CAIB 2 - Commercial Property Exam
Questions With Detailed Answers 2024
What are 2 examples of temporary locations where property maybe located and insured
by temporary location coverage? - CORRECT ANSWER-1) When at customers
premises on a pre-sale trial basis
2) When at warehouse awaiting pickup by client
What are 3 coverages found in EDP Policies? - CORRECT ANSWER-1) Loss to data
processing systems and components (hardware)
2) Loss to data processing media and programs (software)
3) Extra Expenses
What are 2 key coverage advantages provided by section I of EDP Policies? -
CORRECT ANSWER-1) Broad water losses
2) Mechanical & Electrical breakdown
List 5 causes of mechanical and electrical breakdown insured by EDP Policies? -
CORRECT ANSWER-1) Error in machine programing
2) Processing
3) Short Circuit
4) Dampness or dryness or atmosphere
5) Extremes of temperature
What limit of coverage is available to insure Valuable Papers & Records while off
premises? - CORRECT ANSWER-10% of amount of insurance or $5000, whichever is
less
What type of electrical disturbance is insured by Valuable Papers & Records while off
premises? - CORRECT ANSWER-when it is caused by lightning
, What 2 factors influence premiums to be charged on both Accounts Receivable and
Valuable Papers & Records coverage - CORRECT ANSWER-1) Availability of
duplicates
2) Quality of described receptacle
When can coverages be extended to insure Valuable Papers & Records while off
premises (2) - CORRECT ANSWER-1) When being transported outside premises
2) When at other premises on a temporary basis
What are 4 coverages provided by accounts receivable form and provide an example of
each - CORRECT ANSWER-1) Amounts which cannot be collected due to loss of
accounts receivable records (Ex: client doesn't remember entire list of customers who
owe)
2) Interest on loans your client needs to pay current liabilities (Ex: supplier must be paid
prior to settlement)
3) Extra costs in collection of accounts receivable (Ex: paying a collection agencies or
overtime to staff trying to collect accounts)
4) Expenses incurred in the reconstruction of records (Ex: hiring an accountant to
reconstruct AR list)
What are 4 coverages automatically included in commercial package policies -
CORRECT ANSWER-1) Property Insurance
2) Business Interruption
3) Liability Insurance
4) Crime Insurance
What are 5 considerations that may result in lower premiums - CORRECT ANSWER-1)
Building constructed after 1945
2) Sprinklered
3) Alarmed
4) Sole Occupant
5) Increased deductible
Questions With Detailed Answers 2024
What are 2 examples of temporary locations where property maybe located and insured
by temporary location coverage? - CORRECT ANSWER-1) When at customers
premises on a pre-sale trial basis
2) When at warehouse awaiting pickup by client
What are 3 coverages found in EDP Policies? - CORRECT ANSWER-1) Loss to data
processing systems and components (hardware)
2) Loss to data processing media and programs (software)
3) Extra Expenses
What are 2 key coverage advantages provided by section I of EDP Policies? -
CORRECT ANSWER-1) Broad water losses
2) Mechanical & Electrical breakdown
List 5 causes of mechanical and electrical breakdown insured by EDP Policies? -
CORRECT ANSWER-1) Error in machine programing
2) Processing
3) Short Circuit
4) Dampness or dryness or atmosphere
5) Extremes of temperature
What limit of coverage is available to insure Valuable Papers & Records while off
premises? - CORRECT ANSWER-10% of amount of insurance or $5000, whichever is
less
What type of electrical disturbance is insured by Valuable Papers & Records while off
premises? - CORRECT ANSWER-when it is caused by lightning
, What 2 factors influence premiums to be charged on both Accounts Receivable and
Valuable Papers & Records coverage - CORRECT ANSWER-1) Availability of
duplicates
2) Quality of described receptacle
When can coverages be extended to insure Valuable Papers & Records while off
premises (2) - CORRECT ANSWER-1) When being transported outside premises
2) When at other premises on a temporary basis
What are 4 coverages provided by accounts receivable form and provide an example of
each - CORRECT ANSWER-1) Amounts which cannot be collected due to loss of
accounts receivable records (Ex: client doesn't remember entire list of customers who
owe)
2) Interest on loans your client needs to pay current liabilities (Ex: supplier must be paid
prior to settlement)
3) Extra costs in collection of accounts receivable (Ex: paying a collection agencies or
overtime to staff trying to collect accounts)
4) Expenses incurred in the reconstruction of records (Ex: hiring an accountant to
reconstruct AR list)
What are 4 coverages automatically included in commercial package policies -
CORRECT ANSWER-1) Property Insurance
2) Business Interruption
3) Liability Insurance
4) Crime Insurance
What are 5 considerations that may result in lower premiums - CORRECT ANSWER-1)
Building constructed after 1945
2) Sprinklered
3) Alarmed
4) Sole Occupant
5) Increased deductible
