CAIB 2 Full Study Guide | Complete Exam with Verified Questions & 100% Correct Answers (Rated A+)

CAIB 2 Full Study Guide | Complete Exam with Verified Questions & 100% Correct Answers (Rated A+) Quiz_________________? a central station has the highest level of supervisor service. identify the five functions they perform - Answers 1) monitors all openings and closing times of the premises 2) automatically activates the alarm system at closing time 3) screen after hours users and provides report for supervisor 4) provides immediate notice to police when alarm is received 5) dispatches a company representative to subscribers premises immediately after police notified Quiz_________________? A licensed real estate appraiser will generally be consulted to provide an expert opinion when establishing Market Value/Direct Sales Approach. Identify the three items he or she may consider: - Answers Property before the loss Property after the loss the land Quiz_________________? all DIRECT damages caused to by electrical appliances covered under this form? (fire or extended coverages) - Answers yes Quiz_________________? all fire and extended forms used by insurance companies are identical, true or false? - Answers false Quiz_________________? although the 'all risks' property forms generally include coverge for theft on stock and equipment, identify three property items NOT covered - Answers money, cash cards, securities, stamps furs, fur garments jewels, jewellery property in the custody of a sales representative Quiz_________________? An application and a submission are not the same thing. Identify three items that a submission may include: - Answers -an application -additional verbal information -additional written information, including previous policy premium, loss history and details of loses, financial statements, photographs Quiz_________________? any additional costs as a result of a by-law, incurred by the insured is NOT covered under the policy. identify any three such costs that may be incurred by the insured. - Answers use of improved construction materials installation of automatic fire estinguishing systems installation of wheelchair, ramps, and improved accessibility features for the handicapped Quiz_________________? beside theft or attempted theft, identify other damage covered by the extensions - Answers vandalism or malicious acts committed on the same occasion Quiz_________________? Besides the quality of the storage receptacle, identify one other factor which will effect rate charged - Answers The availability of duplicate records Quiz_________________? Breifly explain the fuctions or endorsements, riders, and separate policies - Answers 1. Endorsements; changes the terms or conditions of the insureds policy 2. Riders; adds additional coverage to those already in place 3. Separate policies; equipment breakdown insurance, computer crime, other specialized coverages often purchased separately but can be added to existing policy Quiz_________________? Briefly describe the role of the LEAD company in a subscription policy: - Answers the lead company normally issues the policy and provides all policyholder services, including the handling of claims Quiz_________________? briefly explain how heat detectors, also known as infrared detectors operate - Answers infrared detectors transmit no signals. they are not motion detectors. instead, they sense the body heat of an intruder as he moves through the area under surveillance Quiz_________________? briefly explain how the hazards of occupancy, or housekeeping can affect two buildings of identical construction - Answers two identical constructed buildings will represent a different level of hazard when one is used to house the local public library and the other, a welding and metal fabrication shop Quiz_________________? briefly explain how the level of 'ordinary care' may vary by the type of bailee - Answers may vary with the class of property over which bailment is being exercised (ex. jewelry vs. wheat) Quiz_________________? Briefly explain the effect of any three of the additional conditions contained in the commercial property forms: - Answers PAIR & SET: if loss or damage to only one item does not constitute loss or damage to entire pair or set. PARTS: if loss or damage to any part of property, the insured is not liable for more than the insured value of the part lost or damaged, including cost of installation. NOTICE TO AUTHORITIES: when loss is due to malicious acts, theft or burglary, robbery, or attempt thereat, the insurer shall give immediate notice to police or other authorities having jurisdiction. Quiz_________________? briefly explain the following conditions: Canadian currency clause cancellation change of interest changes discovery period for loss duties in the event of a loss inspection legal action against us loss sustained during prior insurance policy period records valuation - Answers Canadian currency clause- losses under policy will be paid in Canadian funds cancellation- insureds entitled to 30 days notice to cancel existing coverage, except only 15 days required to cancel for non payment change of interest- if there is a change of interest in property insured the coverages will not extend to new owner unless consent obtained changes- any damages requested by insured are effective only when consented by insurer discovery period for loss- insured has up to 1 year after expiry of policy to make a claim under it duties in the event of loss- with 120 days of its discovery, a sworn proof of loss must be provided to the insurer inspection- the insurer retains the right to inspect the insureds premises at any reasonable time legal action against us- the insured is barred from bringing any action against the insurer after expiration of 2 years from date of discovery of loss loss sustained during prior insurance- if insured had similar insurance policies which terminated with the beginning of this policy period policy period- coverage is provided only for losses which occur during the policy period shown in declarations and within Canada or U.S. records- insureds records are important in verifying the amount of any loss valuation- value of securities is limited to their actual cash value at the close of business immediately proceeding discovery of loss (security value) Quiz_________________? Briefly explain the following eras as they apply to business interruption insurance and accounting - Answers 1. Gross profit; in accounting allows for more deductions, than insurance does - insured could be under insured 2. Gross earnings; unique to business interruption Quiz_________________? Briefly explain the function of the fire department charges endorsement - Answers To cover sums billed to insureds when a fire department is called to save or protect the insured property from loss by fire (usually neighbouring) Quiz_________________? Briefly explain the function of the inflation protection endorsement - Answers Increased amount of building insurance during the policy period to reflect increases in building costs