CAIB 3 PRACTICE EXAM 2026 TEST PAPER
QUESTIONS AND SOLUTIONS GRADED A+
⩥ Outline the purpose of the OPCF 20 Endorsement. Answer: To
recover Expenses incurred on -
a) rental of substitute automobile
b) Taxicabs or public means of transportation
⩥ When your client has $1M in TPL and gets into an accident with a
third party who carrier $200,000 in TPL. How much will this allow her
policy to pay out for a max loss of $1M. Answer: $800,000
⩥ Most rental agencies attempt to sell Sally the full range of automobile
insurance coverages. Identify the two (2) coverages provided by all
insurance policies which extend rental automobiles.. Answer: Third
Party Liability and Accident Benefits
⩥ When automobiles owned by the insured's employee are used in the
business, the employer has a non-owned automobile liability exposure.
Indicate the automobile insurance policy which can be purchased by
employers to insure this exposure. And name another method of
providing this coverage to business owners.. Answer: SPF6 Non-Owned
Auto Liability and a CGL policy is an alternative.
,⩥ Covered or Not Covered Under the OAP1: Automobile is being used
to transport tourists on local tours. Answer: Not Covered: Sight seeing
conveyance is excluded.
⩥ Covered or Not Covered Under the OAP1: Automobile is being used
transport prospective buyers to real estate development located 30 kms.
From the insured's office.. Answer: Covered: Carriage of clients or
prospective clients is ok.
⩥ Covered or Not Covered Under the OAP1: Automobile is used car
pool in which all persons involved take regular turns providing
transportation.. Answer: Covered: Car pool permitted.
⩥ Covered or Not Covered Under the OAP1: Automobile is used
occasionally to drive members of daughter's high school hockey team to
games or tournaments. The insured receives $2.5/Km as a transportation
allowance from the school.. Answer: Covered: Occasional & infrequent
use permitted
⩥ Each time Iona rents a car, the rental agency attempts to sell her
insurance to cover the period of the rental. Iona has asked you whether
the policy on her own automobile would respond to
pay for any claims arising out of the use of a rented automobile. Identify
2 coverages provided under Iona's own policy which automatically
extend to rented automobiles and which, therefore, do not need to be
, purchased from the rental agency.. Answer: Third Party Liability and
Accident Benefits
⩥ When automobiles owned by the insured's employees are used in the
business, the employer has a non-owned automobile liability exposure.
While the policy which can be purchased by employers to insure this
exposure can be provided on a standalone basis, it is not normally done
in this way. Explain the usual manner in which this coverage is provided
to business owners.. Answer: CGL Policy or CGL Policy Endorsement
⩥ Provide 2 examples of automobiles that fall within the definition of
"Non-Owned Automobiles" under the Policy.. Answer: Vehicles owned
by employees or hired vehicles.
⩥ State the common law rule that outlines the reason why the owner of
the local Pizza-to-go franchise would be a good candidate for Non-
Owned Auto coverage.. Answer: Employers are responsible for the torts
committed by their Employees.
⩥ SPF4 Covered or Not Covered: BI caused to Pedestrian at a crosswalk
by insured's employee who is test driving a customers' automobile to
determine the adequacy of repairs made by the garage.. Answer:
Covered: Non-owned Autos include Customer's vehicles which are used
for test driving.
QUESTIONS AND SOLUTIONS GRADED A+
⩥ Outline the purpose of the OPCF 20 Endorsement. Answer: To
recover Expenses incurred on -
a) rental of substitute automobile
b) Taxicabs or public means of transportation
⩥ When your client has $1M in TPL and gets into an accident with a
third party who carrier $200,000 in TPL. How much will this allow her
policy to pay out for a max loss of $1M. Answer: $800,000
⩥ Most rental agencies attempt to sell Sally the full range of automobile
insurance coverages. Identify the two (2) coverages provided by all
insurance policies which extend rental automobiles.. Answer: Third
Party Liability and Accident Benefits
⩥ When automobiles owned by the insured's employee are used in the
business, the employer has a non-owned automobile liability exposure.
Indicate the automobile insurance policy which can be purchased by
employers to insure this exposure. And name another method of
providing this coverage to business owners.. Answer: SPF6 Non-Owned
Auto Liability and a CGL policy is an alternative.
,⩥ Covered or Not Covered Under the OAP1: Automobile is being used
to transport tourists on local tours. Answer: Not Covered: Sight seeing
conveyance is excluded.
⩥ Covered or Not Covered Under the OAP1: Automobile is being used
transport prospective buyers to real estate development located 30 kms.
From the insured's office.. Answer: Covered: Carriage of clients or
prospective clients is ok.
⩥ Covered or Not Covered Under the OAP1: Automobile is used car
pool in which all persons involved take regular turns providing
transportation.. Answer: Covered: Car pool permitted.
⩥ Covered or Not Covered Under the OAP1: Automobile is used
occasionally to drive members of daughter's high school hockey team to
games or tournaments. The insured receives $2.5/Km as a transportation
allowance from the school.. Answer: Covered: Occasional & infrequent
use permitted
⩥ Each time Iona rents a car, the rental agency attempts to sell her
insurance to cover the period of the rental. Iona has asked you whether
the policy on her own automobile would respond to
pay for any claims arising out of the use of a rented automobile. Identify
2 coverages provided under Iona's own policy which automatically
extend to rented automobiles and which, therefore, do not need to be
, purchased from the rental agency.. Answer: Third Party Liability and
Accident Benefits
⩥ When automobiles owned by the insured's employees are used in the
business, the employer has a non-owned automobile liability exposure.
While the policy which can be purchased by employers to insure this
exposure can be provided on a standalone basis, it is not normally done
in this way. Explain the usual manner in which this coverage is provided
to business owners.. Answer: CGL Policy or CGL Policy Endorsement
⩥ Provide 2 examples of automobiles that fall within the definition of
"Non-Owned Automobiles" under the Policy.. Answer: Vehicles owned
by employees or hired vehicles.
⩥ State the common law rule that outlines the reason why the owner of
the local Pizza-to-go franchise would be a good candidate for Non-
Owned Auto coverage.. Answer: Employers are responsible for the torts
committed by their Employees.
⩥ SPF4 Covered or Not Covered: BI caused to Pedestrian at a crosswalk
by insured's employee who is test driving a customers' automobile to
determine the adequacy of repairs made by the garage.. Answer:
Covered: Non-owned Autos include Customer's vehicles which are used
for test driving.
