CAIB 2
Accommodation Business—ANSWER--Substandard risks taken on by underwriters as a
favour to the broker
Actual Cash Value—ANSWER--Replacement cost minus depreciation
Actual Loss Sustained—ANSWER--(Business Interruption) Loss of income that you
would have earned otherwise had the business interruption not occurred
Adverse Selection—ANSWER--When an underwriter picks a poor risk (either too risky or
unprofitable.
All Property—ANSWER--Coverage where all property owned by the insured is covered
under 1 limit.
Note: can even extend to cover multiple locations and still subject to exclusions.
Area Protection—ANSWER--Used to restrict unauthorized access to certain areas
(protects the interior)
Bailee for Hire—ANSWER--Someone who has custody of the property of others for
purpose other than sale
, Burglary—ANSWER--The unlawful taking of property by someone illegally entering or
leaving the premises with evidence of forced entry or exit
Catastrophe Limit—ANSWER--The maximum payable on any 1 occurrence
Centrifugal Force—ANSWER--The tendency of an object to move away from its center
rotation.
Common Carrier—ANSWER--Someone who carries goods for the general pubic
Common Hazards—ANSWER--Hazards common to all buildings
Condition—ANSWER--A requirement to do or not do something
Contract Carrier—ANSWER--Carriers, for compensation the goods of their customers
only
Contributing Property—ANSWER--A major supplier/manufacturer that your business
depends on for continued operation.
Note if the contributing property has a loss it may affect your business' ability to
continue operations.
Custodian—ANSWER--Insured, partner or their employee authorized to have custody of
insured property excluding guards, janitors, porters or watchman.
Data—ANSWER--Information stored on media
Detachment—ANSWER--Proximity to nearby commercial exposures (buildings)
Discovery Period—ANSWER--The time starting after policy expiry that the insured has to
discover a claim for it to be covered under the policy
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law, Copyrighted By Brittie Donald
Accommodation Business—ANSWER--Substandard risks taken on by underwriters as a
favour to the broker
Actual Cash Value—ANSWER--Replacement cost minus depreciation
Actual Loss Sustained—ANSWER--(Business Interruption) Loss of income that you
would have earned otherwise had the business interruption not occurred
Adverse Selection—ANSWER--When an underwriter picks a poor risk (either too risky or
unprofitable.
All Property—ANSWER--Coverage where all property owned by the insured is covered
under 1 limit.
Note: can even extend to cover multiple locations and still subject to exclusions.
Area Protection—ANSWER--Used to restrict unauthorized access to certain areas
(protects the interior)
Bailee for Hire—ANSWER--Someone who has custody of the property of others for
purpose other than sale
, Burglary—ANSWER--The unlawful taking of property by someone illegally entering or
leaving the premises with evidence of forced entry or exit
Catastrophe Limit—ANSWER--The maximum payable on any 1 occurrence
Centrifugal Force—ANSWER--The tendency of an object to move away from its center
rotation.
Common Carrier—ANSWER--Someone who carries goods for the general pubic
Common Hazards—ANSWER--Hazards common to all buildings
Condition—ANSWER--A requirement to do or not do something
Contract Carrier—ANSWER--Carriers, for compensation the goods of their customers
only
Contributing Property—ANSWER--A major supplier/manufacturer that your business
depends on for continued operation.
Note if the contributing property has a loss it may affect your business' ability to
continue operations.
Custodian—ANSWER--Insured, partner or their employee authorized to have custody of
insured property excluding guards, janitors, porters or watchman.
Data—ANSWER--Information stored on media
Detachment—ANSWER--Proximity to nearby commercial exposures (buildings)
Discovery Period—ANSWER--The time starting after policy expiry that the insured has to
discover a claim for it to be covered under the policy
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law, Copyrighted By Brittie Donald
