CAIB 2 - CHAPTER 1 | Strategies Review of Key Quizzes with 100% correct Answers (Newest Update Verified 2026 | 2027) – Graded A+

CAIB 2 - CHAPTER 1 | Strategies Review of Key Quizzes with 100% correct Answers (Newest Update Verified 2026 | 2027) – Graded A+ Quiz_________________? - The lost or damaged property is similar to that insured by the policy; - The insured was under an obligation to insure that property; - The insured was legally liable for it. - Answers "Similar property belonging to others" is automatically covered under the amounts of insurance for stock and equipment if... Quiz_________________? (Did÷Should) x Loss = Settlement. - Answers The co-insurance clause calculation. Quiz_________________? 1) Actual Cash Value 2) Replacement Value 3) Book Value. - Answers The three ways property may be valued. Quiz_________________? 1) Actual Cash Value of the property as it existed immediately prior to the loss; 2) The interest of the insured in the property; 3) The amount of insurance as shown on the policy. - Answers The three considerations used to determine an amount of indemnity. Quiz_________________? 1) All contents usual to the insured's business (including furniture, fittings, fixtures, machinery, tools, etc.) other than "building" or "stock"; 2) Similar property belonging to others which the insured is under obligation to keep insured or for which he is legally liable; 3) Tenant's improvements, which are defined as building improvements, alterations, and betterments made at the expense of the insured to a "building" occupied but not owned by the insured, and which are not otherwise insured. - Answers The three components of "equipment" found in commercial policies. Quiz_________________? 1) All insurers share in both the premiums collected and the losses incurred; 2) The contract is between the primary insurer and the reinsurer. 3) The policy is controlled by the primary insurer, and all claims are paid by the primary insurer. - Answers The three rules that apply to reinsurance? Quiz_________________? 1) Building 2) Equipment 3) Stock. - Answers The three classes of property insured by commercial property insurance policies. Quiz_________________? 1) Fixed structures located on the premises; 2) Additions and extensions communicating and in contact with the building; 3) Permanent fitting and fixtures attached to and forming part of the building; 4) Materials, equipment and supplies on the premises for maintenance of, and normal repairs and minor alterations to the building, or for building services; 5) Growing plants, trees, shrubs or flowers inside the building used for decorative purposes, when the insured owns the building. - Answers The five components found in the definition of "building" in commercial property policies. Quiz_________________? 1) Merchandise of every description usual to the insured's business; 2) Packing, wrapping and advertising materials; 3) Similar property belonging to others which the insured is under obligation to keep insured or for which he is legally liable. - Answers The three components found in the definition of "stock" in commercial policies. Quiz_________________? 1) On unsold stock: on the basis of ACV at the time and place of loss or damage, not to exceed the cost to repair or replace with material of like kind and quality; 2) On sold stock: on the basis of selling price, less any discounts; 3) On property of others upon which work is being performed: the amount for which the insured is liable, not to exceed the ACV at the time and place of loss or damage plus an allowance for labour and materials.. - Answers The ways that the value of insured property is determined under a Basis of Valuation clause. Quiz_________________? 1) Participating insurers share the premiums and the losses; 2) Each agreement is negotiated separately. - Answers The two common characteristics of subscription policies.