CAIB 2 ACTUAL 2026 STUDY GUIDE QUESTIONS AND
ANSWERS GUARANTEE A+
✔✔Mechanical Breakdown - ✔✔A failure in the working mechanism of the machinery . .
...a
functional defect in the moving parts of the equipment which causes the latter to cease
function or to function improperly
✔✔Electrical Breakdown - ✔✔Failure in the electrical mechanism of the machinery,
appliance or
device
✔✔Trade Losses - ✔✔Types of losses which might be expected as a part of the every
day operation
of a business
✔✔Wear and Tear - ✔✔Deterioration or depreciation in value by ordinary and
reasonable use of the
subject matter
✔✔Gradual Deterioration - ✔✔Deterioration of an object which arises naturally over
time
✔✔Latent Defect - ✔✔Hidden or concealed defect. One which could not be discovered
by
reasonable and customary inspection. A defect not apparent on the face of the goods
✔✔Inherent Vice - ✔✔Something within a commodity, or other kind of property, that
cause its
demise over time
✔✔Mysterious Disappearance - ✔✔Disappearance under circumstance which cannot
be explained
✔✔Endorsement - ✔✔Changes the terms and conditions of the policy
✔✔Rider - ✔✔Adds additional coverages to those already in place
✔✔Media - ✔✔Materials such as diskettes, tapes, punch cards and compact disks upon
which data
is stored
✔✔Data - ✔✔Information stored on media
, ✔✔Temporary Location - ✔✔Location not specified on the policy which is not owned,
rented or
controlled in whole or in part by the insured
✔✔Newly Acquired Location - ✔✔Location acquired by the insured for a period of 30
days of
acquisition
✔✔Replacement Cost - ✔✔Cost of repairing or replacing the property of the same site
with new
property of like kind and quality and for like occupancy without deduction for
depreciation
✔✔Bailee for hire - ✔✔One who has temporary custody of the personal property of
another for a
purpose other than sale and who is compensated as a condition of such custody
✔✔Common Carrier - ✔✔Includes airlines railroads, trucking companies and others that
furnish
transportation to any member of the public seeking their services
✔✔Standing (ordinary) Bill of Lading - ✔✔Bill of lading used to reflect the amount for
which the
common carrier will be held legally liable under the tariff
✔✔Valued Bill of Lading - ✔✔Serves to increase carrier's liability - normally requested
by the owner
of goods when their value exceeds the value stated in the standard bill of larding
✔✔Released Bill of Lading - ✔✔Bill of Lading used to release a carrier from any liability
for the
goods being transported
✔✔Contract Carrier - ✔✔One that carries, for pay, the goods of certain customers only
as contrasted
to a common carrier that carries the good of public in general
✔✔Private Carrier - ✔✔one who hauls their own goods or good entrusted to them as a
bailee or
lessees and included shippers who owns or lease their vehicles and carry their own
goods
✔✔Catastrophe Limit - ✔✔Maximum amount an insurer will pay in only one disaster or
occurrence
ANSWERS GUARANTEE A+
✔✔Mechanical Breakdown - ✔✔A failure in the working mechanism of the machinery . .
...a
functional defect in the moving parts of the equipment which causes the latter to cease
function or to function improperly
✔✔Electrical Breakdown - ✔✔Failure in the electrical mechanism of the machinery,
appliance or
device
✔✔Trade Losses - ✔✔Types of losses which might be expected as a part of the every
day operation
of a business
✔✔Wear and Tear - ✔✔Deterioration or depreciation in value by ordinary and
reasonable use of the
subject matter
✔✔Gradual Deterioration - ✔✔Deterioration of an object which arises naturally over
time
✔✔Latent Defect - ✔✔Hidden or concealed defect. One which could not be discovered
by
reasonable and customary inspection. A defect not apparent on the face of the goods
✔✔Inherent Vice - ✔✔Something within a commodity, or other kind of property, that
cause its
demise over time
✔✔Mysterious Disappearance - ✔✔Disappearance under circumstance which cannot
be explained
✔✔Endorsement - ✔✔Changes the terms and conditions of the policy
✔✔Rider - ✔✔Adds additional coverages to those already in place
✔✔Media - ✔✔Materials such as diskettes, tapes, punch cards and compact disks upon
which data
is stored
✔✔Data - ✔✔Information stored on media
, ✔✔Temporary Location - ✔✔Location not specified on the policy which is not owned,
rented or
controlled in whole or in part by the insured
✔✔Newly Acquired Location - ✔✔Location acquired by the insured for a period of 30
days of
acquisition
✔✔Replacement Cost - ✔✔Cost of repairing or replacing the property of the same site
with new
property of like kind and quality and for like occupancy without deduction for
depreciation
✔✔Bailee for hire - ✔✔One who has temporary custody of the personal property of
another for a
purpose other than sale and who is compensated as a condition of such custody
✔✔Common Carrier - ✔✔Includes airlines railroads, trucking companies and others that
furnish
transportation to any member of the public seeking their services
✔✔Standing (ordinary) Bill of Lading - ✔✔Bill of lading used to reflect the amount for
which the
common carrier will be held legally liable under the tariff
✔✔Valued Bill of Lading - ✔✔Serves to increase carrier's liability - normally requested
by the owner
of goods when their value exceeds the value stated in the standard bill of larding
✔✔Released Bill of Lading - ✔✔Bill of Lading used to release a carrier from any liability
for the
goods being transported
✔✔Contract Carrier - ✔✔One that carries, for pay, the goods of certain customers only
as contrasted
to a common carrier that carries the good of public in general
✔✔Private Carrier - ✔✔one who hauls their own goods or good entrusted to them as a
bailee or
lessees and included shippers who owns or lease their vehicles and carry their own
goods
✔✔Catastrophe Limit - ✔✔Maximum amount an insurer will pay in only one disaster or
occurrence
