CAIB 1 2026 REVISION NOTES AND
STRUCTURED INSURANCE FUNDAMENTALS
OVERVIEW GUIDE
◉ Valued policy. Answer: insured and insurer agree on the cash
value of the property at the time the policy is issued
◉ Blanket coverage. Answer: single limit of insurance for all
property falling within specific class
◉ Scheduled coverage. Answer: property is itemized on the policy
◉ Fiduccary. Answer: someone who occupies a position of special
trust or confidence in the handling or supervising of the affairs or
funds of another
◉ Unearned premium. Answer: portion of premium that has yet to
be earned
◉ Fire. Answer: the presence of visible flame or glow
◉ Friendly fire. Answer: damaged caused to a property deliberately ,
no coverage
, ◉ Hostile fire. Answer: a fire that passes outside the limits assigned
to it
◉ Proximate result. Answer: The event that actually caused the loss
◉ Material change. Answer: Any change within the control and
knowledge of the insured that happened after the policy was issued
and increases the chance of loss.
◉ Pro Rata. Answer: insurer divides the amount of premium paid by
the number of days in the policy period. Multiply that amount by the
number of days remaining in the policy
◉ Short Rate. Answer: Includes the costs of staff and computer time
that would not have been incurred had the policy remained in force
for the full policy term
◉ Notice of loss. Answer: notification given to the insurer informing
them of a loss
◉ Proof of loss. Answer: a formal verification, under oath, of the
details and amounts being claimed under the policy
STRUCTURED INSURANCE FUNDAMENTALS
OVERVIEW GUIDE
◉ Valued policy. Answer: insured and insurer agree on the cash
value of the property at the time the policy is issued
◉ Blanket coverage. Answer: single limit of insurance for all
property falling within specific class
◉ Scheduled coverage. Answer: property is itemized on the policy
◉ Fiduccary. Answer: someone who occupies a position of special
trust or confidence in the handling or supervising of the affairs or
funds of another
◉ Unearned premium. Answer: portion of premium that has yet to
be earned
◉ Fire. Answer: the presence of visible flame or glow
◉ Friendly fire. Answer: damaged caused to a property deliberately ,
no coverage
, ◉ Hostile fire. Answer: a fire that passes outside the limits assigned
to it
◉ Proximate result. Answer: The event that actually caused the loss
◉ Material change. Answer: Any change within the control and
knowledge of the insured that happened after the policy was issued
and increases the chance of loss.
◉ Pro Rata. Answer: insurer divides the amount of premium paid by
the number of days in the policy period. Multiply that amount by the
number of days remaining in the policy
◉ Short Rate. Answer: Includes the costs of staff and computer time
that would not have been incurred had the policy remained in force
for the full policy term
◉ Notice of loss. Answer: notification given to the insurer informing
them of a loss
◉ Proof of loss. Answer: a formal verification, under oath, of the
details and amounts being claimed under the policy
