CAIB 2 Practice Exam Questions with Answers
3 conditions or obligations that insured owed before Replacement Cost Settlement payout is
issued ( Payment after, Diligence ,Site ) - ✔✔1) payment is made after replacement work is
completed
2) replacment work must be done in due diligence and dispatch
3) replacement must be at same site or adjacent site
6 insured duties during a crime loss ( n n 120 s oath securities ) - ✔✔1) notify authority
2) notify insurer
3) prepare proof of crime loss within 120 days of discovery date
4) make statements
5) submit to examine under oath
6) if lost securities involved, must stop all sales, conversion or negotiation of such lost
securities.
7 material facts in insurance application ( previous claims, cancellations, ill-will , liens on
property , other concurrent insurance, vacancy , business use by insured or others ) - ✔✔1)
previous claims
2) previous cancellations
3) ill-will people that might harm insured property if insured knows
4) liens on property, creditors, mortgagees, other payees
5) other concurrent insurance for same insured property
6) vacancy
7) business use by insured or others
3 types of property that are covered by Transportation Floater ( Broad form ) - ✔✔1) owned by
insured
2) property of others which insured is responsible and legally liable
, 3) sold but not delivered
list 5 means of transportation that can be endorsed onto Transportation Floater ( Broad form ) -
✔✔1) all means of transport except ocean marine vessels
2) airlines
3) private, public trucking firms
4) vehicles leased or hired by insured
5) railroads
3 factors that affect transportation insurance premium ( property, means,distance ) - ✔✔1)
nature of property
2) means of transportation including experience of operators
3) distance travelled
3 ways to get funding other than business interruption insurance - ✔✔1) increase product price
2) use own money
3) bank loan
examples of fixed expenses during business interruption - ✔✔1) mortgage interests
2) interests on account payables
3) salaries under contract
4) key personnel and management payroll expense
expenses that insurer will not pay during business interruption - ✔✔1) stock depreciation
3 conditions or obligations that insured owed before Replacement Cost Settlement payout is
issued ( Payment after, Diligence ,Site ) - ✔✔1) payment is made after replacement work is
completed
2) replacment work must be done in due diligence and dispatch
3) replacement must be at same site or adjacent site
6 insured duties during a crime loss ( n n 120 s oath securities ) - ✔✔1) notify authority
2) notify insurer
3) prepare proof of crime loss within 120 days of discovery date
4) make statements
5) submit to examine under oath
6) if lost securities involved, must stop all sales, conversion or negotiation of such lost
securities.
7 material facts in insurance application ( previous claims, cancellations, ill-will , liens on
property , other concurrent insurance, vacancy , business use by insured or others ) - ✔✔1)
previous claims
2) previous cancellations
3) ill-will people that might harm insured property if insured knows
4) liens on property, creditors, mortgagees, other payees
5) other concurrent insurance for same insured property
6) vacancy
7) business use by insured or others
3 types of property that are covered by Transportation Floater ( Broad form ) - ✔✔1) owned by
insured
2) property of others which insured is responsible and legally liable
, 3) sold but not delivered
list 5 means of transportation that can be endorsed onto Transportation Floater ( Broad form ) -
✔✔1) all means of transport except ocean marine vessels
2) airlines
3) private, public trucking firms
4) vehicles leased or hired by insured
5) railroads
3 factors that affect transportation insurance premium ( property, means,distance ) - ✔✔1)
nature of property
2) means of transportation including experience of operators
3) distance travelled
3 ways to get funding other than business interruption insurance - ✔✔1) increase product price
2) use own money
3) bank loan
examples of fixed expenses during business interruption - ✔✔1) mortgage interests
2) interests on account payables
3) salaries under contract
4) key personnel and management payroll expense
expenses that insurer will not pay during business interruption - ✔✔1) stock depreciation
