Caib 2 exam terms review 2023-2024
warranty - A promise that certain facts are as they are represented to be and that
they will remain so
hazard - A condition which may cause a peril to occur
Latent defect - A hidden or concealed defect, which cannot be discovered by
reasonable and customary inspection
Endorsement - Changes the terms or conditions of the insured's policy
Messenger - The insured or a partner of the insured or any employee who is duly
authorized by the insured to have the care and custody of the insured property
outside the premises
Damage to electrical equipment caused by artificially generated electrical currents
is excluded by most property insurance policies. Under the fire policy, which of the
following losses would be insured?
A) damage time wiring of refigeration equipment by power surge
B) fire damage to electrical motor arising after a sudden power surge
C) damage to electrical switch due to power surge
,Caib 2 exam terms review 2023-2024
D) damage to electrical wiring and switches by brown-out or sudden reduction in
power - B
The insurance acts of the common law provinces require that every policy Insuring
againsnt the peril of fire also insure:
A) lighting damage to electrical devices and appliances
B) windstorm
C) explosion of natural, coal or manufactured gas
D) smoke - C
All of the following methods used by common carriers to limit liability except one.
Pick the exception.
A) standard bull of lading
B) valued Bill of lading
C) enhanced bill of lading
D) released bill of lading - C
,Caib 2 exam terms review 2023-2024
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 provided is on a limit per accident basis
D) policy contains suspension clause - B
Insurance policies define certain terms as they relate to coverage. The broadest
meaning is given to :
A) burglary
B) theft
C) hold-up
D) robbery - B
Paul sole of foote's shoe distributors inc has resisted all your efforts to add
business interruption insurance coverages to his policy. I'm his opinion, building,
equipment, and stock coverages provide all the insurance he needs.
, Caib 2 exam terms review 2023-2024
Other then physical damage to mr. Sole's property, provide 3 examples of sources
of business interruption losses which might be used to convince mr. Foote of the
need for business interruption insurance. - A) failure or breakdown of public
utilities
B) transportation- related accidents
C) physical damage to neighboring premises
Gord's glass inc is insured under the commercial building, equipment and stock-
broad form policy. During your initial explanation of the coverages provided by
this policy, Gord was surprised to learn that even the broadest coverage forms
contain exclusions.
Insurers have many reasons for excluding coverage for certain perils and property
items. Indicate the reason the Insurer might have for excluding each of the
following losses:
A) loss due to war or arising out of the nuclear energy hazard
B) loss due to flood or earthquake
C) automobiles and aircraft - A) to exclude losses which are generally considered
to be "uninsurable"
B) to exclude losses which have within them the "potential to be catastrophic"
warranty - A promise that certain facts are as they are represented to be and that
they will remain so
hazard - A condition which may cause a peril to occur
Latent defect - A hidden or concealed defect, which cannot be discovered by
reasonable and customary inspection
Endorsement - Changes the terms or conditions of the insured's policy
Messenger - The insured or a partner of the insured or any employee who is duly
authorized by the insured to have the care and custody of the insured property
outside the premises
Damage to electrical equipment caused by artificially generated electrical currents
is excluded by most property insurance policies. Under the fire policy, which of the
following losses would be insured?
A) damage time wiring of refigeration equipment by power surge
B) fire damage to electrical motor arising after a sudden power surge
C) damage to electrical switch due to power surge
,Caib 2 exam terms review 2023-2024
D) damage to electrical wiring and switches by brown-out or sudden reduction in
power - B
The insurance acts of the common law provinces require that every policy Insuring
againsnt the peril of fire also insure:
A) lighting damage to electrical devices and appliances
B) windstorm
C) explosion of natural, coal or manufactured gas
D) smoke - C
All of the following methods used by common carriers to limit liability except one.
Pick the exception.
A) standard bull of lading
B) valued Bill of lading
C) enhanced bill of lading
D) released bill of lading - C
,Caib 2 exam terms review 2023-2024
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 provided is on a limit per accident basis
D) policy contains suspension clause - B
Insurance policies define certain terms as they relate to coverage. The broadest
meaning is given to :
A) burglary
B) theft
C) hold-up
D) robbery - B
Paul sole of foote's shoe distributors inc has resisted all your efforts to add
business interruption insurance coverages to his policy. I'm his opinion, building,
equipment, and stock coverages provide all the insurance he needs.
, Caib 2 exam terms review 2023-2024
Other then physical damage to mr. Sole's property, provide 3 examples of sources
of business interruption losses which might be used to convince mr. Foote of the
need for business interruption insurance. - A) failure or breakdown of public
utilities
B) transportation- related accidents
C) physical damage to neighboring premises
Gord's glass inc is insured under the commercial building, equipment and stock-
broad form policy. During your initial explanation of the coverages provided by
this policy, Gord was surprised to learn that even the broadest coverage forms
contain exclusions.
Insurers have many reasons for excluding coverage for certain perils and property
items. Indicate the reason the Insurer might have for excluding each of the
following losses:
A) loss due to war or arising out of the nuclear energy hazard
B) loss due to flood or earthquake
C) automobiles and aircraft - A) to exclude losses which are generally considered
to be "uninsurable"
B) to exclude losses which have within them the "potential to be catastrophic"
