CAIB 1 PRACTICE EXAM (NEWEST
VERSION) | ALL QUESTIONS AND
CORRECT ANSWERS (DETAILED
ANSWERS) | GRADED A+ |
VERIFIED ANSWERS | LATEST
EXAM
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Terms in this set (38)
,Insurers are in Insurable Interest
the business of Utmost Good Faith
assuming the Indemnity
financial risks of
others which
involves entering
into a formal
contract. A
contract is
enforceable at
law only when
all legal
elements have
been observed.
Insurance
contracts differ
from other
formal
agreements and
are subject to
what three
additional
elements?
, Avoidance: Avoidance means that all
chance of financial loss has been
eliminated or a decision not to do
Explain the
something. The disadvantage is its
meaning and
not very effective as often the
disadvantage of
elimination of one exposure creates
the following
another in its place.
approaches:
Control: taking measures to reduce
Avoidance of
the frequency and severity of losses.
Risk & Control of
The disadvantage is that not all
Risk
losses can be controlled, because
equipment will not work 100% of the
time
Identify the Insurable Interest, Utmost Good
three elements Faith, and Indemnity
that are unique
to contracts of
insurance:
, The Insurance Entitled to receive payment for the
Act restricts actual amount of the loss, no more
payment for an and no less. The measure is the
insured loss to value of the object of insurance as it
those amounts was immediately before the loss.
required to
indemnify the
Insured. Indicate
the amount the
Insured is legally
entitled to
receive and the
measure used to
determine this
value.
VERSION) | ALL QUESTIONS AND
CORRECT ANSWERS (DETAILED
ANSWERS) | GRADED A+ |
VERIFIED ANSWERS | LATEST
EXAM
Save
Terms in this set (38)
,Insurers are in Insurable Interest
the business of Utmost Good Faith
assuming the Indemnity
financial risks of
others which
involves entering
into a formal
contract. A
contract is
enforceable at
law only when
all legal
elements have
been observed.
Insurance
contracts differ
from other
formal
agreements and
are subject to
what three
additional
elements?
, Avoidance: Avoidance means that all
chance of financial loss has been
eliminated or a decision not to do
Explain the
something. The disadvantage is its
meaning and
not very effective as often the
disadvantage of
elimination of one exposure creates
the following
another in its place.
approaches:
Control: taking measures to reduce
Avoidance of
the frequency and severity of losses.
Risk & Control of
The disadvantage is that not all
Risk
losses can be controlled, because
equipment will not work 100% of the
time
Identify the Insurable Interest, Utmost Good
three elements Faith, and Indemnity
that are unique
to contracts of
insurance:
, The Insurance Entitled to receive payment for the
Act restricts actual amount of the loss, no more
payment for an and no less. The measure is the
insured loss to value of the object of insurance as it
those amounts was immediately before the loss.
required to
indemnify the
Insured. Indicate
the amount the
Insured is legally
entitled to
receive and the
measure used to
determine this
value.
