CAIB 2- Chapter 3 Exam 2025
Questions and Answers 100% Pass
identify the three leading causes of fires in canada - ✔✔-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 -
✔✔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 - ✔✔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? - ✔✔the insurer would be called upon to pay
the claim twice
COPYRIGHT © 2025 BY SOPHIA BENNETT, ALL RIGHTS RESERVED 1
, how could your answer differ if the loss payable was not indicated on the policy? -
✔✔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 - ✔✔fire
lightning
explosion of natural, coral or manufactured gas
does the peril of lightning under this form cover DIRECT losses to electrical appliances?
- ✔✔no
identify the losses that insurers are NOT liable for by law - ✔✔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 - ✔✔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 - ✔✔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
COPYRIGHT © 2025 BY SOPHIA BENNETT, ALL RIGHTS RESERVED 2
Questions and Answers 100% Pass
identify the three leading causes of fires in canada - ✔✔-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 -
✔✔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 - ✔✔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? - ✔✔the insurer would be called upon to pay
the claim twice
COPYRIGHT © 2025 BY SOPHIA BENNETT, ALL RIGHTS RESERVED 1
, how could your answer differ if the loss payable was not indicated on the policy? -
✔✔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 - ✔✔fire
lightning
explosion of natural, coral or manufactured gas
does the peril of lightning under this form cover DIRECT losses to electrical appliances?
- ✔✔no
identify the losses that insurers are NOT liable for by law - ✔✔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 - ✔✔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 - ✔✔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
COPYRIGHT © 2025 BY SOPHIA BENNETT, ALL RIGHTS RESERVED 2
