CAIB 2 Chapter 5 Practice Test 1 exam 2024 with 100%
correct answers
Define Bailee for Hire. - ANS-Person or organization who has temporary custody of the
n n n n n n n n n n n n n
personal property of
n n n
another for a purpose other than sale and who is compensated as a condition of such
n n n n n n n n n n n n n n n
custody
n
Identify three types of Bailees and provide an example of each. - ANS-i) Repair of
n n n n n n n n n n n n n n
npersonal property n
example: Television repair shop n n n
ii) Storage of personal property
n n n n
example: Public storage warehouse n n n
iii) Delivery of personal property
n n n n
example: Courier service n n
Define Ordinary Care. - ANS-Requirement to take the same care of the goods of others
n n n n n n n n n n n n n n
as would be taken by a
n n n n n n
prudent and diligent owner of such goods
n n n n n n
When could bailees be responsible for damage to customer's property? - ANS-Bailees
n n n n n n n n n n n
may be responsible for damage to customer's property when negligent in
n n n n n n n n n n n
common law or in contract n n n n
Other than stock coverage found on Bailee's commercial property policies, what
n n n n n n n n n n
are two other policies that could be used to insure customer's property? - ANS-i)
n n n n n n n n n n n n n
nSeparate policy covering legal liability of bailee n n n n n n
ii) Specialized policy insuring customer's property which ignores requirement for
n n n n n n n n n
legal liability n
By knowing answers to certain questions, brokers should understand whether the
n n n n n n n n n n
ncarrier or the owner of property should purchase insurance when selling Inland
n n n n n n n n n n n
Transportation Insurance. What are these questions? - ANS-i) Who would be n n n n n n n n n n
nresponsible for loss to property n n n n
ii) What is the extent of responsibility
n n n n n n
Define Common Carrier. - ANS-Common carriers are those transportation companies
n n n n n n n n n
nthat will provide n n
transportation services to any person needing their services n n n n n n n
correct answers
Define Bailee for Hire. - ANS-Person or organization who has temporary custody of the
n n n n n n n n n n n n n
personal property of
n n n
another for a purpose other than sale and who is compensated as a condition of such
n n n n n n n n n n n n n n n
custody
n
Identify three types of Bailees and provide an example of each. - ANS-i) Repair of
n n n n n n n n n n n n n n
npersonal property n
example: Television repair shop n n n
ii) Storage of personal property
n n n n
example: Public storage warehouse n n n
iii) Delivery of personal property
n n n n
example: Courier service n n
Define Ordinary Care. - ANS-Requirement to take the same care of the goods of others
n n n n n n n n n n n n n n
as would be taken by a
n n n n n n
prudent and diligent owner of such goods
n n n n n n
When could bailees be responsible for damage to customer's property? - ANS-Bailees
n n n n n n n n n n n
may be responsible for damage to customer's property when negligent in
n n n n n n n n n n n
common law or in contract n n n n
Other than stock coverage found on Bailee's commercial property policies, what
n n n n n n n n n n
are two other policies that could be used to insure customer's property? - ANS-i)
n n n n n n n n n n n n n
nSeparate policy covering legal liability of bailee n n n n n n
ii) Specialized policy insuring customer's property which ignores requirement for
n n n n n n n n n
legal liability n
By knowing answers to certain questions, brokers should understand whether the
n n n n n n n n n n
ncarrier or the owner of property should purchase insurance when selling Inland
n n n n n n n n n n n
Transportation Insurance. What are these questions? - ANS-i) Who would be n n n n n n n n n n
nresponsible for loss to property n n n n
ii) What is the extent of responsibility
n n n n n n
Define Common Carrier. - ANS-Common carriers are those transportation companies
n n n n n n n n n
nthat will provide n n
transportation services to any person needing their services n n n n n n n
