CAIB 1 Comprehensive
Questions (Frequently
Tested) with Verified
Answers Graded A+
[Document subtitle]
[DATE]
[COMPANY NAME]
[Company address]
, Contact for further consultation
1. Risk Answer: the chance of financial loss to which an object of insurance is exposed
2. Speculative Risk Answer: possibility of financial loss or gain
3. Pure Risk Answer: Chance of financial loss, no gain
4. Insurance Answer: undertaking by one person to indemnify another person against loss or
liability for loss in respect of a certain risk or peril to which the object of insurance may be exposed
or to pay a sum of money or other ting of value upon the happening of a certain event
5. Contract Answer: an agreement between two or more persons which creates an obligation
to do or not to do a particular thing
6. Insurable Interest Answer: showing you would sutter financially by a loss
7. Utmost good faith Answer: caveat emptor, buyer beware. Exercise a higher standard of
honesty
8. Indemnity Answer: putting the insured back into the same position as they were in as
immediately prior to loss
9. Binder Answer: Contract of insurace
10. Agency Agreement Answer: source of a brokers authority
11. Void Answer: Unable to support its intended purpose, treated as though it never existed
12. Voidable Answer: void to the wrongdoer but not to the wronged party unless they elect to
2/
12
Questions (Frequently
Tested) with Verified
Answers Graded A+
[Document subtitle]
[DATE]
[COMPANY NAME]
[Company address]
, Contact for further consultation
1. Risk Answer: the chance of financial loss to which an object of insurance is exposed
2. Speculative Risk Answer: possibility of financial loss or gain
3. Pure Risk Answer: Chance of financial loss, no gain
4. Insurance Answer: undertaking by one person to indemnify another person against loss or
liability for loss in respect of a certain risk or peril to which the object of insurance may be exposed
or to pay a sum of money or other ting of value upon the happening of a certain event
5. Contract Answer: an agreement between two or more persons which creates an obligation
to do or not to do a particular thing
6. Insurable Interest Answer: showing you would sutter financially by a loss
7. Utmost good faith Answer: caveat emptor, buyer beware. Exercise a higher standard of
honesty
8. Indemnity Answer: putting the insured back into the same position as they were in as
immediately prior to loss
9. Binder Answer: Contract of insurace
10. Agency Agreement Answer: source of a brokers authority
11. Void Answer: Unable to support its intended purpose, treated as though it never existed
12. Voidable Answer: void to the wrongdoer but not to the wronged party unless they elect to
2/
12
