CAIB 2 Chapter 1 Study Guide Questions with
Answers
The three amounts to be considered when calculating the amount of payment as outlined in
the Indemnity Agreement are: - ✔✔1) the value of the lost or damaged property (ACV)
2) the interest of the insured in the property (ex. financial interest, home, mortgage)
3) the amount of insurance specified on the "Declarations Page" for the loss or damaged
property (least amount|)
Identify the four categories that buildings may fall into: - ✔✔Residential (ex. home)
Non-mercantile (ex. hospitals, nursing homes)
Mercantile (ex. drycleaners, bakeries)
Manufacturing/Industrial (ex. autobody shops)
Three classes of property commercially insured are: - ✔✔building, stock, equipment
Identify the two bases that coverage can be provided on: - ✔✔Scheduled
All property
Property of every description
Identify and give an example of each of the five types of property contained in the definition of
Building found in the IBC Commercial Property Broad Form - ✔✔1) Growing plants, trees,
shrubs INSIDE the building used for decorative purposes only when insured is the owner of the
building (ex. cactus)
2) Materials and equipment supplies ON the premises for maintenance (ex. lumbar, glass)
, 3) Additions and extensions IN CONTACT with the building (enclosed walk-way between
buildings)
4) Permanent fittings and fixtures ATTACHED and FORMING part of the building. (ex. light
fixtures, carpeting)
5) Fixed structures PERTAINING to building and located on the premises (ex. fence)
[GMAPF]
Identify the three conditions pertaining to the coverage for growing plants, trees, etc. - ✔✔-
such property was INSIDE the building
- was being used for decorative purposes
- insured was the owner of the building
Identify and give an example of the three types of property contained in the definition of Stock
found in the IBC Commercial Property Broad Form: - ✔✔1) packing, wrapping and advertising
materials (ex. bubble plastic, Styrofoam)
2) merchandise of every description USUAL to insureds business (ex. goods for sale for
business)
3) similar property belonging to others which the insured is under obligation to keep insured or
for which he is legally liable for (appliance if appliance store.
[PMS]
Answers
The three amounts to be considered when calculating the amount of payment as outlined in
the Indemnity Agreement are: - ✔✔1) the value of the lost or damaged property (ACV)
2) the interest of the insured in the property (ex. financial interest, home, mortgage)
3) the amount of insurance specified on the "Declarations Page" for the loss or damaged
property (least amount|)
Identify the four categories that buildings may fall into: - ✔✔Residential (ex. home)
Non-mercantile (ex. hospitals, nursing homes)
Mercantile (ex. drycleaners, bakeries)
Manufacturing/Industrial (ex. autobody shops)
Three classes of property commercially insured are: - ✔✔building, stock, equipment
Identify the two bases that coverage can be provided on: - ✔✔Scheduled
All property
Property of every description
Identify and give an example of each of the five types of property contained in the definition of
Building found in the IBC Commercial Property Broad Form - ✔✔1) Growing plants, trees,
shrubs INSIDE the building used for decorative purposes only when insured is the owner of the
building (ex. cactus)
2) Materials and equipment supplies ON the premises for maintenance (ex. lumbar, glass)
, 3) Additions and extensions IN CONTACT with the building (enclosed walk-way between
buildings)
4) Permanent fittings and fixtures ATTACHED and FORMING part of the building. (ex. light
fixtures, carpeting)
5) Fixed structures PERTAINING to building and located on the premises (ex. fence)
[GMAPF]
Identify the three conditions pertaining to the coverage for growing plants, trees, etc. - ✔✔-
such property was INSIDE the building
- was being used for decorative purposes
- insured was the owner of the building
Identify and give an example of the three types of property contained in the definition of Stock
found in the IBC Commercial Property Broad Form: - ✔✔1) packing, wrapping and advertising
materials (ex. bubble plastic, Styrofoam)
2) merchandise of every description USUAL to insureds business (ex. goods for sale for
business)
3) similar property belonging to others which the insured is under obligation to keep insured or
for which he is legally liable for (appliance if appliance store.
[PMS]
