CAIB 2 Final Exam Practice
Test Questions & Answers
2024 Update!!
Define Loading - ANSWERAdditional rate charged over and above the fire rate.
Define common carrier - ANSWERIncludes airline, railroads, trucking companies, and others that
furnish transportation to any member of the public seeking their services.
Define "Bailee for Hire" - ANSWEROne who has temporary custody of the personal property of
another for a purpose other than sale and who is compensated as a condition of such custody.
Define discovery period. - ANSWERTime permitted by an insurer, commencing with the expiry date of
the policy, in which a claim must be discovered by the insured if it is to be covered by the policy.
Define contributing property - ANSWERManufacturer or supplier upon whom the insured depends
for materials or goods.
All of the following characteristics except one, are common to Boiler and Machinery policies. Pick the
exception.
A) insures objects against accidents.
B) excludes coverage for mechanical or electrical breakdown.
C) coverage is provided on a limit per accident basis.
D) insurer retains the right to suspend coverage immediately on any object judged to be in a
dangerous condition. - ANSWERB) excludes coverage for mechanical or electrical breakdown.
, The builders risk broad form can be used to insure all of the following property items at the project
site, except one. Pick the exception.
A) all materials and supplies to enter into and form part of the completed project.
B) growing trees, plants, shrubs, and flowers.
C) temporary office used by the contractor.
D) contractors tools and equipment. - ANSWERD) contractors tools and equipment.
A common carrier is not liable to the owners of goods being transported by it for the following loss:
(pick the correct answer)
A) spoilage of goods caused by the failure of refrigeration equipment attached to transporting
conveyance.
B) inherent vice in goods being transported.
C) damage to goods caused by an accident involving the transporting conveyance.
D) a delay in shipment causing spoilage due to stock being misdirected by the carrier at the point of
shipment. - ANSWERB) inherent vice in goods being transported.
Glitters jewelry store incorporated is equipped with sophisticated burglary detection equipment. It
also subscribes to the services of an alarm control Center providing the highest level of supervisory
service today is:
A) digital communicator service
B) monitoring station service
C) emergency station service
D) central station service. - ANSWERD) Central station service
All of the following statements are true when coverage is provided due to the insureds business
being interrupted by order of civil authority, except one. Pick the exception.
A) insureds building must suffer physical damage.
B) coverage is limited to a maximum of two weeks.
C) insured is entitled to recover lost income even though there has been no actual damage to
property insured under policy.
Test Questions & Answers
2024 Update!!
Define Loading - ANSWERAdditional rate charged over and above the fire rate.
Define common carrier - ANSWERIncludes airline, railroads, trucking companies, and others that
furnish transportation to any member of the public seeking their services.
Define "Bailee for Hire" - ANSWEROne who has temporary custody of the personal property of
another for a purpose other than sale and who is compensated as a condition of such custody.
Define discovery period. - ANSWERTime permitted by an insurer, commencing with the expiry date of
the policy, in which a claim must be discovered by the insured if it is to be covered by the policy.
Define contributing property - ANSWERManufacturer or supplier upon whom the insured depends
for materials or goods.
All of the following characteristics except one, are common to Boiler and Machinery policies. Pick the
exception.
A) insures objects against accidents.
B) excludes coverage for mechanical or electrical breakdown.
C) coverage is provided on a limit per accident basis.
D) insurer retains the right to suspend coverage immediately on any object judged to be in a
dangerous condition. - ANSWERB) excludes coverage for mechanical or electrical breakdown.
, The builders risk broad form can be used to insure all of the following property items at the project
site, except one. Pick the exception.
A) all materials and supplies to enter into and form part of the completed project.
B) growing trees, plants, shrubs, and flowers.
C) temporary office used by the contractor.
D) contractors tools and equipment. - ANSWERD) contractors tools and equipment.
A common carrier is not liable to the owners of goods being transported by it for the following loss:
(pick the correct answer)
A) spoilage of goods caused by the failure of refrigeration equipment attached to transporting
conveyance.
B) inherent vice in goods being transported.
C) damage to goods caused by an accident involving the transporting conveyance.
D) a delay in shipment causing spoilage due to stock being misdirected by the carrier at the point of
shipment. - ANSWERB) inherent vice in goods being transported.
Glitters jewelry store incorporated is equipped with sophisticated burglary detection equipment. It
also subscribes to the services of an alarm control Center providing the highest level of supervisory
service today is:
A) digital communicator service
B) monitoring station service
C) emergency station service
D) central station service. - ANSWERD) Central station service
All of the following statements are true when coverage is provided due to the insureds business
being interrupted by order of civil authority, except one. Pick the exception.
A) insureds building must suffer physical damage.
B) coverage is limited to a maximum of two weeks.
C) insured is entitled to recover lost income even though there has been no actual damage to
property insured under policy.
