CAIB 2 Immersion Questions and answers
Identify three methods that can be used to gain access to a Protected Enclosure?
Provide an example for each. - Mechanical: Drills
Thermal: Torches
Explosion: Dynamite
What is the purpose of Perimeter Protection? - To prevent access to the premises
when the business is closed
Define Partial Protection and provide two weaknesses to Partial Protection? -
When only openings to the building are protected, such as windows and doors.
Forced entry through walls or ceilings will go undetected and stay behind thieves
will go unnoticed until they leave.
Common Clause: Indemnity Agreement - Policy pays least of:
ACV at the time of loss,
Insured's interest,
Policy limits
Common Clause: Deductible - Per occurrence
One deductible per location
,CAIB 2 Immersion Questions and answers
Common Clause: Co-Insurance - Applies separately to each item.
Waived if loss is below 2% of insurance limit or $5,000.
Encourages insurance to be purchased for at least a certain % of value.
Common Clause: Permission - Granted for:
Other insurance,
Alterations or additions,
To carry substances usual to insured business
Common Clause: Breach of Conditions - Breach must have impacted loss to deny
coverage.
Common Clause: Reinstatement - Losses do not reduce amount of insurance.
Refunds not impacted by claim in policy period.
Common Clause: Subrogation - After payment of loss, right of recovery is
transferred to insurer.
,CAIB 2 Immersion Questions and answers
Common Clause: Property Protection Systems - Insured must advise of any known
defect or flaw in any:
Fire extinguishing system,
Fire detection system,
Intrusion detection system.
Common Clause: Premium Adjustment - Stock adequately covered of actual
inventory reported at end of term.
6 months to apply for premium adjustment at expiry.
Common Clause: Verification of Values - Insurer has the right to inspect books:
Any reasonable time during the policy period &
Within one year of cancellation
Common Clause: Basis of Valuation - Policy pays ACV at the time of loss, not
exceeding cost repair.
Exceptions:
Sold stock - selling price less discounts
Property of others - Maximum amount insured is liable.
, CAIB 2 Immersion Questions and answers
Tenants Improvements - If NOT repairing, will be proportionate value of
improvements to remaining time in lease.
Records - Blank record and cost to transfer data.
Common Clause: Property of Others - Insurer's option to either pay insured or
owner of the property.
Common Clause: Locked Vehicle Warranty *BROAD FORM ONLY* - Property in
vehicles must be kept in fully enclosed, locked vehicles.
Must have signs of forced entry.
What perils are covered under Basic Fire policy? - Fire
Lightning
Explosion of natural, coal or manufactured gas
Excluded PERILS to Basic Fire policy? - Electrical devices by artificial currents.
Application of heat (only to the item heat was applied to- ensuing fire covered).
War risks.
Nuclear incident or contamination (ensuing fire would be covered)
Identify three methods that can be used to gain access to a Protected Enclosure?
Provide an example for each. - Mechanical: Drills
Thermal: Torches
Explosion: Dynamite
What is the purpose of Perimeter Protection? - To prevent access to the premises
when the business is closed
Define Partial Protection and provide two weaknesses to Partial Protection? -
When only openings to the building are protected, such as windows and doors.
Forced entry through walls or ceilings will go undetected and stay behind thieves
will go unnoticed until they leave.
Common Clause: Indemnity Agreement - Policy pays least of:
ACV at the time of loss,
Insured's interest,
Policy limits
Common Clause: Deductible - Per occurrence
One deductible per location
,CAIB 2 Immersion Questions and answers
Common Clause: Co-Insurance - Applies separately to each item.
Waived if loss is below 2% of insurance limit or $5,000.
Encourages insurance to be purchased for at least a certain % of value.
Common Clause: Permission - Granted for:
Other insurance,
Alterations or additions,
To carry substances usual to insured business
Common Clause: Breach of Conditions - Breach must have impacted loss to deny
coverage.
Common Clause: Reinstatement - Losses do not reduce amount of insurance.
Refunds not impacted by claim in policy period.
Common Clause: Subrogation - After payment of loss, right of recovery is
transferred to insurer.
,CAIB 2 Immersion Questions and answers
Common Clause: Property Protection Systems - Insured must advise of any known
defect or flaw in any:
Fire extinguishing system,
Fire detection system,
Intrusion detection system.
Common Clause: Premium Adjustment - Stock adequately covered of actual
inventory reported at end of term.
6 months to apply for premium adjustment at expiry.
Common Clause: Verification of Values - Insurer has the right to inspect books:
Any reasonable time during the policy period &
Within one year of cancellation
Common Clause: Basis of Valuation - Policy pays ACV at the time of loss, not
exceeding cost repair.
Exceptions:
Sold stock - selling price less discounts
Property of others - Maximum amount insured is liable.
, CAIB 2 Immersion Questions and answers
Tenants Improvements - If NOT repairing, will be proportionate value of
improvements to remaining time in lease.
Records - Blank record and cost to transfer data.
Common Clause: Property of Others - Insurer's option to either pay insured or
owner of the property.
Common Clause: Locked Vehicle Warranty *BROAD FORM ONLY* - Property in
vehicles must be kept in fully enclosed, locked vehicles.
Must have signs of forced entry.
What perils are covered under Basic Fire policy? - Fire
Lightning
Explosion of natural, coal or manufactured gas
Excluded PERILS to Basic Fire policy? - Electrical devices by artificial currents.
Application of heat (only to the item heat was applied to- ensuing fire covered).
War risks.
Nuclear incident or contamination (ensuing fire would be covered)
