CAIB 2 Final Exam Questions AND Correct Answers
A common carrier is not liable to the owners of goods being
transported by it for the following loss: (pick the correct
answer)
A) spoilage of goods caused by the failure of refrigeration
equipment attached to transporting conveyance.
B) inherent vice in goods being transported.
C) damage to goods caused by an accident involving the
transporting conveyance.
D) a delay in shipment causing spoilage due to stock being
misdirected by the carrier at the point of shipment. - ✔✔B)
inherent vice in goods being transported.
All of the following characteristics except one, are common to
Boiler and Machinery policies. Pick the exception.
A) insures objects against accidents.
B) excludes coverage for mechanical or electrical breakdown.
C) coverage is provided on a limit per accident basis.
, D) insurer retains the right to suspend coverage immediately
on any object judged to be in a dangerous condition. - ✔✔B)
excludes coverage for mechanical or electrical breakdown.
All of the following statements are true when coverage is
provided due to the insureds business being interrupted by
order of civil authority, except one. Pick the exception.
A) insureds building must suffer physical damage.
B) coverage is limited to a maximum of two weeks.
C) insured is entitled to recover lost income even though there
has been no actual damage to property insured under policy.
D) order must have been given as a direct result of damage to
neighbouring premises by a peril insured against under the
insureds own policy. - ✔✔A) insureds building must suffer
physical damage.
An electronic data processing policy includes coverage for
software. What two specific items are insured within the
coverage provided for software? - ✔✔1. Data.
2. Media.
A common carrier is not liable to the owners of goods being
transported by it for the following loss: (pick the correct
answer)
A) spoilage of goods caused by the failure of refrigeration
equipment attached to transporting conveyance.
B) inherent vice in goods being transported.
C) damage to goods caused by an accident involving the
transporting conveyance.
D) a delay in shipment causing spoilage due to stock being
misdirected by the carrier at the point of shipment. - ✔✔B)
inherent vice in goods being transported.
All of the following characteristics except one, are common to
Boiler and Machinery policies. Pick the exception.
A) insures objects against accidents.
B) excludes coverage for mechanical or electrical breakdown.
C) coverage is provided on a limit per accident basis.
, D) insurer retains the right to suspend coverage immediately
on any object judged to be in a dangerous condition. - ✔✔B)
excludes coverage for mechanical or electrical breakdown.
All of the following statements are true when coverage is
provided due to the insureds business being interrupted by
order of civil authority, except one. Pick the exception.
A) insureds building must suffer physical damage.
B) coverage is limited to a maximum of two weeks.
C) insured is entitled to recover lost income even though there
has been no actual damage to property insured under policy.
D) order must have been given as a direct result of damage to
neighbouring premises by a peril insured against under the
insureds own policy. - ✔✔A) insureds building must suffer
physical damage.
An electronic data processing policy includes coverage for
software. What two specific items are insured within the
coverage provided for software? - ✔✔1. Data.
2. Media.
