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CAIB 3 EXAM NEWEST 2026/2027 ACTUAL EXAM COMPLETE
200 QUESTIONS AND CORRECT DETAILED ANSWERS (VERIFIED
ANSWERS) |ALREADY GRADED A+||BEST NEW
VERSION||SURE PASS!!!
One winter day a pedestrian slipped and fell on the icy sidewalk
right in front of the insured's business premises located at a
small strip mall and fractured a leg. The mall owner maintained
the premises and cleared the entire sidewalk of snow and ice
during the winter months. The insured had signed a lease
agreement which contained a clause that held the landlord
harmless for bodily injury or property damage. State COVERED
or NOT COVERED - ANSWER-COVERED
The insured's friend, an electrician, was installing new light
fixtures in the insured's beauty salon. During the installation a
glass lamp shade shattered and a falling piece cut a customer
who required medical attention. It turned out that the
electrician did not have liability insurance. As friends often help
each other out, the insured agreed to take the blame for the
injury to the customer. State COVERED or NOT COVERED -
ANSWER-NOT COVERED
The Commercial General Liability policy includes Coverage C.
Medical Payments for expenses incurred by a third party.
Explain the reasons why this coverage is provided on a "no
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fault" basis. - ANSWER-Reasons for providing this coverage is
on a "no fault" basis include:
a) The chances of a permanent disability to the injured party
are greatly reduced when immediate medical attention is
obtained.
b) Potential for claims alleging negligence is reduced.
c) A legal confrontation with the injured party over such
expenses is avoided.
What is the name given to the collection of written decisions? -
ANSWER-Case Law
Explain the concept of the Rule of Precedent. - ANSWER-
Current court decisions must follow those made in cases having
similar circumstances, which allows the development of a
logical body of general principles against which specific cases to
be compared.
Explain the meaning of the term "damages". - ANSWER-
Compensation in money for the loss or damage suffered.
Compensatory damages for bodily injury are an amalgamation
of general and special damages, and based on a number of
factors which the courts take into account.
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State four factors that influence the determination of
compensatory damages. - ANSWER-1. extent of financial
support provided by the injured party to his or her family
2. social position
3. reputation
4. financial circumstances
5. ability of the plaintiff's legal representative
Explain the assumption that lies at the centre of the Doctrine of
Strict Liability. - ANSWER-Based on the assumption that certain
activities are so hazardous that, in the event of injury or
damage arising out of them, the person conducting the activity
shall be presumed to be legal liable
Identify two activities that impose strict liability on the person
conducting the activity. - ANSWER-The setting off of explosives ,
the lighting of fires, the operation of aircraft, the keeping of a
dangerous thing on the premises, such as water in a dam or
cistern; gas; electricity; wild animals.
What is the position of the defendant in a legal action when the
law deems the defendant strictly liable? - ANSWER-The
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defendant has the right to establish a defense against an action
alleging strict liability.
What determines if a product is defective? - ANSWER-A
defective product is one that contained something that it
should not have; or something that should have been there was
omitted in its manufacture.
Your client is an architectural firm owned by two partners that
employs six architects and ten additional staff. Their liability is
covered under the Commercial General Liability Policy (Claims
Made Form) IBC 2200. The policy has been in effect with the
same insurer since August 31, 2008.
a) Last month your client learned that a former client has filed a
law suit in which they are named as a co-defendant alleging
improper construction and design of a commercial building
erected in 2006. Damages are claimed in the amount of 10
Million Dollars. Explain whether or not the policy would
respond to pay in the event of the firm being held legally liable
for the damages. - ANSWER-There is no coverage because the
policy responds only to occurrences during the policy term
starting August 31, 2008 which is the retroactive date. Any
occurrences before that date are not covered by the policy.
CAIB 3 EXAM NEWEST 2026/2027 ACTUAL EXAM COMPLETE
200 QUESTIONS AND CORRECT DETAILED ANSWERS (VERIFIED
ANSWERS) |ALREADY GRADED A+||BEST NEW
VERSION||SURE PASS!!!
One winter day a pedestrian slipped and fell on the icy sidewalk
right in front of the insured's business premises located at a
small strip mall and fractured a leg. The mall owner maintained
the premises and cleared the entire sidewalk of snow and ice
during the winter months. The insured had signed a lease
agreement which contained a clause that held the landlord
harmless for bodily injury or property damage. State COVERED
or NOT COVERED - ANSWER-COVERED
The insured's friend, an electrician, was installing new light
fixtures in the insured's beauty salon. During the installation a
glass lamp shade shattered and a falling piece cut a customer
who required medical attention. It turned out that the
electrician did not have liability insurance. As friends often help
each other out, the insured agreed to take the blame for the
injury to the customer. State COVERED or NOT COVERED -
ANSWER-NOT COVERED
The Commercial General Liability policy includes Coverage C.
Medical Payments for expenses incurred by a third party.
Explain the reasons why this coverage is provided on a "no
,2|Page
fault" basis. - ANSWER-Reasons for providing this coverage is
on a "no fault" basis include:
a) The chances of a permanent disability to the injured party
are greatly reduced when immediate medical attention is
obtained.
b) Potential for claims alleging negligence is reduced.
c) A legal confrontation with the injured party over such
expenses is avoided.
What is the name given to the collection of written decisions? -
ANSWER-Case Law
Explain the concept of the Rule of Precedent. - ANSWER-
Current court decisions must follow those made in cases having
similar circumstances, which allows the development of a
logical body of general principles against which specific cases to
be compared.
Explain the meaning of the term "damages". - ANSWER-
Compensation in money for the loss or damage suffered.
Compensatory damages for bodily injury are an amalgamation
of general and special damages, and based on a number of
factors which the courts take into account.
,3|Page
State four factors that influence the determination of
compensatory damages. - ANSWER-1. extent of financial
support provided by the injured party to his or her family
2. social position
3. reputation
4. financial circumstances
5. ability of the plaintiff's legal representative
Explain the assumption that lies at the centre of the Doctrine of
Strict Liability. - ANSWER-Based on the assumption that certain
activities are so hazardous that, in the event of injury or
damage arising out of them, the person conducting the activity
shall be presumed to be legal liable
Identify two activities that impose strict liability on the person
conducting the activity. - ANSWER-The setting off of explosives ,
the lighting of fires, the operation of aircraft, the keeping of a
dangerous thing on the premises, such as water in a dam or
cistern; gas; electricity; wild animals.
What is the position of the defendant in a legal action when the
law deems the defendant strictly liable? - ANSWER-The
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defendant has the right to establish a defense against an action
alleging strict liability.
What determines if a product is defective? - ANSWER-A
defective product is one that contained something that it
should not have; or something that should have been there was
omitted in its manufacture.
Your client is an architectural firm owned by two partners that
employs six architects and ten additional staff. Their liability is
covered under the Commercial General Liability Policy (Claims
Made Form) IBC 2200. The policy has been in effect with the
same insurer since August 31, 2008.
a) Last month your client learned that a former client has filed a
law suit in which they are named as a co-defendant alleging
improper construction and design of a commercial building
erected in 2006. Damages are claimed in the amount of 10
Million Dollars. Explain whether or not the policy would
respond to pay in the event of the firm being held legally liable
for the damages. - ANSWER-There is no coverage because the
policy responds only to occurrences during the policy term
starting August 31, 2008 which is the retroactive date. Any
occurrences before that date are not covered by the policy.
