CAIB Exam Practice 2023/2024 - Questions with Correct Answers (Graded A+)

CAIB Exam Practice 2023/2024 - Questions with Correct Answers (Graded A+). What is the basis of claim payment for loss or damage to the mobile home, detached private structures and personal property under a Mobile Homeowners Policy? - AnswerThe basis of claim is Actual Cash Value; payment for loss or damage to personal property is made on the same basis as under Homeowners Forms. Identify two (2) other coverages included under C - Personal Property, which are not found in a Homeowners policy - Answer- Improvements or betterments made by or acquired at the expense of the tenant; $500 for damage (excluding fire damage) to the portion of the building occupied by the tenant resulting from theft or attempted theft; Damage caused to the interior of the building by vandalism or malicious acts. Individuals who own one or more units in a multiple unit building have an insurable interest in the building structure, common elements and personal property. Identify and briefly explain three coverages that are unique to the Condominium Unit Owners Policy: - Answer- Unit Improvements and Betterments: insures the value of improvements and betterments by the insured, including any building, structure or swimming pool, and materials and supplies on the premises for use in such improvements or betterments. Loss Assessment: allows the Insured to claim the amount of an assessment paid due to a loss to collectively owned property if covered under the Insured's policy. Unit Additional Protection: covers the Insured's unit, excluding damage to improvements and betterments, when the Condominium Corporation has no insurance, or it is inadequate Insureds often find the limit of insurance for certain personal property items provided by homeowners and other habitational forms inadequate and opt to insure individual articles under a Personal Articles Endorsement. The broad coverage combined with the high value of the articles insured necessitates strict underwriting considerations. Explain three (3) underwriting requirements applicable to this coverage option. - Answer- 1. Each article must be separately described and a specific amount set for each. 2. Current valuation of individual jewellery items or furs is usually required when the value exceeds a certain amount. A bill of sale or recent appraisal is usually sufficient to meet this underwriting requirement.