CAIB 2 ACTUAL TEST QUESTIONS WITH
VERIFIED CORRECT ANSWERS
●● Building, Stock and Equipment are insured under a single limit of
insurance.
Answer: Property of Every Description (POED) coverage.
●● All property owned by the insured is covered or "blanketed" by a
single limit of insurance. (May insure property at more than one
location.)
Answer: All Property (Blanket) coverage.
●● 1) Building
2) Equipment
3) Stock.
Answer: The three classes of property insured by commercial property
insurance policies.
●● It sets the stock coverage to items that are USUAL to the insured's
business.
Answer: Regarding stock coverage, why it's important to provide a
proper description of the business to the insurer.
, ●● - The lost or damaged property is similar to that insured by the
policy;
- The insured was under an obligation to insure that property;
- The insured was legally liable for it.
Answer: "Similar property belonging to others" is automatically covered
under the amounts of insurance for stock and equipment if...
●● 1) Fixed structures located on the premises;
2) Additions and extensions communicating and in contact with the
building;
3) Permanent fitting and fixtures attached to and forming part of the
building;
4) Materials, equipment and supplies on the premises for maintenance
of, and normal repairs and minor alterations to the building, or for
building services;
5) Growing plants, trees, shrubs or flowers inside the building used for
decorative purposes, when the insured owns the building.
Answer: The five components found in the definition of "building" in
commercial property policies.
●● The entire area within the property lines and areas and areas under
adjoining sidewalks and driveways at the location described on the
Declarations Page, and in or on vehicles within 100 meters (328 feet) of
such locations.
Answer: "Premises."
VERIFIED CORRECT ANSWERS
●● Building, Stock and Equipment are insured under a single limit of
insurance.
Answer: Property of Every Description (POED) coverage.
●● All property owned by the insured is covered or "blanketed" by a
single limit of insurance. (May insure property at more than one
location.)
Answer: All Property (Blanket) coverage.
●● 1) Building
2) Equipment
3) Stock.
Answer: The three classes of property insured by commercial property
insurance policies.
●● It sets the stock coverage to items that are USUAL to the insured's
business.
Answer: Regarding stock coverage, why it's important to provide a
proper description of the business to the insurer.
, ●● - The lost or damaged property is similar to that insured by the
policy;
- The insured was under an obligation to insure that property;
- The insured was legally liable for it.
Answer: "Similar property belonging to others" is automatically covered
under the amounts of insurance for stock and equipment if...
●● 1) Fixed structures located on the premises;
2) Additions and extensions communicating and in contact with the
building;
3) Permanent fitting and fixtures attached to and forming part of the
building;
4) Materials, equipment and supplies on the premises for maintenance
of, and normal repairs and minor alterations to the building, or for
building services;
5) Growing plants, trees, shrubs or flowers inside the building used for
decorative purposes, when the insured owns the building.
Answer: The five components found in the definition of "building" in
commercial property policies.
●● The entire area within the property lines and areas and areas under
adjoining sidewalks and driveways at the location described on the
Declarations Page, and in or on vehicles within 100 meters (328 feet) of
such locations.
Answer: "Premises."
