CAIB 2 STUDY GUIDE 2026 QUESTIONS AND ANSWERS
SCORED A+
✔✔1. Accidental breakage by insured or employees
2. Stones thrown from tires of passing vehicles
3. Shifting or building due to earth movement - ✔✔Identify three examples of
lossescovered by the rider
✔✔1. Fire
2. Deliberate acts of war, or like violence
3. During construction of, alteration to premises, other thank ordinary
repair/maintenance
4. When premises vacant, on occupied, shut down 30 days
5. Arising out of enforcement of by laws - ✔✔Identify five exclusions to the rider
✔✔1. Costs of making temporary repairs, such as incurred in boarding up damaged
openings
2. Costs of removing obstructions, metal grills, to facilitate repair
3. Cost of making repairs to damaged window, showcase, or other frames - ✔✔Identify
three additional coverages som insurers are willing to provide
✔✔1. Amounts which cannot be collected as direct result from loss or accounts
receivable records from insured peril.
2. Interest charges on any loan o offset impaired uncollectible by such loss or damage.
Interest loans taken by insured to offset amounts owed to business not yet collected
3. Collection expense is excess of normal collection cost and necessary because of loss
4. Other expenses in re-establishing records of accounts receivable following such loss
or damage - ✔✔Identify the four coverage components of the accounts receivable form
✔✔1. Location and protection of accounts receivable records
2. Coverage available on reporting or non-reporting basis. Allows full coverage for
maximum exposure
3. Limiting exposure to loss-duplicates as backup - ✔✔Identify three areas addressed
by the form
✔✔Must be maintained in the receptacles described on the form - ✔✔Identify where
accounts receivable records must be stored when not in use
✔✔The availability of duplicate records - ✔✔Besides the quality of the storage
receptacle, identify one other factor which will effect rate charged
✔✔Cannot fully eliminate accounts receivable exposure, loss or fire could occur late
afternoon or busy day prior to backing up transactions - ✔✔Why would accounts
receivable coverage be required when there are duplicate copies kept off premises
, ✔✔No - ✔✔Do valuable peppers and records insurance cover loss to money and
securities
✔✔1. Deeds, mortgages
2. Manuscripts
3. Books, maps
4. Films - ✔✔Identify any three types of property covered by the form
✔✔1. Quality of receptacle in which valuable papers and records are kept
2. Availability of duplicates - ✔✔Identify two factors that will affect the amount of rate
credit provided to the client
✔✔1. Being conveyed outside toe premises (legal docs between law offices)
2. While temporarily at other locations - ✔✔Identify two other locations, other than those
listed on the form to where coverage is extended
✔✔10% of amount of insurance purchased or $5,000, whichever is les - ✔✔Identify the
limit available for the two locations (outside the premises or temporarily at another
location)
✔✔Loss due to electrical or magnetic injury or disturbance or erasure of electrical
recordings, except by lightning (under electronic data processing policy) - ✔✔Identify
the common exclusions to this form and the accounts receivable form
✔✔In the receptacles described on the form (safes, vaults, filing cabinets) - ✔✔Identify
where insured property must be stored when not in use
✔✔1. Loss to data processing systems, including equipment and component parts
2. Active data processing media, including programs
3. Extra expense - ✔✔Identify the three areas of coverage under the electronic data
processing policy (EDP)
✔✔1. Printers, modems
2. Computers
3. Automatic teller machines
4. Photocopiers - ✔✔Identify three examples of hardware
✔✔Includes rented, leased or in control of insured - provides protection for substitute
systems. Does not limit coverage to only those hardware items scheduled on file -
✔✔Identify one key advantage of insuring on a blanket basis
✔✔1. Seepage
2. Leakage
SCORED A+
✔✔1. Accidental breakage by insured or employees
2. Stones thrown from tires of passing vehicles
3. Shifting or building due to earth movement - ✔✔Identify three examples of
lossescovered by the rider
✔✔1. Fire
2. Deliberate acts of war, or like violence
3. During construction of, alteration to premises, other thank ordinary
repair/maintenance
4. When premises vacant, on occupied, shut down 30 days
5. Arising out of enforcement of by laws - ✔✔Identify five exclusions to the rider
✔✔1. Costs of making temporary repairs, such as incurred in boarding up damaged
openings
2. Costs of removing obstructions, metal grills, to facilitate repair
3. Cost of making repairs to damaged window, showcase, or other frames - ✔✔Identify
three additional coverages som insurers are willing to provide
✔✔1. Amounts which cannot be collected as direct result from loss or accounts
receivable records from insured peril.
2. Interest charges on any loan o offset impaired uncollectible by such loss or damage.
Interest loans taken by insured to offset amounts owed to business not yet collected
3. Collection expense is excess of normal collection cost and necessary because of loss
4. Other expenses in re-establishing records of accounts receivable following such loss
or damage - ✔✔Identify the four coverage components of the accounts receivable form
✔✔1. Location and protection of accounts receivable records
2. Coverage available on reporting or non-reporting basis. Allows full coverage for
maximum exposure
3. Limiting exposure to loss-duplicates as backup - ✔✔Identify three areas addressed
by the form
✔✔Must be maintained in the receptacles described on the form - ✔✔Identify where
accounts receivable records must be stored when not in use
✔✔The availability of duplicate records - ✔✔Besides the quality of the storage
receptacle, identify one other factor which will effect rate charged
✔✔Cannot fully eliminate accounts receivable exposure, loss or fire could occur late
afternoon or busy day prior to backing up transactions - ✔✔Why would accounts
receivable coverage be required when there are duplicate copies kept off premises
, ✔✔No - ✔✔Do valuable peppers and records insurance cover loss to money and
securities
✔✔1. Deeds, mortgages
2. Manuscripts
3. Books, maps
4. Films - ✔✔Identify any three types of property covered by the form
✔✔1. Quality of receptacle in which valuable papers and records are kept
2. Availability of duplicates - ✔✔Identify two factors that will affect the amount of rate
credit provided to the client
✔✔1. Being conveyed outside toe premises (legal docs between law offices)
2. While temporarily at other locations - ✔✔Identify two other locations, other than those
listed on the form to where coverage is extended
✔✔10% of amount of insurance purchased or $5,000, whichever is les - ✔✔Identify the
limit available for the two locations (outside the premises or temporarily at another
location)
✔✔Loss due to electrical or magnetic injury or disturbance or erasure of electrical
recordings, except by lightning (under electronic data processing policy) - ✔✔Identify
the common exclusions to this form and the accounts receivable form
✔✔In the receptacles described on the form (safes, vaults, filing cabinets) - ✔✔Identify
where insured property must be stored when not in use
✔✔1. Loss to data processing systems, including equipment and component parts
2. Active data processing media, including programs
3. Extra expense - ✔✔Identify the three areas of coverage under the electronic data
processing policy (EDP)
✔✔1. Printers, modems
2. Computers
3. Automatic teller machines
4. Photocopiers - ✔✔Identify three examples of hardware
✔✔Includes rented, leased or in control of insured - provides protection for substitute
systems. Does not limit coverage to only those hardware items scheduled on file -
✔✔Identify one key advantage of insuring on a blanket basis
✔✔1. Seepage
2. Leakage
