CAIB 1 Question and Answer [2026] |
UPDATED ACTUAL Exam | Final
Review
• Unidentified Automobile -✓✓ One in which the identity of either the owner or
driver cannot be ascertained and which causes bodily injury or death to the insured
person.
• Notice of Loss -✓✓ Immediate report of loss to insurer by the insured or his
representative (agent) in writing
• Newly Acquired Auto -✓✓ One which replaces an automobile described on the
policy or is in addition to others owned by the insured which are all insured by the
same insurer.
• Step Licensing -✓✓ A system which requires a higher degree of knowledge for
each increasing step
• Professional -✓✓ Is one who processes special skills or knowledge
• Uninsured Automobile -✓✓ One in which neither the driver nor the owner has
collectible bodily injury liability insurance
• General Average -✓✓ Designed to provide payment for ocean marine losses
voluntarily incurred for the safety of the entire venture. Insurers of the parties who
property was saved will contribute to the losses of the parties whose property was
sacrificed
,• Occupant -✓✓ Any person who drives the automobile or is being carried on or
upon or entering into or leaving the automobile
• Pink Card -✓✓ Is used to provide proof of financial responsibility
• Facility Association -✓✓ An insurance pool in which all licensed automobile
insurers participate and which provides insurance to those who may be refused
insurance by private insurers
• Farming -✓✓ Ownership, maintenance or use of premises for the production of
crops or the raising or care of livestock, including all necessary operations
• Residence Employee -✓✓ Those whose duties are exclusively in connection or
maintenance and use of the residence premises
• Trespasser -✓✓ one who intentionally and without consent or privilege enters
another's property
• Driver's Abstract -✓✓ A record of the driver history of the applicant and other
drivers which can be obtained from provincial licensing authorities
• Custom Farming -✓✓ Use of insured's farm machinery or equipment for others
away from insured's farm premises for compensation. It does NOT include work
done for others in return for work done by them.
• Farm Employee -✓✓ Those paid for their work and who are hired on a part time,
seasonal or full time basis to perform duties principally connected with farming
activities outside the insureds dwelling
, • Licensee -✓✓ Is someone who comes onto the premises for his own purpose but
with occupiers consent
• Invitee -✓✓ Someone who enters by invitation be it express or implied. Entry
connected with owners business or activity the owner conducts
• Plantiff -✓✓ The party making the complaint
• Hostile Fire -✓✓ a fire that leaves its intended place, such as a spark that escapes
a fireplace and sets the carpet on fire
• Fine Arts Endorsement -✓✓ Traditionally includes pictures, paintings, works of
rarity and historical value
• Negligence -✓✓ The doing of something that a reasonable and prudent man
wouldn't do
• General Damages -✓✓ Damages which cannot be exactly determined but which
reflect an amount the court believes necessary to compensate the aggrieved party
fairly.
• Short Rate Basis -✓✓ The basis of return premium calculation when the insured
cancels the policy.
• Criminal Law -✓✓ Deals with wrongs against society
UPDATED ACTUAL Exam | Final
Review
• Unidentified Automobile -✓✓ One in which the identity of either the owner or
driver cannot be ascertained and which causes bodily injury or death to the insured
person.
• Notice of Loss -✓✓ Immediate report of loss to insurer by the insured or his
representative (agent) in writing
• Newly Acquired Auto -✓✓ One which replaces an automobile described on the
policy or is in addition to others owned by the insured which are all insured by the
same insurer.
• Step Licensing -✓✓ A system which requires a higher degree of knowledge for
each increasing step
• Professional -✓✓ Is one who processes special skills or knowledge
• Uninsured Automobile -✓✓ One in which neither the driver nor the owner has
collectible bodily injury liability insurance
• General Average -✓✓ Designed to provide payment for ocean marine losses
voluntarily incurred for the safety of the entire venture. Insurers of the parties who
property was saved will contribute to the losses of the parties whose property was
sacrificed
,• Occupant -✓✓ Any person who drives the automobile or is being carried on or
upon or entering into or leaving the automobile
• Pink Card -✓✓ Is used to provide proof of financial responsibility
• Facility Association -✓✓ An insurance pool in which all licensed automobile
insurers participate and which provides insurance to those who may be refused
insurance by private insurers
• Farming -✓✓ Ownership, maintenance or use of premises for the production of
crops or the raising or care of livestock, including all necessary operations
• Residence Employee -✓✓ Those whose duties are exclusively in connection or
maintenance and use of the residence premises
• Trespasser -✓✓ one who intentionally and without consent or privilege enters
another's property
• Driver's Abstract -✓✓ A record of the driver history of the applicant and other
drivers which can be obtained from provincial licensing authorities
• Custom Farming -✓✓ Use of insured's farm machinery or equipment for others
away from insured's farm premises for compensation. It does NOT include work
done for others in return for work done by them.
• Farm Employee -✓✓ Those paid for their work and who are hired on a part time,
seasonal or full time basis to perform duties principally connected with farming
activities outside the insureds dwelling
, • Licensee -✓✓ Is someone who comes onto the premises for his own purpose but
with occupiers consent
• Invitee -✓✓ Someone who enters by invitation be it express or implied. Entry
connected with owners business or activity the owner conducts
• Plantiff -✓✓ The party making the complaint
• Hostile Fire -✓✓ a fire that leaves its intended place, such as a spark that escapes
a fireplace and sets the carpet on fire
• Fine Arts Endorsement -✓✓ Traditionally includes pictures, paintings, works of
rarity and historical value
• Negligence -✓✓ The doing of something that a reasonable and prudent man
wouldn't do
• General Damages -✓✓ Damages which cannot be exactly determined but which
reflect an amount the court believes necessary to compensate the aggrieved party
fairly.
• Short Rate Basis -✓✓ The basis of return premium calculation when the insured
cancels the policy.
• Criminal Law -✓✓ Deals with wrongs against society
