CAIB 2 Chapter 2 Study Guide Questions with
Answers
What are the 3 types of Homeowners Forms? - ✔✔1. Homeowners Basic 2. Homeowners Broad
3. Homeowners Comprehensive
Who develops insurance forms? - ✔✔Insurance Bureau of Canada
What types of risks are now eligible for coverage? - ✔✔Dwellings containing more than one
family, Insureds who own more than one dwelling, Mobile homes on full basements, dwellings
in course of construction
What are the common characteristics of Homeowners Forms? - ✔✔1. Clear Language 2.
Common Format or Structure 3. Policy Definitions Uniform 4. Insure the Same Exposures to
Loss
What are the 2 sections covered by Homeowners Policies? - ✔✔Section 1- Property Coverages,
Section 2 - Liability Coverages
What does Section 1 cover? (A-D) - ✔✔A) Dwelling Building B) Detached Private Structures
C)Personal Property D) Additional Living Expenses
What does Section 2 cover? - ✔✔E) Personal Liability F) Voluntary Medical Payments G)
Voluntary Property Damage H) Voluntary Compensation for Residence Employees
Explain Coverage A - Dwelling Building - ✔✔Provides coverage for the dwelling and attached
structures such as an attached garage or sundeck. Also provides coverage for permanently
installed outdoor equipment (embedded in concrete) such as children's playgrounds or outdoor
swimming pools (above & below ground). Coverage is also provided for materials and supplies
located adjacent to the premises that are intended for use in the construction or repair of the
insured dwelling
, (True or False) There is no coverage for outdoor trees & shrubs when damaged by wind or hail -
✔✔True
Explain Coverage B - Detached Private Structures - ✔✔Provides coverage for any structure or
building that is separated from the dwelling by a clear space such as a tool shed or detached
garage. If the structure is connected to the dwelling by a fence or utility line they are
considered detached. Generally 10% of Coverage A
What are the 3 types of Coverage C - Personal Property - ✔✔1) On Premises Coverage 2) Off
Premises Coverage 3) Property of Students
Explain On Premises Coverage for Personal Property - ✔✔Includes the contents of the insureds
dwelling and other personal property worn, used or owned by the insured and which is usual to
the maintenance or ownership of the dwelling. Also includes uninsured personal property of
others while in a portion of the dwelling occupied by the insured except the property of
roomers or boarders.
Explain Off Premises Coverage for Personal Property - ✔✔Coverage is provided for personal
property when it is temporarily away from the insured's' premises anywhere in the world.
Explain Property of Students for Personal Property - ✔✔Coverage is provided for the property
of students living away from home while attending school or college
(True or False) Motorized Vehicles used to maintain the insured premises (snowblowers/lawn
mowers) are covered. - ✔✔True
(True or False) Coverage is provided for scooters or wheelchairs having more than 2 wheels and
are specifically designed for the carriage of a physically disabled person - ✔✔True
Answers
What are the 3 types of Homeowners Forms? - ✔✔1. Homeowners Basic 2. Homeowners Broad
3. Homeowners Comprehensive
Who develops insurance forms? - ✔✔Insurance Bureau of Canada
What types of risks are now eligible for coverage? - ✔✔Dwellings containing more than one
family, Insureds who own more than one dwelling, Mobile homes on full basements, dwellings
in course of construction
What are the common characteristics of Homeowners Forms? - ✔✔1. Clear Language 2.
Common Format or Structure 3. Policy Definitions Uniform 4. Insure the Same Exposures to
Loss
What are the 2 sections covered by Homeowners Policies? - ✔✔Section 1- Property Coverages,
Section 2 - Liability Coverages
What does Section 1 cover? (A-D) - ✔✔A) Dwelling Building B) Detached Private Structures
C)Personal Property D) Additional Living Expenses
What does Section 2 cover? - ✔✔E) Personal Liability F) Voluntary Medical Payments G)
Voluntary Property Damage H) Voluntary Compensation for Residence Employees
Explain Coverage A - Dwelling Building - ✔✔Provides coverage for the dwelling and attached
structures such as an attached garage or sundeck. Also provides coverage for permanently
installed outdoor equipment (embedded in concrete) such as children's playgrounds or outdoor
swimming pools (above & below ground). Coverage is also provided for materials and supplies
located adjacent to the premises that are intended for use in the construction or repair of the
insured dwelling
, (True or False) There is no coverage for outdoor trees & shrubs when damaged by wind or hail -
✔✔True
Explain Coverage B - Detached Private Structures - ✔✔Provides coverage for any structure or
building that is separated from the dwelling by a clear space such as a tool shed or detached
garage. If the structure is connected to the dwelling by a fence or utility line they are
considered detached. Generally 10% of Coverage A
What are the 3 types of Coverage C - Personal Property - ✔✔1) On Premises Coverage 2) Off
Premises Coverage 3) Property of Students
Explain On Premises Coverage for Personal Property - ✔✔Includes the contents of the insureds
dwelling and other personal property worn, used or owned by the insured and which is usual to
the maintenance or ownership of the dwelling. Also includes uninsured personal property of
others while in a portion of the dwelling occupied by the insured except the property of
roomers or boarders.
Explain Off Premises Coverage for Personal Property - ✔✔Coverage is provided for personal
property when it is temporarily away from the insured's' premises anywhere in the world.
Explain Property of Students for Personal Property - ✔✔Coverage is provided for the property
of students living away from home while attending school or college
(True or False) Motorized Vehicles used to maintain the insured premises (snowblowers/lawn
mowers) are covered. - ✔✔True
(True or False) Coverage is provided for scooters or wheelchairs having more than 2 wheels and
are specifically designed for the carriage of a physically disabled person - ✔✔True
