CAIB 1 Definitions Question and answers rated A+ 2024

CAIB 1 Definitions Question and answers rated A+ 2024 Speculative Risk - correct answer The chance of financial loss or gain Contract - correct answer an agreement between 2 or more people which creates and obligation to do or not do something Indemnity - correct answer -Indemnity is measured by the value of the insured property as it existed immediately prior to the loss Security against damage, loss, or injury. 2. An exemption from liability for damages resulting from specified conduct, as in a contract indemnifying a party for the performance of certain actions. 3. Compensation for damage, loss, or injury suffered 4. application of the principle of indemnity ensures people receive the actual amount of their loss, no more and no less Insurable Interest - correct answer 1.Required in all insurance contracts 2. Must show that they would suffer financially by a loss 3. examples - own the business, mortgage holder, bailee or someone that would be held legally responsible to a third party for injury or damage Fiduciary - correct answer One who occupies a special position of trust or confidence in the handling or supervising in the affairs or funds of others