CAIB 3 Exam 2024 Questions and Answers
D. Is primarily concerned with the compensation of victims for their losses - ANS-The
n n n n n n n n n n n n n
following statements respecting the brach of law known as "criminal law" are true
n n n n n n n n n n n n n
except one. Pick the exception:
n n n n n
A. Addresses wrongs directed against the state
n n n n n n
B. Authorities have a duty to prosecute and punish wrongdoers and are not required to
n n n n n n n n n n n n n n
wait for the victim to file formal charges before taking action
n n n n n n n n n n n n
C. Uses punitive sanctions as a men's of enforcing its many rules
n n n n n n n n n n n n
D. Is primarily concerned with the compensation of victims for their losses
n n n n n n n n n n n
B. Workers compensation acts provide for no fault insurance benefits and remove right
n n n n n n n n n n n n
of employees to sue their employers - ANS-Muck it up construction inc., employs over
n n n n n n n n n n n n n n
35 people at its various project sites. Its president, Kon Krete, is concerned about the
n n n n n n n n n n n n n n n
possibility of a liability suit being laid against the firm in the event one or more
n n n n n n n n n n n n n n n n
employees is injured on the job. The following statement best describes the extent to
n n n n n n n n n n n n n n
which the law of use Mac it up's liability for injuries caused two employees on the job:
n n n n n n n n n n n n n n n n n
A. Employee is responsible to obtain own coverage under a private Accident and
n n n n n n n n n n n n
Sickness
n n
B. Workers compensation acts provide for no fault insurance benefits and remove right
n n n n n n n n n n n n
of employees to sue their employers
n n n n n n n
C. Employee is fully insured through contributions made to unemployment insurance
n n n n n n n n n n
commission
n
D. Employee always has the option to use the employer for additional damages beyond
n n n n n n n n n n n n n
those awarded under a provincial workers compensation plan
n n n n n n n n
A. General damages - ANS-In a recent judgement against your client, the judge
n n n n n n n n n n n n
awarded damages in the amount of $1,300,000 for "pain and suffering" and "future
n n n n n n n n n n n n n
earnings". These damages are knowns as:
n n n n n n
A. General Damages
n n
B. Special Damages
n n
C. Exemplary Damages
n n n
D. Nominal Daamages
n n
A. Criminal liability - ANS-The commercial general liability policy insures all of the
n n n n n n n n n n n n
following liabilities of business owners except one. Pick the exception:
n n n n n n n n n n
A. Criminal Liability
n n n
B. Tort Liability
n n n
C. Certain Contractual Liability
n n n n
D. Statutory Liability
n n
,B. Canada and the United States (including territories and possessions) - ANS-The
n n n n n n n n n n n
coverage territory insured under the commercial general liability policy is, with the
n n n n n n n n n n n n
exception of products liability policy is influenced by all of the following factors except
n n n n n n n n n n n n n n
one. Pick the exception:
n n n n
A. Canada
n n
B. Canada and the United States (including territories and positions)
n n n n n n n n n
C. Canada in the continental United States
n n n n n n
D. Canada and the US excluding Hawaii and Alaska
n n n n n n n n
A. Size or area of the plant or factory - ANS-The determination of the premium to be
n n n n n n n n n n n n n n n n
charged for products liability coverage under the commercial general liability policy by
n n n n n n n n n n n n
all of the following factors, except one. Pick the exception:
n n n n n n n n n n
A. Size or area of the plant or factory
n n n n n n n n
B. Types of products made or sold
n n n n n n
C. Sales volume
n n
D. Territory and which products are sold
n n n n n n
B. To ensure the legal liability of a business when its products cause an injury or
n n n n n n n n n n n n n n n
damage - ANS-Products liability insurance is designed to:
n n n n n n n n
A. To pay for replacement of faulty products when a consumer complaints
n n n n n n n n n n n
B. To ensure the legal liability of a business when it's products cause injury or damage
n n n n n n n n n n n n n n n
C. To pay for loss of use caused by A new product that is being tested
n n n n n n n n n n n n n n n
D. To pay for the cost of recalling a defective products after release from the insurance
n n n n n n n n n n n n n n n
premises
n
C. Slander - ANS-Which of the following describes spoken deformation
n n n n n n n n n
A. Malicious prosecution
n n
B. Libel
n
C. Slander
n
D. Trespass
n
C. 3 million - ANS-What limit of liability is required for public buses with seating capacity
n n n n n n n n n n n n n n n
of 16 persons or more having extra provincial operations required in Canada:
n n n n n n n n n n n n
A. 200,000
n
B. 250,000
n
C. 3 million
n n
D. 1 million
n n
C. Arrange for coverage E to be endorsed as in B above and attached to waiver of legal
n n n n n n n n n n n n n n n n n
liability endorsement - ANS-Your clients operate a repair a garage and a large number
n n n n n n n n n n n n n n
of customers automobiles are kept on the premises overnight. Your clients have asked
n n n n n n n n n n n n n
you to ensure that the coverage is provided for these automobiles regardless of fault.
n n n n n n n n n n n n n n
To provide the best coverage for your clients, you would:
n n n n n n n n n n
A. Arrange for coverage to be provided under section E - legal liability to customers
n n n n n n n n n n n n n n
, B. Arrange for the SEF number 77 - legal liability for comprehensive damage to
n n n n n n n n n n n n n
customers automobiles endorsement (including open lot pilferage) SPF number 4
n n n n n n n n n n
standard garage auto policy
n n n n
C. Arrange for coverage E to be endorsed as in B above and attached to waiver of legal
n n n n n n n n n n n n n n n n n
liability endorsement
n n
D. Arrange the SEF number 76 additional insured endorsement broad form to be added
n n n n n n n n n n n n n
to all policy coverage under the SPF number for standard garage auto policy
n n n n n n n n n n n n n
C. 200,000 - ANS-Financial responsibility lies and act in each of the common law
n n n n n n n n n n n n n
provinces require that owners of automobiles be able to establish their ability to pay
n n n n n n n n n n n n n n
losses up to a certain minimum dollar limit. The minimum legislated limits of third-party
n n n n n n n n n n n n n n
liability coverage required to be carried by automobiles and the private passenger type
n n n n n n n n n n n n n
in each of the common all provinces is:
n n n n n n n n
A. 50,000
n
B. 100,000
n
C. 200,000
n
D. 250,000
n
A. Straight bill of lading - ANS-There are many different kinds of bills of lading. One type
n n n n n n n n n n n n n n n n
is that which instructs the carriers to deliver the goods to the names consignee only and
n n n n n n n n n n n n n n n n
any arrangements to the contrary are not permitted. The above instructions would
n n n n n n n n n n n n
normally be found in the following type of bill of lading
n n n n n n n n n n n
A. Straight Bill of lading
n n n n
B. Order bill of leading
n n n n
C. Release bill of lading
n n n n
D. Valued bill of lading
n n n n
C. Draft - ANS-The method of paying for goods undergoing the ocean voyage is
n n n n n n n n n n n n n
normally addressed by the terms of sale. Under the terms of sale your client has with
n n n n n n n n n n n n n n n n
the seller, payment is required to be made at the time the billing is presented the
n n n n n n n n n n n n n n n n
following best describes this method of payment:
n n n n n n n
A. Cash in advance
n n n
B. Open account
n n
C. Draft
n
D. Letter of credit
n n n
B. Bank teller - ANS-The fiduciary bond would generally be required of all of the
n n n n n n n n n n n n n n
following persons except one. Pick the exception
n n n n n n n
A. Administrator of the estate
n n n n
B. Bank teller
n n
C. Trustees in bankruptcy
n n n
D. Guardian
n
A. Are two party contracts - ANS-Contracts of suretyship are not insurance contracts,
n n n n n n n n n n n n
and indeed, there are many Differences between them. All of the following statements
n n n n n n n n n n n n n
regarding suretyship bonds are true, except one. Pick the exception
n n n n n n n n n n
D. Is primarily concerned with the compensation of victims for their losses - ANS-The
n n n n n n n n n n n n n
following statements respecting the brach of law known as "criminal law" are true
n n n n n n n n n n n n n
except one. Pick the exception:
n n n n n
A. Addresses wrongs directed against the state
n n n n n n
B. Authorities have a duty to prosecute and punish wrongdoers and are not required to
n n n n n n n n n n n n n n
wait for the victim to file formal charges before taking action
n n n n n n n n n n n n
C. Uses punitive sanctions as a men's of enforcing its many rules
n n n n n n n n n n n n
D. Is primarily concerned with the compensation of victims for their losses
n n n n n n n n n n n
B. Workers compensation acts provide for no fault insurance benefits and remove right
n n n n n n n n n n n n
of employees to sue their employers - ANS-Muck it up construction inc., employs over
n n n n n n n n n n n n n n
35 people at its various project sites. Its president, Kon Krete, is concerned about the
n n n n n n n n n n n n n n n
possibility of a liability suit being laid against the firm in the event one or more
n n n n n n n n n n n n n n n n
employees is injured on the job. The following statement best describes the extent to
n n n n n n n n n n n n n n
which the law of use Mac it up's liability for injuries caused two employees on the job:
n n n n n n n n n n n n n n n n n
A. Employee is responsible to obtain own coverage under a private Accident and
n n n n n n n n n n n n
Sickness
n n
B. Workers compensation acts provide for no fault insurance benefits and remove right
n n n n n n n n n n n n
of employees to sue their employers
n n n n n n n
C. Employee is fully insured through contributions made to unemployment insurance
n n n n n n n n n n
commission
n
D. Employee always has the option to use the employer for additional damages beyond
n n n n n n n n n n n n n
those awarded under a provincial workers compensation plan
n n n n n n n n
A. General damages - ANS-In a recent judgement against your client, the judge
n n n n n n n n n n n n
awarded damages in the amount of $1,300,000 for "pain and suffering" and "future
n n n n n n n n n n n n n
earnings". These damages are knowns as:
n n n n n n
A. General Damages
n n
B. Special Damages
n n
C. Exemplary Damages
n n n
D. Nominal Daamages
n n
A. Criminal liability - ANS-The commercial general liability policy insures all of the
n n n n n n n n n n n n
following liabilities of business owners except one. Pick the exception:
n n n n n n n n n n
A. Criminal Liability
n n n
B. Tort Liability
n n n
C. Certain Contractual Liability
n n n n
D. Statutory Liability
n n
,B. Canada and the United States (including territories and possessions) - ANS-The
n n n n n n n n n n n
coverage territory insured under the commercial general liability policy is, with the
n n n n n n n n n n n n
exception of products liability policy is influenced by all of the following factors except
n n n n n n n n n n n n n n
one. Pick the exception:
n n n n
A. Canada
n n
B. Canada and the United States (including territories and positions)
n n n n n n n n n
C. Canada in the continental United States
n n n n n n
D. Canada and the US excluding Hawaii and Alaska
n n n n n n n n
A. Size or area of the plant or factory - ANS-The determination of the premium to be
n n n n n n n n n n n n n n n n
charged for products liability coverage under the commercial general liability policy by
n n n n n n n n n n n n
all of the following factors, except one. Pick the exception:
n n n n n n n n n n
A. Size or area of the plant or factory
n n n n n n n n
B. Types of products made or sold
n n n n n n
C. Sales volume
n n
D. Territory and which products are sold
n n n n n n
B. To ensure the legal liability of a business when its products cause an injury or
n n n n n n n n n n n n n n n
damage - ANS-Products liability insurance is designed to:
n n n n n n n n
A. To pay for replacement of faulty products when a consumer complaints
n n n n n n n n n n n
B. To ensure the legal liability of a business when it's products cause injury or damage
n n n n n n n n n n n n n n n
C. To pay for loss of use caused by A new product that is being tested
n n n n n n n n n n n n n n n
D. To pay for the cost of recalling a defective products after release from the insurance
n n n n n n n n n n n n n n n
premises
n
C. Slander - ANS-Which of the following describes spoken deformation
n n n n n n n n n
A. Malicious prosecution
n n
B. Libel
n
C. Slander
n
D. Trespass
n
C. 3 million - ANS-What limit of liability is required for public buses with seating capacity
n n n n n n n n n n n n n n n
of 16 persons or more having extra provincial operations required in Canada:
n n n n n n n n n n n n
A. 200,000
n
B. 250,000
n
C. 3 million
n n
D. 1 million
n n
C. Arrange for coverage E to be endorsed as in B above and attached to waiver of legal
n n n n n n n n n n n n n n n n n
liability endorsement - ANS-Your clients operate a repair a garage and a large number
n n n n n n n n n n n n n n
of customers automobiles are kept on the premises overnight. Your clients have asked
n n n n n n n n n n n n n
you to ensure that the coverage is provided for these automobiles regardless of fault.
n n n n n n n n n n n n n n
To provide the best coverage for your clients, you would:
n n n n n n n n n n
A. Arrange for coverage to be provided under section E - legal liability to customers
n n n n n n n n n n n n n n
, B. Arrange for the SEF number 77 - legal liability for comprehensive damage to
n n n n n n n n n n n n n
customers automobiles endorsement (including open lot pilferage) SPF number 4
n n n n n n n n n n
standard garage auto policy
n n n n
C. Arrange for coverage E to be endorsed as in B above and attached to waiver of legal
n n n n n n n n n n n n n n n n n
liability endorsement
n n
D. Arrange the SEF number 76 additional insured endorsement broad form to be added
n n n n n n n n n n n n n
to all policy coverage under the SPF number for standard garage auto policy
n n n n n n n n n n n n n
C. 200,000 - ANS-Financial responsibility lies and act in each of the common law
n n n n n n n n n n n n n
provinces require that owners of automobiles be able to establish their ability to pay
n n n n n n n n n n n n n n
losses up to a certain minimum dollar limit. The minimum legislated limits of third-party
n n n n n n n n n n n n n n
liability coverage required to be carried by automobiles and the private passenger type
n n n n n n n n n n n n n
in each of the common all provinces is:
n n n n n n n n
A. 50,000
n
B. 100,000
n
C. 200,000
n
D. 250,000
n
A. Straight bill of lading - ANS-There are many different kinds of bills of lading. One type
n n n n n n n n n n n n n n n n
is that which instructs the carriers to deliver the goods to the names consignee only and
n n n n n n n n n n n n n n n n
any arrangements to the contrary are not permitted. The above instructions would
n n n n n n n n n n n n
normally be found in the following type of bill of lading
n n n n n n n n n n n
A. Straight Bill of lading
n n n n
B. Order bill of leading
n n n n
C. Release bill of lading
n n n n
D. Valued bill of lading
n n n n
C. Draft - ANS-The method of paying for goods undergoing the ocean voyage is
n n n n n n n n n n n n n
normally addressed by the terms of sale. Under the terms of sale your client has with
n n n n n n n n n n n n n n n n
the seller, payment is required to be made at the time the billing is presented the
n n n n n n n n n n n n n n n n
following best describes this method of payment:
n n n n n n n
A. Cash in advance
n n n
B. Open account
n n
C. Draft
n
D. Letter of credit
n n n
B. Bank teller - ANS-The fiduciary bond would generally be required of all of the
n n n n n n n n n n n n n n
following persons except one. Pick the exception
n n n n n n n
A. Administrator of the estate
n n n n
B. Bank teller
n n
C. Trustees in bankruptcy
n n n
D. Guardian
n
A. Are two party contracts - ANS-Contracts of suretyship are not insurance contracts,
n n n n n n n n n n n n
and indeed, there are many Differences between them. All of the following statements
n n n n n n n n n n n n n
regarding suretyship bonds are true, except one. Pick the exception
n n n n n n n n n n
