CAIB 3 Final Exam Questions With Correct Answers
Define the following insurance terms.
Bill of Lading
Documents issued by carriers responsible for transporting or forwarding goods
Constructive Total Loss (MARINE INSURANCE)
Occurs when the cost of salvaging the cargo is too high relative to the value saved
Working Capital
Amounts of funds available to pay continuing business operating expenses until
payment is received for work being undertaken by the contractor
Penalty (SURETY BOND)
Amount of credit given to the principal by the surety or the amount which the
surety is prepared to pay in the event the principal should default
Going Concern Value
Difference in the value of property which must be sold after a loss and its value
had the business continued
Question #2
, All of the following statements in regards to the coverages provided under
Coverage A. Bodily Injury and Property Damage Liability (Commercial General
Liability Policy) are true, except one. Pick the Exception.
a) Coverage provided only for such sums as the insured is legally obligated to pay
as damages.
b) Insurer has both a right and duty to defend the insured.
c) Coverage is provided only for losses which occur during the policy period.
d) Only those losses which occur in Canada and the United States of
America(including its territories and possessions) are insured.
d) Only those losses which occur in Canada and the United States of
America(including its territories and possessions) are insured.
Question #3
Peter's Perogie and Pizza Den, Inc. does almost one-half of its business from
take-out orders. High school and university students handle most of the
deliveries. They supply their own vehicles and are paid $2.25 per delivery. Two
months ago, one of the students was involved in a serious accident when he
tried to run a red light at a busy intersection. The three persons injured in the
accident have filed an action against both the student and Peter's Perogie and
Pizza Den, Inc. The following automobile coverage will respond to protect the
business in the event it is found liable for damages:
a) S.P.F. No. 1 Owner's Form
b) S.P.F. No. 2 Drivers Policy
c) S.P.F. No. 6 Standard Non-Owned Automobile Policy
d) S.E.F. No.31 Non-Owned Equipment Endorsement
c) S.P.F. No. 6 Standard Non-Owned Automobile Policy
Define the following insurance terms.
Bill of Lading
Documents issued by carriers responsible for transporting or forwarding goods
Constructive Total Loss (MARINE INSURANCE)
Occurs when the cost of salvaging the cargo is too high relative to the value saved
Working Capital
Amounts of funds available to pay continuing business operating expenses until
payment is received for work being undertaken by the contractor
Penalty (SURETY BOND)
Amount of credit given to the principal by the surety or the amount which the
surety is prepared to pay in the event the principal should default
Going Concern Value
Difference in the value of property which must be sold after a loss and its value
had the business continued
Question #2
, All of the following statements in regards to the coverages provided under
Coverage A. Bodily Injury and Property Damage Liability (Commercial General
Liability Policy) are true, except one. Pick the Exception.
a) Coverage provided only for such sums as the insured is legally obligated to pay
as damages.
b) Insurer has both a right and duty to defend the insured.
c) Coverage is provided only for losses which occur during the policy period.
d) Only those losses which occur in Canada and the United States of
America(including its territories and possessions) are insured.
d) Only those losses which occur in Canada and the United States of
America(including its territories and possessions) are insured.
Question #3
Peter's Perogie and Pizza Den, Inc. does almost one-half of its business from
take-out orders. High school and university students handle most of the
deliveries. They supply their own vehicles and are paid $2.25 per delivery. Two
months ago, one of the students was involved in a serious accident when he
tried to run a red light at a busy intersection. The three persons injured in the
accident have filed an action against both the student and Peter's Perogie and
Pizza Den, Inc. The following automobile coverage will respond to protect the
business in the event it is found liable for damages:
a) S.P.F. No. 1 Owner's Form
b) S.P.F. No. 2 Drivers Policy
c) S.P.F. No. 6 Standard Non-Owned Automobile Policy
d) S.E.F. No.31 Non-Owned Equipment Endorsement
c) S.P.F. No. 6 Standard Non-Owned Automobile Policy
