CAIB 1 CHAPTER 1 - SECTION 2
CHECKPOINTS EXAM GRADED A+
Provide s3 sreasons swhy sgovernments sare sinvolved sin sthe sregulation sof sthe
sinsurance sindustry s- scorrect sanswers s-1. sInsurance scompanies swill sbe
sfinancially scompetent sto sdischarge stheir sobligations s
2. sForms sof scontracts sare sdrafted sfairly s
3. sBusiness sis sbeing sconducted sto sthe sgeneral sbenefit sof sthe spublic.
Explain sthe srole sof sthe sProperty sand sCasualty sInsurance sCompensation
sCorporation s(PACICC). sIndicate sthe slevel sof sprotection sprovided sto sall
sinsureds sunder sthis scompulsory sindustry splan s- scorrect sanswers s-The srole sof
sPACICC sis sto sprotect sthe sconsumer sagainst sinsurer sinsolvency. sEach
sinsurance scompany sis sassessed san samount sbased supon sthe stotal sof stheir
sdirect swritten spremium. sThe smaximum samount savailable sfor sany sone sclaims
sis s$250,000. sA srefund sof sup sto s70% sof sunearned spremiums, ssubject sto sa
smaximum sof s$700 sper spolicy.
Identify sthe s3 scoverage's srequired sto sbe sprovided sunder sall spolicies sof sfire
sinsurance sissued sin sthe scommon slaw sprovinces. s- scorrect sanswers s-1. sFire
2.Lightning
, 3. sExplosion sof snatural scoal sor smanufactured sgas.
Losses swhich sarise sproximately sfrom san sinsured speril sare salso scovered sby sall
sproperty spolicies. sProvide stwo sexamples sof sproximate sdamage sinsured sunder
sthe speril sof sfire. s- scorrect sanswers s-1. sDamage scaused sby swater sand sother
sextinguishing sagents. s
2. sPhysical sdamage sto sbuildings scaused sby sfirefighters
3. sDamage sresulting sfrom sother sactions sto sprevent sthe sspread sof sfire.
s(Demolishing san sadjacent sbuilding)
Provide s2 sreasons swhy sexclusions sare sprovided son sinsurance spolicies. s-
scorrect sanswers s-1. sTo sremove scoverage sfor swhich smore sspecialized
scoverage sforms sare savailable. s
2. sTo sremove scoverage sfor slosses swhich sare sinsurable s(e.i. swar)
Would sa spolicy sof sfire sinsurance srespond sto spay: sFire sdamage sto sa sdwelling
swhich sarose swhen siron sused sto spress sinsured's spants sover-heated? sDamage
sto spants swhich swere sbeing sironed sat sthe stime? s- scorrect sanswers s-Dwelling:
sYes, sas sit sis sresultant sdamage. sPants: sNo, sthe sapplication sof sheat sdirectly
scaused sthe sdamage sand sit sis sspecifically sexcluded
Would sa spolicy sof sfire sinsurance srespond sto spay: sLightning sdamage sto swiring
sin sa smotor sof sdeep sfreeze? sResultant sfire sdamage sto sdeep sfreeze? s- scorrect
sanswers s-Lightning sdamage sto swiring sin sthe smotor sis snot scovered sby sthe
sbasic sFire sPolicy. sResultant sdamage sto sthe sdeep sfreeze sby sensuing sfire
swould sbe scovered sby sall sfire spolicies.
Would sa spolicy sof sfire sinsurance srespond sto spay:Damage sto selectrical swiring
sin sfridge smotor scaused sby sa spower ssurge? sResultant sfire sdamage sto sfridge?
s- scorrect sanswers s-Damage sto sthe sfridge sby sthe spower ssurge sis snot sinsured.
sHowever sresultant sfire sdamage swould sbe scovered.
Would sa spolicy sof sfire sinsurance srespond sto spay:Fire sdamage sto sinsured's
sdwelling scaused sduring sinvasion sof sforeign senemy? s- scorrect sanswers s-Fire
sdamage scaused sduring sinvasion sof sforeign senemy sis snot scovered sby sthe sFire
sPolicy
Misrepresentation: s- scorrect sanswers s-Can sarise sout sof smisstatement sand/or
sfraudulent somission sof sa smaterial sfact
Property sof sOthers s- scorrect sanswers s-Is snot sinsured sunless sthe sinterest sof
sthe sinsured sis sspecifically sstated sin sthe scontract
Change sof sInterest s- scorrect sanswers s-Policy scontinues sto sprotect s"new"
sinsureds swhen schange sof stitle sis sdue sto ssuccession, soperation sof slaw sor sby
sdeath sor san sauthorized sassignment sunder sthe sbankruptcy sact
Material sChange s- scorrect sanswers s-Any schange swhich sserves sto sincrease sthe
schange sof sloss sand sarises safter sthe spolicy shas sbeen sissued.
CHECKPOINTS EXAM GRADED A+
Provide s3 sreasons swhy sgovernments sare sinvolved sin sthe sregulation sof sthe
sinsurance sindustry s- scorrect sanswers s-1. sInsurance scompanies swill sbe
sfinancially scompetent sto sdischarge stheir sobligations s
2. sForms sof scontracts sare sdrafted sfairly s
3. sBusiness sis sbeing sconducted sto sthe sgeneral sbenefit sof sthe spublic.
Explain sthe srole sof sthe sProperty sand sCasualty sInsurance sCompensation
sCorporation s(PACICC). sIndicate sthe slevel sof sprotection sprovided sto sall
sinsureds sunder sthis scompulsory sindustry splan s- scorrect sanswers s-The srole sof
sPACICC sis sto sprotect sthe sconsumer sagainst sinsurer sinsolvency. sEach
sinsurance scompany sis sassessed san samount sbased supon sthe stotal sof stheir
sdirect swritten spremium. sThe smaximum samount savailable sfor sany sone sclaims
sis s$250,000. sA srefund sof sup sto s70% sof sunearned spremiums, ssubject sto sa
smaximum sof s$700 sper spolicy.
Identify sthe s3 scoverage's srequired sto sbe sprovided sunder sall spolicies sof sfire
sinsurance sissued sin sthe scommon slaw sprovinces. s- scorrect sanswers s-1. sFire
2.Lightning
, 3. sExplosion sof snatural scoal sor smanufactured sgas.
Losses swhich sarise sproximately sfrom san sinsured speril sare salso scovered sby sall
sproperty spolicies. sProvide stwo sexamples sof sproximate sdamage sinsured sunder
sthe speril sof sfire. s- scorrect sanswers s-1. sDamage scaused sby swater sand sother
sextinguishing sagents. s
2. sPhysical sdamage sto sbuildings scaused sby sfirefighters
3. sDamage sresulting sfrom sother sactions sto sprevent sthe sspread sof sfire.
s(Demolishing san sadjacent sbuilding)
Provide s2 sreasons swhy sexclusions sare sprovided son sinsurance spolicies. s-
scorrect sanswers s-1. sTo sremove scoverage sfor swhich smore sspecialized
scoverage sforms sare savailable. s
2. sTo sremove scoverage sfor slosses swhich sare sinsurable s(e.i. swar)
Would sa spolicy sof sfire sinsurance srespond sto spay: sFire sdamage sto sa sdwelling
swhich sarose swhen siron sused sto spress sinsured's spants sover-heated? sDamage
sto spants swhich swere sbeing sironed sat sthe stime? s- scorrect sanswers s-Dwelling:
sYes, sas sit sis sresultant sdamage. sPants: sNo, sthe sapplication sof sheat sdirectly
scaused sthe sdamage sand sit sis sspecifically sexcluded
Would sa spolicy sof sfire sinsurance srespond sto spay: sLightning sdamage sto swiring
sin sa smotor sof sdeep sfreeze? sResultant sfire sdamage sto sdeep sfreeze? s- scorrect
sanswers s-Lightning sdamage sto swiring sin sthe smotor sis snot scovered sby sthe
sbasic sFire sPolicy. sResultant sdamage sto sthe sdeep sfreeze sby sensuing sfire
swould sbe scovered sby sall sfire spolicies.
Would sa spolicy sof sfire sinsurance srespond sto spay:Damage sto selectrical swiring
sin sfridge smotor scaused sby sa spower ssurge? sResultant sfire sdamage sto sfridge?
s- scorrect sanswers s-Damage sto sthe sfridge sby sthe spower ssurge sis snot sinsured.
sHowever sresultant sfire sdamage swould sbe scovered.
Would sa spolicy sof sfire sinsurance srespond sto spay:Fire sdamage sto sinsured's
sdwelling scaused sduring sinvasion sof sforeign senemy? s- scorrect sanswers s-Fire
sdamage scaused sduring sinvasion sof sforeign senemy sis snot scovered sby sthe sFire
sPolicy
Misrepresentation: s- scorrect sanswers s-Can sarise sout sof smisstatement sand/or
sfraudulent somission sof sa smaterial sfact
Property sof sOthers s- scorrect sanswers s-Is snot sinsured sunless sthe sinterest sof
sthe sinsured sis sspecifically sstated sin sthe scontract
Change sof sInterest s- scorrect sanswers s-Policy scontinues sto sprotect s"new"
sinsureds swhen schange sof stitle sis sdue sto ssuccession, soperation sof slaw sor sby
sdeath sor san sauthorized sassignment sunder sthe sbankruptcy sact
Material sChange s- scorrect sanswers s-Any schange swhich sserves sto sincrease sthe
schange sof sloss sand sarises safter sthe spolicy shas sbeen sissued.
