CAIB 2- Chapter 3 Exam 2025
Questions and Answers
identify the three leading causes of fires in canada - ANSWER✔✔--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 - ANSWER✔✔-
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 - ANSWER✔✔-the policy takes effect
1201 am local time at the insureds address
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 1
, 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? - ANSWER✔✔-the insurer would be called upon to pay the claim
twice
how could your answer differ if the loss payable was not indicated on the policy? - ANSWER✔✔-
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 -
ANSWER✔✔-fire
lightning
explosion of natural, coral or manufactured gas
does the peril of lightning under this form cover DIRECT losses to electrical appliances? -
ANSWER✔✔-no
identify the losses that insurers are NOT liable for by law - ANSWER✔✔-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 - ANSWER✔✔-bakeries\laundaries\machinging and fabricating shops, garages
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 2
Questions and Answers
identify the three leading causes of fires in canada - ANSWER✔✔--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 - ANSWER✔✔-
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 - ANSWER✔✔-the policy takes effect
1201 am local time at the insureds address
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 1
, 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? - ANSWER✔✔-the insurer would be called upon to pay the claim
twice
how could your answer differ if the loss payable was not indicated on the policy? - ANSWER✔✔-
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 -
ANSWER✔✔-fire
lightning
explosion of natural, coral or manufactured gas
does the peril of lightning under this form cover DIRECT losses to electrical appliances? -
ANSWER✔✔-no
identify the losses that insurers are NOT liable for by law - ANSWER✔✔-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 - ANSWER✔✔-bakeries\laundaries\machinging and fabricating shops, garages
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 2
