CAIB 2 exam questions and answers 2024
Your client, a retail fashion store, has just rented a business premises in a mall.
Before opening your business, she plans to install new wall to wall carpeting and
install wall paneling. These values would be insured under the amount provided
for:
A. Stock
B. Equipment
C. Building
D. Business Interruption - B. Equipment
While the law permits the insurer to surrogate against the party responsible for
the loss, the insurer agrees not to exercise that right in respect to certain parties
under the policy. Which of the following parties would be surrogates agains in the
event of their responsibility?
A. insureds business partner
B. Mortgagee
C. Parents who provide financing
D. Independent contractor - D. Independent contractor
,CAIB 2 exam questions and answers 2024
The commercial building, equipment and stock (broad form policy) insures all of
the following except:
A. Theft or attempted theft
B. Rupture of freezing
C. Collapse
D. Mysterious disappearance - D. Mysterious disappearance
Under a commercial property insurance policy, which of the following would be
considered equipment?
A. Photocopier leased from ideal copiers
B. Advertising brochures promoting next months end sales
C. Customers shoes kept on premises overnight for repair
D. Shoes held on consignment - A. Photocopier leased from ideal copiers
The consequential loss assumption clauses is defined to insured:
A. Damage caused to refrigerator or cooling equipment
B. Damage caused by freezing due to power failure
C. Loss to stock due to loss of temperature
D. Contamination of stock due to rupture of supply piping - C. Loss to stock due to
loss of temperature
,CAIB 2 exam questions and answers 2024
The coverages provided by the coverages provided by the contractors equipment
floater would insured which of the following losses?
A. Damage caused to front end loader due to freezing
B. Cracking of engine block on caterpillar due to freezing
C. Fire damage to contractors plans, blueprints, design or specifications
D. Sinking of caterpillar while operating over muskeg - A. Damage caused to front
end loader due to freezing
The safe burglary rider would insure one of the following losses:
A. Money taken from locked cash drawer
B. Money and securities taken from an unlocked safe
C. Money and securities taken from a locked safe by the burglar who knew its
combination
D. Removal of the safe from the premises - D. Removal of the safe from the
premises
The insurance industry relies on the classifications developed by the following
body when determining the appropriateness of the protection provided to
property by safes,vaults and other:
A. IAO
, CAIB 2 exam questions and answers 2024
B. ULC
C. IBC
D. Canada Safety Council - B. ULC
All of the following statements except one are true when the insureds business
has been interrupted by order of civil authority. Pick the exception:
A. Insured's building must have suffered physical damage
B. Coverage is limited to a maximum of two weeks
C. Insured is entitled to recover lost income even through there has been no
actual damage to the insured property
D. Order must have been given as a direct result of damage to neighbouring
premises by a peril insured against on the insureds own premises - A. Insureds
business must have suffered physical damage
Accommodation business is best described as:
A. A specialized type of insurance risk which included hotels, motels, apartment
buildings and rental property
B. A risk which can be insured only under a subscription policy
C. A risk which is substandard or marginal, but which, because of its relationship
with the broker, the insurer agrees to to underwrite
Your client, a retail fashion store, has just rented a business premises in a mall.
Before opening your business, she plans to install new wall to wall carpeting and
install wall paneling. These values would be insured under the amount provided
for:
A. Stock
B. Equipment
C. Building
D. Business Interruption - B. Equipment
While the law permits the insurer to surrogate against the party responsible for
the loss, the insurer agrees not to exercise that right in respect to certain parties
under the policy. Which of the following parties would be surrogates agains in the
event of their responsibility?
A. insureds business partner
B. Mortgagee
C. Parents who provide financing
D. Independent contractor - D. Independent contractor
,CAIB 2 exam questions and answers 2024
The commercial building, equipment and stock (broad form policy) insures all of
the following except:
A. Theft or attempted theft
B. Rupture of freezing
C. Collapse
D. Mysterious disappearance - D. Mysterious disappearance
Under a commercial property insurance policy, which of the following would be
considered equipment?
A. Photocopier leased from ideal copiers
B. Advertising brochures promoting next months end sales
C. Customers shoes kept on premises overnight for repair
D. Shoes held on consignment - A. Photocopier leased from ideal copiers
The consequential loss assumption clauses is defined to insured:
A. Damage caused to refrigerator or cooling equipment
B. Damage caused by freezing due to power failure
C. Loss to stock due to loss of temperature
D. Contamination of stock due to rupture of supply piping - C. Loss to stock due to
loss of temperature
,CAIB 2 exam questions and answers 2024
The coverages provided by the coverages provided by the contractors equipment
floater would insured which of the following losses?
A. Damage caused to front end loader due to freezing
B. Cracking of engine block on caterpillar due to freezing
C. Fire damage to contractors plans, blueprints, design or specifications
D. Sinking of caterpillar while operating over muskeg - A. Damage caused to front
end loader due to freezing
The safe burglary rider would insure one of the following losses:
A. Money taken from locked cash drawer
B. Money and securities taken from an unlocked safe
C. Money and securities taken from a locked safe by the burglar who knew its
combination
D. Removal of the safe from the premises - D. Removal of the safe from the
premises
The insurance industry relies on the classifications developed by the following
body when determining the appropriateness of the protection provided to
property by safes,vaults and other:
A. IAO
, CAIB 2 exam questions and answers 2024
B. ULC
C. IBC
D. Canada Safety Council - B. ULC
All of the following statements except one are true when the insureds business
has been interrupted by order of civil authority. Pick the exception:
A. Insured's building must have suffered physical damage
B. Coverage is limited to a maximum of two weeks
C. Insured is entitled to recover lost income even through there has been no
actual damage to the insured property
D. Order must have been given as a direct result of damage to neighbouring
premises by a peril insured against on the insureds own premises - A. Insureds
business must have suffered physical damage
Accommodation business is best described as:
A. A specialized type of insurance risk which included hotels, motels, apartment
buildings and rental property
B. A risk which can be insured only under a subscription policy
C. A risk which is substandard or marginal, but which, because of its relationship
with the broker, the insurer agrees to to underwrite
