CAIB 1 QUESTIONS AND VERIFIED SOLUTIONS 2
Strict Liability - ✔✔A person is guilty until proven innocent Ethics - ✔✔The principals of
conduct governing an individual or group Self-Regulation - ✔✔The right of an industry to
govern its own affairs Unidentified Automobile - ✔✔One in which the identity of either the
owner or driver cannot be ascertained and which causes bodily injury or death to the
insured person. Notice of Loss - ✔✔Immediate report of loss to insurer by the insured or
his representative (agent) in writing Newly Acquired Auto - ✔✔One which replaces an
automobile described on the policy or is in addition to others owned by the insured which
are all insured by the same insurer. Step Licensing - ✔✔A system which requires a higher
degree of knowledge for each increasing step Professional - ✔✔Is one who processes
special skills or knowledge Uninsured Automobile - ✔✔One in which neither the driver nor
the owner has collectible bodily injury liability insurance General Average - ✔✔Designed to
provide payment for ocean marine losses voluntarily incurred for the safety of the entire
venture. Insurers of the parties who property was saved will contribute to the losses of the
parties whose property was sacrificed Occupant - ✔✔Any person who drives the
automobile or is being carried on or upon or entering into or leaving the automobile Pink
Card - ✔✔Is used to provide proof of financial responsibility Facility Association - ✔✔An
insurance pool in which all licensed automobile insurers participate and which provides
insurance to those who may be refused insurance by private insurers Farming -
✔✔Ownership, maintenance or use of premises for the production of crops or the raising
or care of livestock, including all necessary operations Residence Employee - ✔✔Those
whose duties are exclusively in connection or maintenance and use of the residence
premises Trespasser - ✔✔one who intentionally and without consent or privilege enters
another's property Driver's Abstract - ✔✔A record of the driver history of the applicant and
other drivers which can be obtained from provincial licensing authorities Custom Farming -
✔✔Use of insured's farm machinery or equipment for others away from insured's farm
premises for compensation. It does NOT include work done for others in return for work
done by them. Farm Employee - ✔✔Those paid for their work and who are hired on a part
time, seasonal or full time basis to perform duties principally connected with farming
activities outside the insureds dwelling Licensee - ✔✔Is someone who comes onto the
premises for his own purpose but with occupiers consent Invitee - ✔✔Someone who
enters by invitation be it express or implied. Entry connected with owners business or
activity the owner conducts Plantiff - ✔✔The party making the complaint Hostile Fire -
✔✔a fire that leaves its intended place, such as a spark that escapes a fireplace and sets
, the carpet on fire Fine Arts Endorsement - ✔✔Traditionally includes pictures, paintings,
works of rarity and historical value Negligence - ✔✔The doing of something that a
reasonable and prudent man wouldn't do General Damages - ✔✔Damages which cannot
be exactly determined but which reflect an amount the court believes necessary to
compensate the aggrieved party fairly. Short Rate Basis - ✔✔The basis of return premium
calculation when the insured cancels the policy. Criminal Law - ✔✔Deals with wrongs
against society joint liability - ✔✔When two or three people act together so as to cause
injury or damage Deductible - ✔✔Represents the amount of money the insured is required
to pay for each loss for which insurance coverage is provided before payment from he
insurer Endorsement - ✔✔A extra sheet of paper, that's attached to the policy indicating in
writing that the insured and the insurer have agreed to a change in the terms of the
insurance contract Special Damages - ✔✔compensation for out-of-pocket expenses
Defendant - ✔✔The party who allegedly committed the wrong Condiminium - ✔✔A system
of separate ownership of individual units in a multiple unit building Friendly Fire - ✔✔a fire
that is contained in its proper receptacle Proximate Result - ✔✔Damage which arises from
a natural or continuous sequence of the peril causing the loss Fire - ✔✔Involves the
presence of a visible flame or glow, actual ignition or burning is required Fiduciary - ✔✔a
person in a special position who holds assets in trust for a beneficiary Non-Proprietary
Insurers - ✔✔insurance companies which are organized for reasons other than profit. They
are owned and controlled by their policyholders and their mandate is to secure insurance
at as low a cost as possible Tort - ✔✔A wrong done to another in breach of a duty laid down
by law Proof of Loss - ✔✔a formal verification, under oath, of the details and amounts
being claimed under the policy Mobile Home - ✔✔Home factory built on its own chassis
and which can be easily moved Visitor - ✔✔Classification given to a licensee or invitee
under provincial Occupier's Liability Acts Proprietary Insurers - ✔✔Insurance companies
which exist to make a profit or return on their investment Material Change - ✔✔is any
change within the control and knowledge of the insured and which arises after the policy
has been issued and serves to increase the chance of loss temporary substitute vehicle -
✔✔One which is temporarily being used as a substitute for the auto described on the
policy of its been broken down, repaired, servicing, loss etc Pro Rata - ✔✔Basis of return
premium when the insurer cancels the policy. Vacant - ✔✔All occupants have moved out
with no intention of returning and no new occupant has taken up residence Civil Law -
✔✔Law concerns itself with settling disputes between individuals or legal entities in
matters not involving a criminal act Valued Policy - ✔✔The insured and insurer agree at the
time of the policy is issued as to the cash value of the property. In the event of a loss, the
Strict Liability - ✔✔A person is guilty until proven innocent Ethics - ✔✔The principals of
conduct governing an individual or group Self-Regulation - ✔✔The right of an industry to
govern its own affairs Unidentified Automobile - ✔✔One in which the identity of either the
owner or driver cannot be ascertained and which causes bodily injury or death to the
insured person. Notice of Loss - ✔✔Immediate report of loss to insurer by the insured or
his representative (agent) in writing Newly Acquired Auto - ✔✔One which replaces an
automobile described on the policy or is in addition to others owned by the insured which
are all insured by the same insurer. Step Licensing - ✔✔A system which requires a higher
degree of knowledge for each increasing step Professional - ✔✔Is one who processes
special skills or knowledge Uninsured Automobile - ✔✔One in which neither the driver nor
the owner has collectible bodily injury liability insurance General Average - ✔✔Designed to
provide payment for ocean marine losses voluntarily incurred for the safety of the entire
venture. Insurers of the parties who property was saved will contribute to the losses of the
parties whose property was sacrificed Occupant - ✔✔Any person who drives the
automobile or is being carried on or upon or entering into or leaving the automobile Pink
Card - ✔✔Is used to provide proof of financial responsibility Facility Association - ✔✔An
insurance pool in which all licensed automobile insurers participate and which provides
insurance to those who may be refused insurance by private insurers Farming -
✔✔Ownership, maintenance or use of premises for the production of crops or the raising
or care of livestock, including all necessary operations Residence Employee - ✔✔Those
whose duties are exclusively in connection or maintenance and use of the residence
premises Trespasser - ✔✔one who intentionally and without consent or privilege enters
another's property Driver's Abstract - ✔✔A record of the driver history of the applicant and
other drivers which can be obtained from provincial licensing authorities Custom Farming -
✔✔Use of insured's farm machinery or equipment for others away from insured's farm
premises for compensation. It does NOT include work done for others in return for work
done by them. Farm Employee - ✔✔Those paid for their work and who are hired on a part
time, seasonal or full time basis to perform duties principally connected with farming
activities outside the insureds dwelling Licensee - ✔✔Is someone who comes onto the
premises for his own purpose but with occupiers consent Invitee - ✔✔Someone who
enters by invitation be it express or implied. Entry connected with owners business or
activity the owner conducts Plantiff - ✔✔The party making the complaint Hostile Fire -
✔✔a fire that leaves its intended place, such as a spark that escapes a fireplace and sets
, the carpet on fire Fine Arts Endorsement - ✔✔Traditionally includes pictures, paintings,
works of rarity and historical value Negligence - ✔✔The doing of something that a
reasonable and prudent man wouldn't do General Damages - ✔✔Damages which cannot
be exactly determined but which reflect an amount the court believes necessary to
compensate the aggrieved party fairly. Short Rate Basis - ✔✔The basis of return premium
calculation when the insured cancels the policy. Criminal Law - ✔✔Deals with wrongs
against society joint liability - ✔✔When two or three people act together so as to cause
injury or damage Deductible - ✔✔Represents the amount of money the insured is required
to pay for each loss for which insurance coverage is provided before payment from he
insurer Endorsement - ✔✔A extra sheet of paper, that's attached to the policy indicating in
writing that the insured and the insurer have agreed to a change in the terms of the
insurance contract Special Damages - ✔✔compensation for out-of-pocket expenses
Defendant - ✔✔The party who allegedly committed the wrong Condiminium - ✔✔A system
of separate ownership of individual units in a multiple unit building Friendly Fire - ✔✔a fire
that is contained in its proper receptacle Proximate Result - ✔✔Damage which arises from
a natural or continuous sequence of the peril causing the loss Fire - ✔✔Involves the
presence of a visible flame or glow, actual ignition or burning is required Fiduciary - ✔✔a
person in a special position who holds assets in trust for a beneficiary Non-Proprietary
Insurers - ✔✔insurance companies which are organized for reasons other than profit. They
are owned and controlled by their policyholders and their mandate is to secure insurance
at as low a cost as possible Tort - ✔✔A wrong done to another in breach of a duty laid down
by law Proof of Loss - ✔✔a formal verification, under oath, of the details and amounts
being claimed under the policy Mobile Home - ✔✔Home factory built on its own chassis
and which can be easily moved Visitor - ✔✔Classification given to a licensee or invitee
under provincial Occupier's Liability Acts Proprietary Insurers - ✔✔Insurance companies
which exist to make a profit or return on their investment Material Change - ✔✔is any
change within the control and knowledge of the insured and which arises after the policy
has been issued and serves to increase the chance of loss temporary substitute vehicle -
✔✔One which is temporarily being used as a substitute for the auto described on the
policy of its been broken down, repaired, servicing, loss etc Pro Rata - ✔✔Basis of return
premium when the insurer cancels the policy. Vacant - ✔✔All occupants have moved out
with no intention of returning and no new occupant has taken up residence Civil Law -
✔✔Law concerns itself with settling disputes between individuals or legal entities in
matters not involving a criminal act Valued Policy - ✔✔The insured and insurer agree at the
time of the policy is issued as to the cash value of the property. In the event of a loss, the
