CAIB 2 - CHAPTER 2 EXAM 2025
QUESTIONS AND ANSWERS
A proposal for insurance that's presented to the underwriter for consideration. It can include an
application, and additional verbal and written information (i.e., previous policy premium, loss details
and history, financial statements and photos). - ANSWER✔✔-"Submission."
1) Assists to identify loss exposures;
2) Helps eliminate purchase of coverage that isn't needed;
3) Assists in development of underwriting information the insurer needs. - ANSWER✔✔-Three
purposes of survey forms.
1) Alerts broker to possible loss exposures;
2) Ensures needed coverages are not overlooked;
2) Helps reduce potential for an E&O claim. - ANSWER✔✔-Three advantages of using a property
checklist with clients.
Frame. - ANSWER✔✔-The type of commercial building construction that's likely to produce the
highest insurance rate.
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 1
, Fire resistive. - ANSWER✔✔-The type of commercial building construction that's likely to produce
the lowest insurance rate.
25 years or older. - ANSWER✔✔-The age a building has to be for an insurer to request information
about recent renovations or upgrading.
1) Roof;
2) Wiring;
3) Over-current protection;
4) Plumbing;
5) Heating. - ANSWER✔✔-The five kinds of building upgrades to a building that are likely of most
interest to insurers.
1) Heating;
2) Electrical services;
3) Detachment;
4) Protection;
5) Occupancy. - ANSWER✔✔-Five hazards common to most commercial property risks.
Because the proximity to other commercial buildings can increase the risk. - ANSWER✔✔-Why the
distance or detachment from other commercial risks is an important rating consideration.
1) Private protection - what the insured has done to prevent or reduce loss;
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 2
QUESTIONS AND ANSWERS
A proposal for insurance that's presented to the underwriter for consideration. It can include an
application, and additional verbal and written information (i.e., previous policy premium, loss details
and history, financial statements and photos). - ANSWER✔✔-"Submission."
1) Assists to identify loss exposures;
2) Helps eliminate purchase of coverage that isn't needed;
3) Assists in development of underwriting information the insurer needs. - ANSWER✔✔-Three
purposes of survey forms.
1) Alerts broker to possible loss exposures;
2) Ensures needed coverages are not overlooked;
2) Helps reduce potential for an E&O claim. - ANSWER✔✔-Three advantages of using a property
checklist with clients.
Frame. - ANSWER✔✔-The type of commercial building construction that's likely to produce the
highest insurance rate.
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 1
, Fire resistive. - ANSWER✔✔-The type of commercial building construction that's likely to produce
the lowest insurance rate.
25 years or older. - ANSWER✔✔-The age a building has to be for an insurer to request information
about recent renovations or upgrading.
1) Roof;
2) Wiring;
3) Over-current protection;
4) Plumbing;
5) Heating. - ANSWER✔✔-The five kinds of building upgrades to a building that are likely of most
interest to insurers.
1) Heating;
2) Electrical services;
3) Detachment;
4) Protection;
5) Occupancy. - ANSWER✔✔-Five hazards common to most commercial property risks.
Because the proximity to other commercial buildings can increase the risk. - ANSWER✔✔-Why the
distance or detachment from other commercial risks is an important rating consideration.
1) Private protection - what the insured has done to prevent or reduce loss;
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 2
