CAIB 2 Practice Exam Questions with Answers
Accommodation Business - ✔✔Substandard risks taken on by underwriters as a favour to the
broker
Actual Cash Value - ✔✔Replacement cost minus depreciation
Actual Loss Sustained - ✔✔(Business Interruption) Loss of income that you would have earned
otherwise had the business interruption not occurred
Adverse Selection - ✔✔When an underwriter picks a poor risk (either too risky or unprofitable.
All Property - ✔✔Coverage where all property owned by the insured is covered under 1 limit.
Note: can even extend to cover multiple locations and still subject to exclusions.
Area Protection - ✔✔Used to restrict unauthorized access to certain areas (protects the
interior)
Bailee for Hire - ✔✔Someone who has custody of the property of others for purpose other than
sale
Burglary - ✔✔The unlawful taking of property by someone illegally entering or leaving the
premises with evidence of forced entry or exit
Catastrophe Limit - ✔✔The maximum payable on any 1 occurrence
Centrifugal Force - ✔✔The tendency of an object to move away from its center rotation.
, Common Carrier - ✔✔Someone who carries goods for the general pubic
Common Hazards - ✔✔Hazards common to all buildings
Condition - ✔✔A requirement to do or not do something
Contract Carrier - ✔✔Carriers, for compensation the goods of their customers only
Contributing Property - ✔✔A major supplier/manufacturer that your business depends on for
continued operation.
*Note* if the contributing property has a loss it may affect your business' ability to continue
operations.
Custodian - ✔✔Insured, partner or their employee authorized to have custody of insured
property excluding guards, janitors, porters or watchman.
Data - ✔✔Information stored on media
Detachment - ✔✔Proximity to nearby commercial exposures (buildings)
Discovery Period - ✔✔The time starting after policy expiry that the insured has to discover a
claim for it to be covered under the policy
Electrical Breakdown - ✔✔The failure of an electrical component
Electronic Protection - ✔✔Electronic barriers to restrict unauthorized access
Accommodation Business - ✔✔Substandard risks taken on by underwriters as a favour to the
broker
Actual Cash Value - ✔✔Replacement cost minus depreciation
Actual Loss Sustained - ✔✔(Business Interruption) Loss of income that you would have earned
otherwise had the business interruption not occurred
Adverse Selection - ✔✔When an underwriter picks a poor risk (either too risky or unprofitable.
All Property - ✔✔Coverage where all property owned by the insured is covered under 1 limit.
Note: can even extend to cover multiple locations and still subject to exclusions.
Area Protection - ✔✔Used to restrict unauthorized access to certain areas (protects the
interior)
Bailee for Hire - ✔✔Someone who has custody of the property of others for purpose other than
sale
Burglary - ✔✔The unlawful taking of property by someone illegally entering or leaving the
premises with evidence of forced entry or exit
Catastrophe Limit - ✔✔The maximum payable on any 1 occurrence
Centrifugal Force - ✔✔The tendency of an object to move away from its center rotation.
, Common Carrier - ✔✔Someone who carries goods for the general pubic
Common Hazards - ✔✔Hazards common to all buildings
Condition - ✔✔A requirement to do or not do something
Contract Carrier - ✔✔Carriers, for compensation the goods of their customers only
Contributing Property - ✔✔A major supplier/manufacturer that your business depends on for
continued operation.
*Note* if the contributing property has a loss it may affect your business' ability to continue
operations.
Custodian - ✔✔Insured, partner or their employee authorized to have custody of insured
property excluding guards, janitors, porters or watchman.
Data - ✔✔Information stored on media
Detachment - ✔✔Proximity to nearby commercial exposures (buildings)
Discovery Period - ✔✔The time starting after policy expiry that the insured has to discover a
claim for it to be covered under the policy
Electrical Breakdown - ✔✔The failure of an electrical component
Electronic Protection - ✔✔Electronic barriers to restrict unauthorized access
