CAIB 3 EXAM QUESTIONS WITH
COMPLETE SOLUTIONS
Outline the purpose of the OPCF 44 Endorsement and indicate how it
| | | | | | | | | | | |
affects the amount of insurance available to the insured. -
| | | | | | | | | |
ANSWER✔✔✔-To increase the TP limits available to victims to the same | | | | | | | | | |
|limits as purchased under their own Policy. Insured can avail the
| | | | | | | | | | |
difference between TP Limit of his own Policy & the TP limit of the at-
| | | | | | | | | | | | | |
fault 3rd Party.
| |
Outline the purpose of the OPCF 20 Endorsement - ANSWER✔✔✔-To
| | | | | | | | | |
recover Expenses incurred on -
| | | |
a) rental of substitute automobile
| | | |
b) Taxicabs or public means of transportation
| | | | | |
When your client has $1M in TPL and gets into an accident with a third
| | | | | | | | | | | | | | |
party who carrier $200,000 in TPL. How much will this allow her policy
| | | | | | | | | | | | |
to pay out for a max loss of $1M - ANSWER✔✔✔-$800,000
| | | | | | | | | |
Most rental agencies attempt to sell Sally the full range of automobile
| | | | | | | | | | | |
insurance coverages. Identify the two (2) coverages provided by all
| | | | | | | | | |
insurance policies which extend rental automobiles. - ANSWER✔✔✔-
| | | | | | |
Third Party Liability and Accident Benefits
| | | | |
,When automobiles owned by the insured's employee are used in the
| | | | | | | | | | |
business, the employer has a non-owned automobile liability exposure.
| | | | | | | | |
Indicate the automobile insurance policy which can be purchased by
| | | | | | | | | |
employers to insure this exposure. And name another method of
| | | | | | | | | |
providing this coverage to business owners. - ANSWER✔✔✔-SPF6 Non-
| | | | | | | |
Owned Auto Liability and a CGL policy is an alternative.
| | | | | | | | |
Covered or Not Covered Under the OAP1: Automobile is being used to
| | | | | | | | | | | |
transport tourists on local tours - ANSWER✔✔✔-Not Covered: Sight
| | | | | | | | |
seeing conveyance is excluded.
| | |
Covered or Not Covered Under the OAP1: Automobile is being used
| | | | | | | | | | |
transport prospective buyers to real estate development located 30
| | | | | | | | |
kms. From the insured's office. - ANSWER✔✔✔-Covered: Carriage of
| | | | | | | | |
clients or prospective clients is ok.
| | | | |
Covered or Not Covered Under the OAP1: Automobile is used car pool in
| | | | | | | | | | | |
which all persons involved take regular turns providing
| | | | | | | |
transportation. - ANSWER✔✔✔-Covered: Car pool permitted. | | | | |
Covered or Not Covered Under the OAP1: Automobile is used
| | | | | | | | | |
occasionally to drive members of daughter's high school hockey team to
| | | | | | | | | |
games or tournaments. The insured receives $2.5/Km as a
| | | | | | | | | |
, transportation allowance from the school. - ANSWER✔✔✔-Covered: | | | | | | |
Occasional & infrequent use permitted | | | |
Each time Iona rents a car, the rental agency attempts to sell her
| | | | | | | | | | | | |
insurance to cover the period of the rental. Iona has asked you whether
| | | | | | | | | | | | |
the policy on her own automobile would respond to
| | | | | | | |
pay for any claims arising out of the use of a rented automobile. Identify
| | | | | | | | | | | | |
2 coverages provided under Iona's own policy which automatically
| | | | | | | | | |
extend to rented automobiles and which, therefore, do not need to be
| | | | | | | | | | | |
purchased from the rental agency. - ANSWER✔✔✔-Third Party Liability
| | | | | | | | |
and Accident Benefits
| |
When automobiles owned by the insured's employees are used in the
| | | | | | | | | | |
business, the employer has a non-owned automobile liability exposure.
| | | | | | | | |
While the policy which can be purchased by employers to insure this
| | | | | | | | | | | |
exposure can be provided on a standalone basis, it is not normally done
| | | | | | | | | | | | |
in this way. Explain the usual manner in which this coverage is provided
| | | | | | | | | | | | |
to business owners. - ANSWER✔✔✔-CGL Policy or CGL Policy
| | | | | | | | |
Endorsement
Provide 2 examples of automobiles that fall within the definition of
| | | | | | | | | |
"Non-Owned Automobiles" under the Policy. - ANSWER✔✔✔-Vehicles
| | | | | | | |
owned by employees or hired vehicles.
| | | | |
COMPLETE SOLUTIONS
Outline the purpose of the OPCF 44 Endorsement and indicate how it
| | | | | | | | | | | |
affects the amount of insurance available to the insured. -
| | | | | | | | | |
ANSWER✔✔✔-To increase the TP limits available to victims to the same | | | | | | | | | |
|limits as purchased under their own Policy. Insured can avail the
| | | | | | | | | | |
difference between TP Limit of his own Policy & the TP limit of the at-
| | | | | | | | | | | | | |
fault 3rd Party.
| |
Outline the purpose of the OPCF 20 Endorsement - ANSWER✔✔✔-To
| | | | | | | | | |
recover Expenses incurred on -
| | | |
a) rental of substitute automobile
| | | |
b) Taxicabs or public means of transportation
| | | | | |
When your client has $1M in TPL and gets into an accident with a third
| | | | | | | | | | | | | | |
party who carrier $200,000 in TPL. How much will this allow her policy
| | | | | | | | | | | | |
to pay out for a max loss of $1M - ANSWER✔✔✔-$800,000
| | | | | | | | | |
Most rental agencies attempt to sell Sally the full range of automobile
| | | | | | | | | | | |
insurance coverages. Identify the two (2) coverages provided by all
| | | | | | | | | |
insurance policies which extend rental automobiles. - ANSWER✔✔✔-
| | | | | | |
Third Party Liability and Accident Benefits
| | | | |
,When automobiles owned by the insured's employee are used in the
| | | | | | | | | | |
business, the employer has a non-owned automobile liability exposure.
| | | | | | | | |
Indicate the automobile insurance policy which can be purchased by
| | | | | | | | | |
employers to insure this exposure. And name another method of
| | | | | | | | | |
providing this coverage to business owners. - ANSWER✔✔✔-SPF6 Non-
| | | | | | | |
Owned Auto Liability and a CGL policy is an alternative.
| | | | | | | | |
Covered or Not Covered Under the OAP1: Automobile is being used to
| | | | | | | | | | | |
transport tourists on local tours - ANSWER✔✔✔-Not Covered: Sight
| | | | | | | | |
seeing conveyance is excluded.
| | |
Covered or Not Covered Under the OAP1: Automobile is being used
| | | | | | | | | | |
transport prospective buyers to real estate development located 30
| | | | | | | | |
kms. From the insured's office. - ANSWER✔✔✔-Covered: Carriage of
| | | | | | | | |
clients or prospective clients is ok.
| | | | |
Covered or Not Covered Under the OAP1: Automobile is used car pool in
| | | | | | | | | | | |
which all persons involved take regular turns providing
| | | | | | | |
transportation. - ANSWER✔✔✔-Covered: Car pool permitted. | | | | |
Covered or Not Covered Under the OAP1: Automobile is used
| | | | | | | | | |
occasionally to drive members of daughter's high school hockey team to
| | | | | | | | | |
games or tournaments. The insured receives $2.5/Km as a
| | | | | | | | | |
, transportation allowance from the school. - ANSWER✔✔✔-Covered: | | | | | | |
Occasional & infrequent use permitted | | | |
Each time Iona rents a car, the rental agency attempts to sell her
| | | | | | | | | | | | |
insurance to cover the period of the rental. Iona has asked you whether
| | | | | | | | | | | | |
the policy on her own automobile would respond to
| | | | | | | |
pay for any claims arising out of the use of a rented automobile. Identify
| | | | | | | | | | | | |
2 coverages provided under Iona's own policy which automatically
| | | | | | | | | |
extend to rented automobiles and which, therefore, do not need to be
| | | | | | | | | | | |
purchased from the rental agency. - ANSWER✔✔✔-Third Party Liability
| | | | | | | | |
and Accident Benefits
| |
When automobiles owned by the insured's employees are used in the
| | | | | | | | | | |
business, the employer has a non-owned automobile liability exposure.
| | | | | | | | |
While the policy which can be purchased by employers to insure this
| | | | | | | | | | | |
exposure can be provided on a standalone basis, it is not normally done
| | | | | | | | | | | | |
in this way. Explain the usual manner in which this coverage is provided
| | | | | | | | | | | | |
to business owners. - ANSWER✔✔✔-CGL Policy or CGL Policy
| | | | | | | | |
Endorsement
Provide 2 examples of automobiles that fall within the definition of
| | | | | | | | | |
"Non-Owned Automobiles" under the Policy. - ANSWER✔✔✔-Vehicles
| | | | | | | |
owned by employees or hired vehicles.
| | | | |
