CAIB 2 Chapter 1 Practice Exam 1 Questions and Answers

CAIB 2 Chapter 1 Practice exam 1




Explain what it means to issue insurance on a scheduled basis - Answer-Only the property listed or
scheduled on the policy is insured



Explain what is meant to issue insurance on the basis of Property of Every Description - Answer-
Building, stock and equipment are insured under a single limit of insurance



Explain what it means to issue insurance on an all property (blanket) basis - Answer-All property owned
by the insured is insured under a single limit of insurance. All property blanket may insure property at
more than one location



In commercial property policies, identify six components used to define a building - Answer-1) Building
described on the declaration page

2) Fixed structures pertaining to the building and located on the premises

3) Additions and extensions communicating and in contact with the building

5) Materials, equipment and supplies on the premises for maintenance of, and normal repairs and minor
alterations to the building or for building services

6) Growing plants, trees, shrubs or flowers inside the building used for decorative purposes when the
insured is the owner of the building