CAIB 2 Questions and Answers Already Passed

CAIB 2 Questions and Answers Already Passed Scheduled Coverage Refer to policy on which coverage is provided only on that property which is specifically identified or scheduled Property of Every Description Refers to policy used to insure buildings, stock and equipment under a single limit of insurance All Property (Blanket) A policy which under all property owned by the insured is covered or "blanketed" by a single limit of insurance Tenant Improvement Building improvement, alteration and betterment made at the expense of or purchased by the insured to a building occupied by the insured and which are not otherwise insured, providing the insured is not the actual owner of the building Actual Cash Value The replacement or repair cost less depreciation Replacement Value Represents the cost to repair, replace or rebuild the lost of damaged property without deduction for depreciation ( KEY DIFFERENCE - DEDUCTION WITHOUT DEPRECIATION) Reinsurance involves the insurer ceding of part of the risk it has assumed to one or more other insurers (insurers sharing of the policy betw insurers) Subscription An insurance policy under which a group of insurers has agreed to participate in providing policy insurance coverage (brokers sharing the policy among in insurers Conditions Something imposed by the insurer which requires the insured to do or not do something Subrogation Refers to the right of the insurer to "step into the shoes" of the party whom it has compensated and sue any party whom the compensated party could have sued Warranty A promise that a certain fact areas they are represented to be and that they will remain so (promise represented to be and remain so) Material Fact Fact which communicated to the insurer would induce it either to decline the insurance altogether, or not accept it unless a higher premium is paid Fraudulent To act willfully, and with the specific intent to deceive or cheat Void Contract One which has NO "LEGAL OR BINDING FEE" and as such, "is incapable of being enforced bylaw"