CAIB 1 Definitions Exam Questions With
Correct Answers
Speculative Risk - ANSWER✔✔✔-The chance of financial loss or gain
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Contract - ANSWER✔✔✔-an agreement between 2 or more people
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which creates and obligation to do or not do something
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Indemnity - ANSWER✔✔✔--Indemnity is measured by the value of the
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insured property as it existed immediately prior to the loss
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Security against damage, loss, or injury.
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2. An exemption from liability for damages resulting from specified
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conduct, as in a contract indemnifying a party for the performance of
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certain actions.
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3. Compensation for damage, loss, or injury suffered
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4. application of the principle of indemnity ensures people receive the
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actual amount of their loss, no more and no less
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Insurable Interest - ANSWER✔✔✔-1.Required in all insurance contracts
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2. Must show that they would suffer financially by a loss
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, 3. examples - own the business, mortgage holder, bailee or someone
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that would be held legally responsible to a third party for injury or
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damage
Fiduciary - ANSWER✔✔✔-One who occupies a special position of trust
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or confidence in the handling or supervising in the affairs or funds of
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others
Additional living expenses - ANSWER✔✔✔-Coverage that provides for
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additional cost of living elsewhere when the dwelling is damaged by an
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insured peril and the damage is sufficient to make the dwelling unfit for
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occupancy. Also covers fair rental value if part of the dwelling was
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rented or being held for rental at the time of the loss.
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Payment is made only for: | | | |
The reasonable time that is required to repair or rebuild the dwelling.
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If the insured decides to permanently relocate, the reasonable time
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required to settle elsewhere.| | |
Vandalism - ANSWER✔✔✔-The wilful or ignorant destruction of
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property
Theft - ANSWER✔✔✔-All means of taking property without the owners
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consent.
Correct Answers
Speculative Risk - ANSWER✔✔✔-The chance of financial loss or gain
| | | | | | | | |
Contract - ANSWER✔✔✔-an agreement between 2 or more people
| | | | | | | | |
which creates and obligation to do or not do something
| | | | | | | | |
Indemnity - ANSWER✔✔✔--Indemnity is measured by the value of the
| | | | | | | | | |
insured property as it existed immediately prior to the loss
| | | | | | | | |
Security against damage, loss, or injury.
| | | | |
2. An exemption from liability for damages resulting from specified
| | | | | | | | | |
conduct, as in a contract indemnifying a party for the performance of
| | | | | | | | | | | |
certain actions.
|
3. Compensation for damage, loss, or injury suffered
| | | | | | |
4. application of the principle of indemnity ensures people receive the
| | | | | | | | | | |
actual amount of their loss, no more and no less
| | | | | | | | |
Insurable Interest - ANSWER✔✔✔-1.Required in all insurance contracts
| | | | | | |
2. Must show that they would suffer financially by a loss
| | | | | | | | | |
, 3. examples - own the business, mortgage holder, bailee or someone
| | | | | | | | | | |
that would be held legally responsible to a third party for injury or
| | | | | | | | | | | | |
damage
Fiduciary - ANSWER✔✔✔-One who occupies a special position of trust
| | | | | | | | | |
or confidence in the handling or supervising in the affairs or funds of
| | | | | | | | | | | | |
others
Additional living expenses - ANSWER✔✔✔-Coverage that provides for
| | | | | | | |
additional cost of living elsewhere when the dwelling is damaged by an
| | | | | | | | | | | |
insured peril and the damage is sufficient to make the dwelling unfit for
| | | | | | | | | | | | |
occupancy. Also covers fair rental value if part of the dwelling was
| | | | | | | | | | | |
rented or being held for rental at the time of the loss.
| | | | | | | | | | |
Payment is made only for: | | | |
The reasonable time that is required to repair or rebuild the dwelling.
| | | | | | | | | | |
If the insured decides to permanently relocate, the reasonable time
| | | | | | | | | |
required to settle elsewhere.| | |
Vandalism - ANSWER✔✔✔-The wilful or ignorant destruction of
| | | | | | | |
property
Theft - ANSWER✔✔✔-All means of taking property without the owners
| | | | | | | | | |
consent.
