Page 1 of 28
CAIB 1 PRACTICE EXAM NEWEST 2026 ACTUAL
EXAM QUESTIONS AND CORRECT DETAILED
ANSWERS (VERIFIED ANSWERS) ALL ANSWERED
{100 Q & A} ALREADY GRADED A+ | 100%
GUARANTEED PASS
Which one of the below statements is incorrect in the event of a
claim?
a. An insured must provide a Proof of Loss as soon as
practicable
b. If the insured included an item she didn't own, the insurer will
only pay for the articles they can prove ownership for
c. If the insurer denies a claim and the insured has up to 1 year to
take legal action against the insurer
d. When the insurer opts for a cash settlement, payment must be
made within 60 days of receiving proof of loss unless the
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contract says otherwise - ✔✔✔ Correct Answer > b. If the insured
included an item she didn't own, the insurer will only pay for the
articles they can prove ownership for
Which of the following does not apply to the Statutory
Conditions?
a. If the insured has a reasonable chance to protect property
from loss but failed to do so, it would not affect the claim
settlement
b. When the insurer chooses to repair property, it must give
written notice within 30 days of receiving the Proof of Loss
c. An agent of the insured can give notice or proof of loss if the
insured is unable
d. After a loss has been reported, the insurer has the right of
access to investigate the loss - ✔✔✔ Correct Answer > a. If the insured
has a reasonable chance to protect property from loss but failed
to do so, it would not affect the claim settlement
A contract is only legally enforceable when it has all of these 3
elements - ✔✔✔ Correct Answer > Insurable interest,
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utmost good faith,
indemnity
Which of the following best reflects the duties of the broker?
a. A broker acts only in the best interest of the client
b. A broker must always place insurance with the cheapest
insurer
c. A broker does not owe any duty to the insurer he/she
represents
d. A broker must always be truthful and disclose all material
facts about the client's risk to the insurer - ✔✔✔ Correct Answer > d. A
broker must always be truthful and disclose all material facts
about the client's risk to the insurer
What is the role of the broker in the insurance process? - ✔✔✔
Correct Answer > An intermediary between the client and the insurer
The law requires that brokers exercise "reasonable skill, care
and diligence", otherwise errors and omissions claims may arise.
CAIB 1 PRACTICE EXAM NEWEST 2026 ACTUAL
EXAM QUESTIONS AND CORRECT DETAILED
ANSWERS (VERIFIED ANSWERS) ALL ANSWERED
{100 Q & A} ALREADY GRADED A+ | 100%
GUARANTEED PASS
Which one of the below statements is incorrect in the event of a
claim?
a. An insured must provide a Proof of Loss as soon as
practicable
b. If the insured included an item she didn't own, the insurer will
only pay for the articles they can prove ownership for
c. If the insurer denies a claim and the insured has up to 1 year to
take legal action against the insurer
d. When the insurer opts for a cash settlement, payment must be
made within 60 days of receiving proof of loss unless the
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contract says otherwise - ✔✔✔ Correct Answer > b. If the insured
included an item she didn't own, the insurer will only pay for the
articles they can prove ownership for
Which of the following does not apply to the Statutory
Conditions?
a. If the insured has a reasonable chance to protect property
from loss but failed to do so, it would not affect the claim
settlement
b. When the insurer chooses to repair property, it must give
written notice within 30 days of receiving the Proof of Loss
c. An agent of the insured can give notice or proof of loss if the
insured is unable
d. After a loss has been reported, the insurer has the right of
access to investigate the loss - ✔✔✔ Correct Answer > a. If the insured
has a reasonable chance to protect property from loss but failed
to do so, it would not affect the claim settlement
A contract is only legally enforceable when it has all of these 3
elements - ✔✔✔ Correct Answer > Insurable interest,
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utmost good faith,
indemnity
Which of the following best reflects the duties of the broker?
a. A broker acts only in the best interest of the client
b. A broker must always place insurance with the cheapest
insurer
c. A broker does not owe any duty to the insurer he/she
represents
d. A broker must always be truthful and disclose all material
facts about the client's risk to the insurer - ✔✔✔ Correct Answer > d. A
broker must always be truthful and disclose all material facts
about the client's risk to the insurer
What is the role of the broker in the insurance process? - ✔✔✔
Correct Answer > An intermediary between the client and the insurer
The law requires that brokers exercise "reasonable skill, care
and diligence", otherwise errors and omissions claims may arise.
