy wordings used by most insurance
companies as a foundation.
Policy coverages - Answers -✔✔ Specific protections and benefits provided by an
insurance policy.
Competitive advantage - Answers -✔✔ An insurer's strategy to differentiate themselves
from other insurers.
Broaden policy coverages - Answers -✔✔ Expanding the scope of protection provided
by an insurance policy.
Increase limits - Answers -✔✔ Raising the maximum amount an insurance policy will
pay for a covered loss.
Remove exclusions - Answers -✔✔ Eliminating specific situations or conditions that are
not covered by an insurance policy.
Eligibility for Coverage - Answers -✔✔ Criteria that determine if an individual or property
qualifies for insurance coverage.
Dwellings - Answers -✔✔ Buildings that serve as private residences.
Mobile homes - Answers -✔✔ Dwellings that are designed to be movable and are
situated on a full basement.
Dwellings in the course of construction - Answers -✔✔ Buildings that are being built and
will be occupied by the insured upon completion.
Common Format or Structure - Answers -✔✔ Consistent organization and layout of
homeowners insurance forms.
Section 1 - Property Coverages - Answers -✔✔ The part of a homeowners insurance
policy that protects the insured's property.
Section 2 - Liability Coverages - Answers -✔✔ The part of a homeowners insurance
policy that provides liability protection.
, Insured - Answers -✔✔ Individuals named in the insurance policy and their household
members.
Dwelling - Answers -✔✔ The building occupied by the insured as a private residence.
Premises - Answers -✔✔ The land within the lot lines where the dwelling is located.
What does premises mean? - Answers -✔✔ The land contained within the lot lines on
which the dwelling is situated.
What does Coverage A - Dwelling Building include? - Answers -✔✔ The dwelling and
attached structures.
What is the coverage for permanently installed outdoor equipment on the premises? -
Answers -✔✔ Coverage is restricted to the insured's premises.
What is included in Coverage A - Dwelling Building related to outdoor swimming pool? -
Answers -✔✔ Outdoor swimming pool and attached equipment on the premises.
What materials and supplies are covered under Coverage A - Dwelling Building? -
Answers -✔✔ Materials and supplies located on or adjacent to the premises intended
for use in the construction, alteration or repair of your dwelling or private structures on
the premises.
When does theft coverage apply? - Answers -✔✔ Theft coverage applies when the
dwelling is completed and ready to be occupied.
What outdoor items are covered under Coverage A - Dwelling Building? - Answers -✔✔
Outdoor trees, shrubs, and plants.
What is excluded under all IBC homeowners forms regarding outdoor items? - Answers
-✔✔ Lawns are excluded.
What does Coverage B - Detached Private Structures include? - Answers -✔✔ Any
structure or building separated from the dwelling by a clear space.
Give examples of detached private structures. - Answers -✔✔ Detached garage,
detached greenhouse, or fence.
How are structures or buildings connected to the dwelling considered? - Answers -✔✔
They are considered detached structures if connected by a fence, utility line, or similar
connection only.
AND CORRECT DETAILED ANSWERS WITH
RATIONALES|ALREADY GRADED A+
IBC wordings - Answers -✔✔ Standard policy wordings used by most insurance
companies as a foundation.
Policy coverages - Answers -✔✔ Specific protections and benefits provided by an
insurance policy.
Competitive advantage - Answers -✔✔ An insurer's strategy to differentiate themselves
from other insurers.
Broaden policy coverages - Answers -✔✔ Expanding the scope of protection provided
by an insurance policy.
Increase limits - Answers -✔✔ Raising the maximum amount an insurance policy will
pay for a covered loss.
Remove exclusions - Answers -✔✔ Eliminating specific situations or conditions that are
not covered by an insurance policy.
Eligibility for Coverage - Answers -✔✔ Criteria that determine if an individual or property
qualifies for insurance coverage.
Dwellings - Answers -✔✔ Buildings that serve as private residences.
Mobile homes - Answers -✔✔ Dwellings that are designed to be movable and are
situated on a full basement.
Dwellings in the course of construction - Answers -✔✔ Buildings that are being built and
will be occupied by the insured upon completion.
Common Format or Structure - Answers -✔✔ Consistent organization and layout of
homeowners insurance forms.
Section 1 - Property Coverages - Answers -✔✔ The part of a homeowners insurance
policy that protects the insured's property.
Section 2 - Liability Coverages - Answers -✔✔ The part of a homeowners insurance
policy that provides liability protection.
, Insured - Answers -✔✔ Individuals named in the insurance policy and their household
members.
Dwelling - Answers -✔✔ The building occupied by the insured as a private residence.
Premises - Answers -✔✔ The land within the lot lines where the dwelling is located.
What does premises mean? - Answers -✔✔ The land contained within the lot lines on
which the dwelling is situated.
What does Coverage A - Dwelling Building include? - Answers -✔✔ The dwelling and
attached structures.
What is the coverage for permanently installed outdoor equipment on the premises? -
Answers -✔✔ Coverage is restricted to the insured's premises.
What is included in Coverage A - Dwelling Building related to outdoor swimming pool? -
Answers -✔✔ Outdoor swimming pool and attached equipment on the premises.
What materials and supplies are covered under Coverage A - Dwelling Building? -
Answers -✔✔ Materials and supplies located on or adjacent to the premises intended
for use in the construction, alteration or repair of your dwelling or private structures on
the premises.
When does theft coverage apply? - Answers -✔✔ Theft coverage applies when the
dwelling is completed and ready to be occupied.
What outdoor items are covered under Coverage A - Dwelling Building? - Answers -✔✔
Outdoor trees, shrubs, and plants.
What is excluded under all IBC homeowners forms regarding outdoor items? - Answers
-✔✔ Lawns are excluded.
What does Coverage B - Detached Private Structures include? - Answers -✔✔ Any
structure or building separated from the dwelling by a clear space.
Give examples of detached private structures. - Answers -✔✔ Detached garage,
detached greenhouse, or fence.
How are structures or buildings connected to the dwelling considered? - Answers -✔✔
They are considered detached structures if connected by a fence, utility line, or similar
connection only.
