CAIB 1 QUESTIONS AND VERIFIED SOLUTIONS 3
A home that is factory built on its own chassis and which can be easily moved - ✔✔Mobile
Home 1) Fire 2) Windstorm - tie downs for greater stability 3) Hail - some policies contain a
dent clause 4) Transporting - ✔✔Mobile Homes are most susceptible to these kinds of
losses 5% of the amount of insurance on the dwelling can be used to pay for reasonable
expenses for the loss from an insured peril - ✔✔Mobile Homeowners Form - Emergency
Removal Expense Included 1)Loss or damage caused by moving 2) Loss due to conversion,
embezzlement or secretion by any person in possession of the building - ✔✔Mobile
Homeowners Form - Exclusions 1) Those living in apartments 2) Those renting a dwelling or
any portion of it 3) People who receive use of a dwelling as a part of their remuneration -
✔✔People who qualify for Tenant Policies Coverage C - Personal Property i) Improvements
at the expense of the tenant ii) $500 for theft and/or vandalism Coverage D - Additional
Living Expense 20% of Coverage C - Personal Property - ✔✔Coverages provided by Tenants
Package Forms An individually owned housing unit in a building with several such units -
✔✔Condominium The insured a single amount of insurance in its own name - ✔✔The
Condominium Act Requires? 1) The value of the building 2) The value of common elements
- ✔✔The Condominium Act Covers 1) Personal Property Coverage 2) Other Essential
Coverages - Loss assessment, unit improvements or betterment - ✔✔Condominium
Owners are responsible to purchase what type of coverage? 1) Transportation 2)
Burglary/Robbery 3) Vandalism or Malicious Acts 4) Glass Breakage - ✔✔4 Perils that are
covered on homeowners forms that are not automatically covered by Seasonal Residence
Form 1) Must be insured with same insurer 2) Must be a year round residence 3) Must not
be rented 4) Must be heated by furnace or electric 5) Must Be accessible by a maintained
road - ✔✔Requirements that need to be met for a Seasonal Dwelling to be covered under
Homeowners Forms Extra sheet(s) or slip(s) of paper attached to the policy indication in
writing any changes to the contract which are agreed upon - ✔✔Endorsement This
endorsement removes the exclusion for owned trailer on IBC Habitation Forms - ✔✔Travel
Trailer Floater 1) Annual Premium 2) Loss occurs in summer months 3) 75% Retained
premium - ✔✔Minimum retained premium on watercraft policies $20/Day $200/Policy
Year - ✔✔Watercraft - Loss of Use amounts 1) Accumulative Damage 2) Wear & Tear 3)
Work done on insured property 4) Dishonesty 5) Rented or leased to others, carrying
passengers for compensation, being operated in any race - ✔✔Watercraft - Policy
Exclusions 1) Transportation Losses 2) Collision with underwater rocks or objects floating
in the water - ✔✔Watercraft - "All Risk" Coverages 1) The Boat 2) The Motor 3) The boat
trailer 4) Boat Equipment - ✔✔Watercraft - Property Insured Coverage is subject to 10% of
,the total amount on the dwelling, detached private structures & personal property -
✔✔Earthquake Endorsement Broadens coverages for " the back up of water from a sewer
or drain,sump, septic tank, eaves trough or downspout - ✔✔Sewer Back-Up Endorsement
Adds accidental glass breakage coverage - this indorsment is used to reduce the
deductible - ✔✔Residence Glass Endorsement Pays additional costs to demo/repair after
a loss - ✔✔Increased Cost Demolition or Construction High Valued Property ($10,000) -
✔✔Personal Articles Endorsement 1) Increase insurance limits 2) Broadens Coverages 3)
Reduce or eliminate deductibles under those policies 4)Coverage for excluded property or
perils - ✔✔Endorsement Advantages Insurance for objects regarded as fine arts. Ex;
Paintings, pictures, valuable rugs - ✔✔Fine Arts Endorsement 1) Sporting Equipment 2)
Animals, Birds or Fish 3) Outdoor Radio & TV Antennae 4) Wear& Tear or deterioration 5)
Settling, Expansion, Contraction, Moving, Bulging 6) Industrial Smoke Damage 7)
Vandalism 8) Snow slide, Earthquake, Landslide 9) Rust or Corrosion - ✔✔Loss or Damage
NOT Covered Under Comprehensive Form Taking another person's possessions without
consent - ✔✔Theft Occupants have moved out with no intention of returning - ✔✔Vacant
Wrongful act done without legal justification or excuse - ✔✔Malicious Act Intentionally
damaging or destroying another person's property - ✔✔Vandalism 1) Loss or damage to
dwelling / personal property by smoke from a fireplace 2) Collapse of roof from snow load -
✔✔Losses covered under the Comprehensive Form that are NOT covered under the Basic
Form All Risk - ✔✔Comprehensive Form - All property owned by the insured is covered on
_________ basis Sudden & accidental damage from artificially generated currents -
✔✔Basic Form - Peril 13 - Electricity 1) Buildings used in business/farming purposes 2)
Property in fairgrounds 3) Property Illegally acquired 4) Property that has been vacant for 30
days 5) Resulting in intentional act by the insured 6) Personal Property involving application
of heat 7) Discharge of fuel Oil - ✔✔Basic Form Exclusions Taking property without owners
consent - ✔✔Basic Form - Peril 12 - Theft/Damage Caused by Attempted Theft 1) Property
left at another dwelling 2) Renters 3) Dwelling under construction (Materials & Supplies) 4)
Animals, Birds & Fish 5) Resulting in change in ownership - ✔✔Basic Form - Peril 12 -
Theft/Damage Caused by Attempted Theft - Exclusions Insures loss to property while being
transported: 1) Personal Property which has been temporarily removed from the premises
2) Building fixtures and fittings temporarily removed for repair - ✔✔Basic Form - Peril 11 -
Transportation 1) Property in vacation or home trailer owned by insured 2) Watercraft,
furnishings, equipment or motors - ✔✔Basic Form - Peril 11 - Transportation - Exclusions
Accidental Breakage from shifting of the ground - ✔✔Basic Form - Peril 10 - Glass Breakage
Damage to the interior of the dwelling and personal property contained therein is also
, covered when proof that the peril created the damage - loss attributed to waves or floods is
not insured, even if cause by wind. - ✔✔Basic Form - Peril 9 - Windstorm or Hail 1) Sudden
& accidental escape of water from a water main 2) Water or Steam from plumbing, heating,
sprinkler or AC which is located inside the insured's dwelling 3) From a domestic water
container outside your dwelling 4) Water that enters through an opening which has been
created suddenly & accidentally by an insured peril other than water damage - ✔✔Basic
Form - Peril 8 - Water Damage Any damage from tidal waves,flood, sewage backup and
freezing - ✔✔Basic Form - Peril 8 - Water Damage - Exclusions Policy will cover payment fir
property lost or damaged by this peril - ✔✔Basic Form - Peril 7 - Vandalism or Malicious
Acts 1) Occurring while the building is in the course of construction or vacant 2) Caused by
an insured under the policy 3) Caused by theft or attempted theft - ✔✔Basic Form - Peril 7 -
Vandalism or Malicious Acts - Exclusion Coverage is covered under the policy when a riot
happens - ✔✔Basic Form - Peril 6 - Riot If a dwelling is impacted by either of these there is
coverage for the damages - ✔✔Basic Form - Peril 5 - Impact by Aircraft or Land Vehicle 1)
When Damage is caused by an insured or an employee 2) Animals - ✔✔Basic Form - Peril 5
- Impact by Aircraft or Land Vehicle - Exclusions A falling object which strikes the exterior
of a building - ✔✔Basic Form - Peril 4 - Falling Object Smoke due to a heating or cooking
unit - ✔✔Basic Form - Peril 3 - Smoke Smoke damage originating from a fireplace is not
insured under this peril - ✔✔Basic Form - Peril 3 - Smoke - Exclusions Hot water heaters
and domestic boilers used for heating purposes - ✔✔Basic Form - Peril 2 - Explosion
Damage to electrical devices or appliance is covered under this peril - ✔✔Basic Form -
Peril 1 - Fire or Lightning A coverage designed to reimburse the insured for an increase in
living expenses necessitated by loss to the dwelling. This Indirect Loss must be the result
of Direct Loss by a covered Peril. - ✔✔Additional Living Expenses Contents of the insured's
dwelling and other personal property owned, worn or used by the insured while on the
premises, which is usual to the ownership or maintenance of a dwelling - ✔✔Personal
Property Amount you must pay before you begin receiving any benefits from your insurance
company - ✔✔Deductible The cost to repair or replace property using new materials of like
kind and quality with no deduction for depreciation - ✔✔Replacement Cost Additional
Living Expense Only is paid by this - ✔✔Basis of Claim Payment Pays 1) Apply to certain
classes of property 2) Limit is total of each category - ✔✔Special Limits Insureds must take
all steps reasonable to recover lost or damaged property after insured losses - ✔✔Sue and
Labor Insurers Advisory Organization - It provides Insurers with risk inspection and advisory
rating services - ✔✔What does IAO stand for and what is its purpose? Insured must notify
the insurer in writing as soon as possible in the event of any Loss or occurrence. The
A home that is factory built on its own chassis and which can be easily moved - ✔✔Mobile
Home 1) Fire 2) Windstorm - tie downs for greater stability 3) Hail - some policies contain a
dent clause 4) Transporting - ✔✔Mobile Homes are most susceptible to these kinds of
losses 5% of the amount of insurance on the dwelling can be used to pay for reasonable
expenses for the loss from an insured peril - ✔✔Mobile Homeowners Form - Emergency
Removal Expense Included 1)Loss or damage caused by moving 2) Loss due to conversion,
embezzlement or secretion by any person in possession of the building - ✔✔Mobile
Homeowners Form - Exclusions 1) Those living in apartments 2) Those renting a dwelling or
any portion of it 3) People who receive use of a dwelling as a part of their remuneration -
✔✔People who qualify for Tenant Policies Coverage C - Personal Property i) Improvements
at the expense of the tenant ii) $500 for theft and/or vandalism Coverage D - Additional
Living Expense 20% of Coverage C - Personal Property - ✔✔Coverages provided by Tenants
Package Forms An individually owned housing unit in a building with several such units -
✔✔Condominium The insured a single amount of insurance in its own name - ✔✔The
Condominium Act Requires? 1) The value of the building 2) The value of common elements
- ✔✔The Condominium Act Covers 1) Personal Property Coverage 2) Other Essential
Coverages - Loss assessment, unit improvements or betterment - ✔✔Condominium
Owners are responsible to purchase what type of coverage? 1) Transportation 2)
Burglary/Robbery 3) Vandalism or Malicious Acts 4) Glass Breakage - ✔✔4 Perils that are
covered on homeowners forms that are not automatically covered by Seasonal Residence
Form 1) Must be insured with same insurer 2) Must be a year round residence 3) Must not
be rented 4) Must be heated by furnace or electric 5) Must Be accessible by a maintained
road - ✔✔Requirements that need to be met for a Seasonal Dwelling to be covered under
Homeowners Forms Extra sheet(s) or slip(s) of paper attached to the policy indication in
writing any changes to the contract which are agreed upon - ✔✔Endorsement This
endorsement removes the exclusion for owned trailer on IBC Habitation Forms - ✔✔Travel
Trailer Floater 1) Annual Premium 2) Loss occurs in summer months 3) 75% Retained
premium - ✔✔Minimum retained premium on watercraft policies $20/Day $200/Policy
Year - ✔✔Watercraft - Loss of Use amounts 1) Accumulative Damage 2) Wear & Tear 3)
Work done on insured property 4) Dishonesty 5) Rented or leased to others, carrying
passengers for compensation, being operated in any race - ✔✔Watercraft - Policy
Exclusions 1) Transportation Losses 2) Collision with underwater rocks or objects floating
in the water - ✔✔Watercraft - "All Risk" Coverages 1) The Boat 2) The Motor 3) The boat
trailer 4) Boat Equipment - ✔✔Watercraft - Property Insured Coverage is subject to 10% of
,the total amount on the dwelling, detached private structures & personal property -
✔✔Earthquake Endorsement Broadens coverages for " the back up of water from a sewer
or drain,sump, septic tank, eaves trough or downspout - ✔✔Sewer Back-Up Endorsement
Adds accidental glass breakage coverage - this indorsment is used to reduce the
deductible - ✔✔Residence Glass Endorsement Pays additional costs to demo/repair after
a loss - ✔✔Increased Cost Demolition or Construction High Valued Property ($10,000) -
✔✔Personal Articles Endorsement 1) Increase insurance limits 2) Broadens Coverages 3)
Reduce or eliminate deductibles under those policies 4)Coverage for excluded property or
perils - ✔✔Endorsement Advantages Insurance for objects regarded as fine arts. Ex;
Paintings, pictures, valuable rugs - ✔✔Fine Arts Endorsement 1) Sporting Equipment 2)
Animals, Birds or Fish 3) Outdoor Radio & TV Antennae 4) Wear& Tear or deterioration 5)
Settling, Expansion, Contraction, Moving, Bulging 6) Industrial Smoke Damage 7)
Vandalism 8) Snow slide, Earthquake, Landslide 9) Rust or Corrosion - ✔✔Loss or Damage
NOT Covered Under Comprehensive Form Taking another person's possessions without
consent - ✔✔Theft Occupants have moved out with no intention of returning - ✔✔Vacant
Wrongful act done without legal justification or excuse - ✔✔Malicious Act Intentionally
damaging or destroying another person's property - ✔✔Vandalism 1) Loss or damage to
dwelling / personal property by smoke from a fireplace 2) Collapse of roof from snow load -
✔✔Losses covered under the Comprehensive Form that are NOT covered under the Basic
Form All Risk - ✔✔Comprehensive Form - All property owned by the insured is covered on
_________ basis Sudden & accidental damage from artificially generated currents -
✔✔Basic Form - Peril 13 - Electricity 1) Buildings used in business/farming purposes 2)
Property in fairgrounds 3) Property Illegally acquired 4) Property that has been vacant for 30
days 5) Resulting in intentional act by the insured 6) Personal Property involving application
of heat 7) Discharge of fuel Oil - ✔✔Basic Form Exclusions Taking property without owners
consent - ✔✔Basic Form - Peril 12 - Theft/Damage Caused by Attempted Theft 1) Property
left at another dwelling 2) Renters 3) Dwelling under construction (Materials & Supplies) 4)
Animals, Birds & Fish 5) Resulting in change in ownership - ✔✔Basic Form - Peril 12 -
Theft/Damage Caused by Attempted Theft - Exclusions Insures loss to property while being
transported: 1) Personal Property which has been temporarily removed from the premises
2) Building fixtures and fittings temporarily removed for repair - ✔✔Basic Form - Peril 11 -
Transportation 1) Property in vacation or home trailer owned by insured 2) Watercraft,
furnishings, equipment or motors - ✔✔Basic Form - Peril 11 - Transportation - Exclusions
Accidental Breakage from shifting of the ground - ✔✔Basic Form - Peril 10 - Glass Breakage
Damage to the interior of the dwelling and personal property contained therein is also
, covered when proof that the peril created the damage - loss attributed to waves or floods is
not insured, even if cause by wind. - ✔✔Basic Form - Peril 9 - Windstorm or Hail 1) Sudden
& accidental escape of water from a water main 2) Water or Steam from plumbing, heating,
sprinkler or AC which is located inside the insured's dwelling 3) From a domestic water
container outside your dwelling 4) Water that enters through an opening which has been
created suddenly & accidentally by an insured peril other than water damage - ✔✔Basic
Form - Peril 8 - Water Damage Any damage from tidal waves,flood, sewage backup and
freezing - ✔✔Basic Form - Peril 8 - Water Damage - Exclusions Policy will cover payment fir
property lost or damaged by this peril - ✔✔Basic Form - Peril 7 - Vandalism or Malicious
Acts 1) Occurring while the building is in the course of construction or vacant 2) Caused by
an insured under the policy 3) Caused by theft or attempted theft - ✔✔Basic Form - Peril 7 -
Vandalism or Malicious Acts - Exclusion Coverage is covered under the policy when a riot
happens - ✔✔Basic Form - Peril 6 - Riot If a dwelling is impacted by either of these there is
coverage for the damages - ✔✔Basic Form - Peril 5 - Impact by Aircraft or Land Vehicle 1)
When Damage is caused by an insured or an employee 2) Animals - ✔✔Basic Form - Peril 5
- Impact by Aircraft or Land Vehicle - Exclusions A falling object which strikes the exterior
of a building - ✔✔Basic Form - Peril 4 - Falling Object Smoke due to a heating or cooking
unit - ✔✔Basic Form - Peril 3 - Smoke Smoke damage originating from a fireplace is not
insured under this peril - ✔✔Basic Form - Peril 3 - Smoke - Exclusions Hot water heaters
and domestic boilers used for heating purposes - ✔✔Basic Form - Peril 2 - Explosion
Damage to electrical devices or appliance is covered under this peril - ✔✔Basic Form -
Peril 1 - Fire or Lightning A coverage designed to reimburse the insured for an increase in
living expenses necessitated by loss to the dwelling. This Indirect Loss must be the result
of Direct Loss by a covered Peril. - ✔✔Additional Living Expenses Contents of the insured's
dwelling and other personal property owned, worn or used by the insured while on the
premises, which is usual to the ownership or maintenance of a dwelling - ✔✔Personal
Property Amount you must pay before you begin receiving any benefits from your insurance
company - ✔✔Deductible The cost to repair or replace property using new materials of like
kind and quality with no deduction for depreciation - ✔✔Replacement Cost Additional
Living Expense Only is paid by this - ✔✔Basis of Claim Payment Pays 1) Apply to certain
classes of property 2) Limit is total of each category - ✔✔Special Limits Insureds must take
all steps reasonable to recover lost or damaged property after insured losses - ✔✔Sue and
Labor Insurers Advisory Organization - It provides Insurers with risk inspection and advisory
rating services - ✔✔What does IAO stand for and what is its purpose? Insured must notify
the insurer in writing as soon as possible in the event of any Loss or occurrence. The
