CAIB 2 Final Exam Practice Test with correct answers.

CAIB 2 Final Exam Practice Test with
correct answers
Define Loading - ANS-Additional rate charged over and above the fire rate.
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Define common carrier - ANS-Includes airline, railroads, trucking companies, and others
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that furnish transportation to any member of the public seeking their services.
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Define "Bailee for Hire" - ANS-One who has temporary custody of the personal property
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of another for a purpose other than sale and who is compensated as a condition of
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such custody.
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Define discovery period. - ANS-Time permitted by an insurer, commencing with the
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expiry date of the policy, in which a claim must be discovered by the insured if it is to be
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covered by the policy.
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Define contributing property - ANS-Manufacturer or supplier upon whom the insured
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depends for materials or goods.
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All of the following characteristics except one, are common to Boiler and Machinery
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policies. Pick the exception.
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A) insures objects against accidents.
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B) excludes coverage for mechanical or electrical breakdown.
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C) coverage is provided on a limit per accident basis.
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D) insurer retains the right to suspend coverage immediately on any object judged to be
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in a dangerous condition. - ANS-B) excludes coverage for mechanical or electrical
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breakdown.
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The builders risk broad form can be used to insure all of the following property items at
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the project site, except one. Pick the exception.
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A) all materials and supplies to enter into and form part of the completed project.
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B) growing trees, plants, shrubs, and flowers.
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C) temporary office used by the contractor.
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D) contractors tools and equipment. - ANS-D) contractors tools and equipment.
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A common carrier is not liable to the owners of goods being transported by it for the
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following loss: (pick the correct answer)
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A) spoilage of goods caused by the failure of refrigeration equipment attached to
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transporting conveyance.
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