1/18/26, 12:08 PM CAIB 1 Practice Questions (100) EXAM (updated 2026) Questions & Answers | Latest Already Graded A+ UPDATE |2026 Flashca…
CAIB 1 Practice Questions (100) EXAM (updated
2026) Questions & Answers | Latest Already
Graded A+ UPDATE |2026
Save
Terms in this set (100)
Consideration is... d. An exchange of something of value
a. The law of insurance
b. A promise between parties
c. A contract's binding force
d. An exchange of something of
value
A stock company is... b. A company owned by stockholders who provide
a. A company that invests in other the capital to start and run the company
companies
b. A company owned by
stockholders who provide the capital
to start and run the company
c. Is owned by customers of the
company
d. A company that owns livestock
https://quizlet.com/1132126918/caib-1-practice-questions-100-exam-updated-2026-questions-answers-latest-already-graded-a-update-2026-flash-car… 1/23
,1/18/26, 12:08 PM CAIB 1 Practice Questions (100) EXAM (updated 2026) Questions & Answers | Latest Already Graded A+ UPDATE |2026 Flashca…
The difference between pure and b. Speculative risk means that there is a chance to
speculative risk is... gain or lose whereas one can only lose with pure
a. Speculative risk is insurable but risk
pure risk is not
b. Speculative risk means that there is
a chance to gain or lose whereas
one can only lose with pure risk
c. Speculative risk means that there is
only the chance to lose whereas
pure risk means you have a chance
to win too
d. Speculative risk is a term invented
by marine insurance companies in
1864
A legally enforceable agreement a. A contract
between 2 or more parties is defined
as...
a. A contract
b. An agreement
c. A will
d. A contract of consideration
What are the 4 methods of dealing Avoidance,
with risk? control,
retention,
transfer
https://quizlet.com/1132126918/caib-1-practice-questions-100-exam-updated-2026-questions-answers-latest-already-graded-a-update-2026-flash-car… 2/23
, 1/18/26, 12:08 PM CAIB 1 Practice Questions (100) EXAM (updated 2026) Questions & Answers | Latest Already Graded A+ UPDATE |2026 Flashca…
A reduction in value is called a... a. Loss
a. Loss
b. Unlucky situation
c. Claim
d. Transfer
What elements must be present to c. Agreement, consideration, legality of object,
constitute a legal contract? legal capacity, genuine intention
a. Parties to the contract, the
contract itself, consideration
b. Parties to the contract, a written
document, consideration, and legal
purpose
c. Agreement, consideration, legality
of object, legal capacity, genuine
intention
d. Competent parties, consideration,
warranty, and legal purpose
The act of intentionally giving up c. A waiver
some right or privilege is...
a. A representation
b. A transfer
c. A waiver
d. Subrogation
Insurance purchased by an insurance a. Reinsurance
company is called
a. Reinsurance
b. Risk avoidance insurance
c. Full protection
d. Umbrella insurance
https://quizlet.com/1132126918/caib-1-practice-questions-100-exam-updated-2026-questions-answers-latest-already-graded-a-update-2026-flash-car… 3/23
CAIB 1 Practice Questions (100) EXAM (updated
2026) Questions & Answers | Latest Already
Graded A+ UPDATE |2026
Save
Terms in this set (100)
Consideration is... d. An exchange of something of value
a. The law of insurance
b. A promise between parties
c. A contract's binding force
d. An exchange of something of
value
A stock company is... b. A company owned by stockholders who provide
a. A company that invests in other the capital to start and run the company
companies
b. A company owned by
stockholders who provide the capital
to start and run the company
c. Is owned by customers of the
company
d. A company that owns livestock
https://quizlet.com/1132126918/caib-1-practice-questions-100-exam-updated-2026-questions-answers-latest-already-graded-a-update-2026-flash-car… 1/23
,1/18/26, 12:08 PM CAIB 1 Practice Questions (100) EXAM (updated 2026) Questions & Answers | Latest Already Graded A+ UPDATE |2026 Flashca…
The difference between pure and b. Speculative risk means that there is a chance to
speculative risk is... gain or lose whereas one can only lose with pure
a. Speculative risk is insurable but risk
pure risk is not
b. Speculative risk means that there is
a chance to gain or lose whereas
one can only lose with pure risk
c. Speculative risk means that there is
only the chance to lose whereas
pure risk means you have a chance
to win too
d. Speculative risk is a term invented
by marine insurance companies in
1864
A legally enforceable agreement a. A contract
between 2 or more parties is defined
as...
a. A contract
b. An agreement
c. A will
d. A contract of consideration
What are the 4 methods of dealing Avoidance,
with risk? control,
retention,
transfer
https://quizlet.com/1132126918/caib-1-practice-questions-100-exam-updated-2026-questions-answers-latest-already-graded-a-update-2026-flash-car… 2/23
, 1/18/26, 12:08 PM CAIB 1 Practice Questions (100) EXAM (updated 2026) Questions & Answers | Latest Already Graded A+ UPDATE |2026 Flashca…
A reduction in value is called a... a. Loss
a. Loss
b. Unlucky situation
c. Claim
d. Transfer
What elements must be present to c. Agreement, consideration, legality of object,
constitute a legal contract? legal capacity, genuine intention
a. Parties to the contract, the
contract itself, consideration
b. Parties to the contract, a written
document, consideration, and legal
purpose
c. Agreement, consideration, legality
of object, legal capacity, genuine
intention
d. Competent parties, consideration,
warranty, and legal purpose
The act of intentionally giving up c. A waiver
some right or privilege is...
a. A representation
b. A transfer
c. A waiver
d. Subrogation
Insurance purchased by an insurance a. Reinsurance
company is called
a. Reinsurance
b. Risk avoidance insurance
c. Full protection
d. Umbrella insurance
https://quizlet.com/1132126918/caib-1-practice-questions-100-exam-updated-2026-questions-answers-latest-already-graded-a-update-2026-flash-car… 3/23
