CAIB 2 - Chapter 2 Exam Questions and
Answers
An application and submission are not the same thing. What is the difference? - ANS-A
submission is a proposal for insurance, which has been presented to the underwriter for
consideration
What three things can a submission include? - ANS-An application
Additional verbal information
Additional written information, including previous policy, premium loss, history, details of
losses, financial statements, and photographs
A brokers roll may vary in the underwriting process. What are five things the broker
should do that will ensure that the applicants request for insurance is handled in a timely
and professional manner? - ANS-Completion of a survey
Search for interested insurers
Meet with the prospect to discuss the quotes and select an insurer
Request binding coverage from the selected insurer
Review policy and deliver it to the client
What are three important things that a survey does? - ANS-Assists in the identification
of loss exposures
Helps to determine the coverage that's going to be needed
Develops other underwriting information that will be needed by the insurer
How does a commercial property checklist help the broker? - ANS-Alerts the broker to
possible loss exposures
Ensures that needed coverages are not forgotten or ignored
Helps to reduce the potential for an E & O claim
What are the five classes of building construction? - ANS-Fire resistive
, - Must have met the minimum requirements for withstanding a controlled test fire
usually 2 to 3 hours
Non-combustible
- Buildings falling within this class are often those which fall just short of meeting with
standards to qualify as fire resistive
Heavy timber
- The use of wood or solid or laminated lumber
Ordinary
- Exterior bearing walls or non-combustible materials. Roofs floors and interior framing
are constructed, holy or partially of wood or other combustible materials.
Frame
- Exterior sheeting can consist of wood composition, stucco other brick, plaster, metal,
and Masonary veneers
What five things regarding the building construction are going to be required when the
building is over 25 years old? - ANS-Roof
Wiring
Over-current protection
Plumbing
Heating
What does common hazards mean? - ANS-Common hazards are certain hazards or
condition, common to all buildings, which influence their potential for a loss
What are five common hazards? - ANS-Heating
Electrical services
Detachment
Protection
Occupancy ( other businesses in the same building influence this as well )
With regards to electrical services, which is the most common and preferred? - ANS-
Copper wiring is the most common and preferred
With regards to electrical services what will the wiring being closed in on a superior
risk? - ANS-That's a pure risk will have all of its wiring closed with an a metallic casing
With regards to electrical services, what type of circuit breakers provide the best form of
protection against overcurrent? - ANS-Non-interchangeable circuit breakers provide the
best form of overcurrent protection
Why is detachment an important common hazard to be aware of? - ANS-The proximity
of the building being insured or containing the property being insured to other
Answers
An application and submission are not the same thing. What is the difference? - ANS-A
submission is a proposal for insurance, which has been presented to the underwriter for
consideration
What three things can a submission include? - ANS-An application
Additional verbal information
Additional written information, including previous policy, premium loss, history, details of
losses, financial statements, and photographs
A brokers roll may vary in the underwriting process. What are five things the broker
should do that will ensure that the applicants request for insurance is handled in a timely
and professional manner? - ANS-Completion of a survey
Search for interested insurers
Meet with the prospect to discuss the quotes and select an insurer
Request binding coverage from the selected insurer
Review policy and deliver it to the client
What are three important things that a survey does? - ANS-Assists in the identification
of loss exposures
Helps to determine the coverage that's going to be needed
Develops other underwriting information that will be needed by the insurer
How does a commercial property checklist help the broker? - ANS-Alerts the broker to
possible loss exposures
Ensures that needed coverages are not forgotten or ignored
Helps to reduce the potential for an E & O claim
What are the five classes of building construction? - ANS-Fire resistive
, - Must have met the minimum requirements for withstanding a controlled test fire
usually 2 to 3 hours
Non-combustible
- Buildings falling within this class are often those which fall just short of meeting with
standards to qualify as fire resistive
Heavy timber
- The use of wood or solid or laminated lumber
Ordinary
- Exterior bearing walls or non-combustible materials. Roofs floors and interior framing
are constructed, holy or partially of wood or other combustible materials.
Frame
- Exterior sheeting can consist of wood composition, stucco other brick, plaster, metal,
and Masonary veneers
What five things regarding the building construction are going to be required when the
building is over 25 years old? - ANS-Roof
Wiring
Over-current protection
Plumbing
Heating
What does common hazards mean? - ANS-Common hazards are certain hazards or
condition, common to all buildings, which influence their potential for a loss
What are five common hazards? - ANS-Heating
Electrical services
Detachment
Protection
Occupancy ( other businesses in the same building influence this as well )
With regards to electrical services, which is the most common and preferred? - ANS-
Copper wiring is the most common and preferred
With regards to electrical services what will the wiring being closed in on a superior
risk? - ANS-That's a pure risk will have all of its wiring closed with an a metallic casing
With regards to electrical services, what type of circuit breakers provide the best form of
protection against overcurrent? - ANS-Non-interchangeable circuit breakers provide the
best form of overcurrent protection
Why is detachment an important common hazard to be aware of? - ANS-The proximity
of the building being insured or containing the property being insured to other
