CAIB 1 Practice Questions (100) Strategies Review of Key Quizzes with 100% correct Answers (Newest Update Verified 2026 | 2027) – Graded A+

CAIB 1 Practice Questions (100) Strategies Review of Key Quizzes with 100% correct Answers (Newest Update Verified 2026 | 2027) – Graded A+ Quiz_________________? 3 elements of a tort - Answers Duty owed, duty breached & damages resulted (proximately) Quiz_________________? A "building" is defined as... - Answers a. Fixed structures b. Additions/extensions c. Permanent fittings d. Materials on premises for regular maintenance e. Growing plants inside the building for decoration Quiz_________________? A contract is only legally enforceable when it has all of these 3 elements - Answers Insurable interest, utmost good faith, indemnity Quiz_________________? A legally enforceable agreement between 2 or more parties is defined as... a. A contract b. An agreement c. A will d. A contract of consideration - Answers a. A contract Quiz_________________? A moral hazard is - Answers Subjective characteristics of the applicant that could cause a peril Quiz_________________? A person has a few options when dealing with financial risk: avoidance, retention, control, and transfer. Which is usually the best option for most people? a. Avoidance b. Retention c. Transfer d. Control - Answers c. Transfer Quiz_________________? A reduction in value is called a... a. Loss b. Unlucky situation c. Claim d. Transfer - Answers a. Loss Quiz_________________? A stock company is... a. A company that invests in other 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 - Answers b. A company owned by stockholders who provide the capital to start and run the company Quiz_________________? After the insurer had indemnified the insured for loss, the insurer has the legal right to recover from the at fault party. This right is known as... - Answers The right of subrogation Quiz_________________? All changes to an insurance policy must be made in writing. What does an insurer issue when both parties have agreed on a change to the policy terms? - Answers An endorsement Quiz_________________? All property policies contain some conditions & warranties. Which of the following is not true? a. A condition is a requirement that the insured do or not do something b. A claim is still valid despite a breach of condition if the loss was not caused by the breach c. A claim is still valid despite a breach of warranty by the insured as long as the breach did not directly cause the loss d. A warranty is a promise that certain facts are true and shall remain true for the duration of the policy period - Answers c. A claim is still valid despite a breach of warranty by the insured as long as the breach did not directly cause the loss Quiz_________________? Both insurance companies and brokers act as fiduciaries. What is the fiduciary responsibility of a broker in regards to commissions? - Answers Unearned commissions are to be held in trust and paid back if the policy is cancelled before expiry Quiz_________________? Briefly explain explosion coverage under homeowners form - Answers Covers damage caused by hot water heaters and domestic boilers not due to water hammer