CAIB 1 Practice Exam
All of the following factors except one are used to determine the ACV of insured property. Pick the
exception.
A - condition of the object.
B - sentimental value.
C - re-sale value.
D - normal life expectancy - Answer-B - sentimental value.
The Indemnity Agreement in property insurance policies states that in the event of a loss, the insurer
will pay the lesser of three amounts in the event of a claim. One factor which does not enter into this
calculation is
A - the actual cash value of the property
B - the original cost of the property
C - the insured's interest in the property
D - the policy limit - Answer-B - the original cost of the property
Under the various Homeowners Forms available today which of the following is not an "insured"?
A - Insured's grandmother who also lives at the dwelling insured by the policy
B - 16-year-old foster child left in the care of the insured
C - Insured's daughter, age 22, who is living at home while attending university
All of the following factors except one are used to determine the ACV of insured property. Pick the
exception.
A - condition of the object.
B - sentimental value.
C - re-sale value.
D - normal life expectancy - Answer-B - sentimental value.
The Indemnity Agreement in property insurance policies states that in the event of a loss, the insurer
will pay the lesser of three amounts in the event of a claim. One factor which does not enter into this
calculation is
A - the actual cash value of the property
B - the original cost of the property
C - the insured's interest in the property
D - the policy limit - Answer-B - the original cost of the property
Under the various Homeowners Forms available today which of the following is not an "insured"?
A - Insured's grandmother who also lives at the dwelling insured by the policy
B - 16-year-old foster child left in the care of the insured
C - Insured's daughter, age 22, who is living at home while attending university
