CAIB 1 COMPREHENSIVE EXAM UPDATED QUESTIONS
AND ANSWERS SURE A+
✔✔What is a deductible and why does it exist? - ✔✔The amount the insured is required
to absorb for each loss before insurer pays out. A deductible exists to reduce the
number of petty claims
✔✔Explain the idea of subrogation - ✔✔When an insurer pays a claim for a loss caused
by a 3rd party, the insurer is allowed to place itself "into the insured's shoes" and take
on their legal rights (ie. to sue the responsible party)
✔✔What is considered "personal property? - ✔✔Contents of the dwelling, personal
property used by insured while on premises and contents usual to the
ownership/maintenance of the dwelling
✔✔What is the definition of a vacant property? - ✔✔All occupants have moved out with
no intention of returning and no new occupants
✔✔What is theft? - ✔✔All means of taking property without owner's consent
✔✔What is an endorsement? - ✔✔A written agreement between the insured and the
insurer to change some terms of the insurance contract
✔✔What is the difference between criminal law and civil law? - ✔✔Criminal law deals
with wrongs against society. Civil law is for disputes between individuals/legal entities
✔✔What is a tort? - ✔✔A wrong done by another person's breach of legal duty
✔✔Provide 3 examples of tort - ✔✔Trespass,
nuisance,
defamation,
false arrest,
invasion of privacy,
or
negligence
✔✔3 elements of a tort - ✔✔Duty owed,
duty breached
& damages resulted (proximately)
✔✔Which type of tort is insurable? - ✔✔Unintentional torts
, ✔✔What is strict liability and when does it apply? - ✔✔Strict liability assumes a person
is guilty until proven innocent. This typically applies to cases where the person is doing
something inherently dangerous
✔✔What is negligence? - ✔✔Carelessness: not doing what a reasonable man in the
same situation would have done, or doing something a reasonable man would not have
done
✔✔There are 4 broad types of people who might seek to enter your premises. What are
these 4, define them and explain the duty you owe to each - ✔✔a. Trespasser: entering
without permission from occupier
i. Duty owed: no legal duty owed but cannot set traps or cause intentional harm
b. Licensee: someone entering for their own purpose with permission from occupier
i. Duty owed: warn of any hazards known to occupier that licensee would not expect
c. Invitee: invited in for benefit of the occupier
i. Duty owed: protect against dangers down or might reasonably discover
d. Children: protected by law
i. Duty owed: premises must be safe from all dangers
✔✔What is the liability of a landlord in a building with multiple tenancy? -
✔✔Responsible for common areas
✔✔How do you determine the liability of a bailee for customer's goods? - ✔✔Under the
2 types of civil law
a. Tort law: must exercise ordinary care
b. Contract law: for responsibilities assumed under contract
✔✔Explain the liability of employers for the tort of their employee - ✔✔a. Employees
delegated their work without employer's consent
b. While on a frolic of their own
c. Employee used property without authorization for their own purpose
✔✔Explain the concept of general average - ✔✔Provides payment for ocean marine
losses voluntarily incurred to save the entire venture. The parties whose property was
saved would contribute to repay the sacrificed party
✔✔Identify 3 categories of risk - ✔✔Personal risk,
property risk,
liability risk
✔✔Explain the statutory condition of salvage. - ✔✔The insured is legally required to
take reasonable steps to protect property from further damage.
AND ANSWERS SURE A+
✔✔What is a deductible and why does it exist? - ✔✔The amount the insured is required
to absorb for each loss before insurer pays out. A deductible exists to reduce the
number of petty claims
✔✔Explain the idea of subrogation - ✔✔When an insurer pays a claim for a loss caused
by a 3rd party, the insurer is allowed to place itself "into the insured's shoes" and take
on their legal rights (ie. to sue the responsible party)
✔✔What is considered "personal property? - ✔✔Contents of the dwelling, personal
property used by insured while on premises and contents usual to the
ownership/maintenance of the dwelling
✔✔What is the definition of a vacant property? - ✔✔All occupants have moved out with
no intention of returning and no new occupants
✔✔What is theft? - ✔✔All means of taking property without owner's consent
✔✔What is an endorsement? - ✔✔A written agreement between the insured and the
insurer to change some terms of the insurance contract
✔✔What is the difference between criminal law and civil law? - ✔✔Criminal law deals
with wrongs against society. Civil law is for disputes between individuals/legal entities
✔✔What is a tort? - ✔✔A wrong done by another person's breach of legal duty
✔✔Provide 3 examples of tort - ✔✔Trespass,
nuisance,
defamation,
false arrest,
invasion of privacy,
or
negligence
✔✔3 elements of a tort - ✔✔Duty owed,
duty breached
& damages resulted (proximately)
✔✔Which type of tort is insurable? - ✔✔Unintentional torts
, ✔✔What is strict liability and when does it apply? - ✔✔Strict liability assumes a person
is guilty until proven innocent. This typically applies to cases where the person is doing
something inherently dangerous
✔✔What is negligence? - ✔✔Carelessness: not doing what a reasonable man in the
same situation would have done, or doing something a reasonable man would not have
done
✔✔There are 4 broad types of people who might seek to enter your premises. What are
these 4, define them and explain the duty you owe to each - ✔✔a. Trespasser: entering
without permission from occupier
i. Duty owed: no legal duty owed but cannot set traps or cause intentional harm
b. Licensee: someone entering for their own purpose with permission from occupier
i. Duty owed: warn of any hazards known to occupier that licensee would not expect
c. Invitee: invited in for benefit of the occupier
i. Duty owed: protect against dangers down or might reasonably discover
d. Children: protected by law
i. Duty owed: premises must be safe from all dangers
✔✔What is the liability of a landlord in a building with multiple tenancy? -
✔✔Responsible for common areas
✔✔How do you determine the liability of a bailee for customer's goods? - ✔✔Under the
2 types of civil law
a. Tort law: must exercise ordinary care
b. Contract law: for responsibilities assumed under contract
✔✔Explain the liability of employers for the tort of their employee - ✔✔a. Employees
delegated their work without employer's consent
b. While on a frolic of their own
c. Employee used property without authorization for their own purpose
✔✔Explain the concept of general average - ✔✔Provides payment for ocean marine
losses voluntarily incurred to save the entire venture. The parties whose property was
saved would contribute to repay the sacrificed party
✔✔Identify 3 categories of risk - ✔✔Personal risk,
property risk,
liability risk
✔✔Explain the statutory condition of salvage. - ✔✔The insured is legally required to
take reasonable steps to protect property from further damage.
