CAIB 1 Chapter 1 - Section
2 Checkpoints
Comprehensive Questions
(Frequently Tested) with
Verified Answers Graded
A+
[Document subtitle]
[DATE]
[COMPANY NAME]
[Company address]
, Contact for further consultation
1. Provide 3 reasons why governments are involved in the
regulation of the insurance industry Answer: 1. Insurance companies will be
financially competent to discharge their obligations
2. Forms of contracts are drafted fairly
3. Business is being conducted to the general benefit of the public.
2. Explain the role of the Property and Casualty Insurance
Compensation Corpo- ration (PACICC). Indicate the level of protection
provided to all insureds under this compulsory industry plan Answer: The role of
PACICC is to protect the consumer against insurer insolvency. Each insurance company is
assessed an amount based upon the total of their direct written premium. The maximum amount
available for any one claims is $250,000. A refund of up to 70% of unearned premiums, subject to a
maximum of $700 per policy.
3. Identify the 3 coverage's required to be provided under all
policies of fire insurance issued in the common law provinces.
Answer: 1. Fire
2. Lightning
3. Explosion of natural coal or manufactured gas.
2/
11
2 Checkpoints
Comprehensive Questions
(Frequently Tested) with
Verified Answers Graded
A+
[Document subtitle]
[DATE]
[COMPANY NAME]
[Company address]
, Contact for further consultation
1. Provide 3 reasons why governments are involved in the
regulation of the insurance industry Answer: 1. Insurance companies will be
financially competent to discharge their obligations
2. Forms of contracts are drafted fairly
3. Business is being conducted to the general benefit of the public.
2. Explain the role of the Property and Casualty Insurance
Compensation Corpo- ration (PACICC). Indicate the level of protection
provided to all insureds under this compulsory industry plan Answer: The role of
PACICC is to protect the consumer against insurer insolvency. Each insurance company is
assessed an amount based upon the total of their direct written premium. The maximum amount
available for any one claims is $250,000. A refund of up to 70% of unearned premiums, subject to a
maximum of $700 per policy.
3. Identify the 3 coverage's required to be provided under all
policies of fire insurance issued in the common law provinces.
Answer: 1. Fire
2. Lightning
3. Explosion of natural coal or manufactured gas.
2/
11
