CAIB 2 - CHAPTER 1 EXAM 2025
The three amounts to be considered when calculating the amount of payment as outlined in the
Indemnity Agreement are: - Precise Answer ✔✔1) the value of the lost or damaged property (ACV)
2) the interest of the insured in the property (ex. financial interest, home, mortgage)
3) the amount of insurance specified on the "Declarations Page" for the loss or damaged property (least
amount|)
Identify the four categories that buildings may fall into: - Precise Answer ✔✔Residential (ex. home)
Non-mercantile (ex. hospitals, nursing homes)
Mercantile (ex. drycleaners, bakeries)
Manufacturing/Industrial (ex. autobody shops)
Three classes of property commercially insured are: - Precise Answer ✔✔building, stock, equipment
Identify the two bases that coverage can be provided on: - Precise Answer ✔✔Scheduled
All property
Property of every description
Identify and give an example of each of the five types of property contained in the definition of Building
found in the IBC Commercial Property Broad Form - Precise Answer ✔✔1) Growing plants, trees, shrubs
INSIDE the building used for decorative purposes only when insured is the owner of the building (ex.
cactus)
2) Materials and equipment supplies ON the premises for maintenance (ex. lumbar, glass)
3) Additions and extensions IN CONTACT with the building (enclosed walk-way between buildings)
, 4) Permanent fittings and fixtures ATTACHED and FORMING part of the building. (ex. light fixtures,
carpeting)
5) Fixed structures PERTAINING to building and located on the premises (ex. fence)
[GMAPF]
Identify the three conditions pertaining to the coverage for growing plants, trees, etc. - Precise Answer
✔✔- such property was INSIDE the building
- was being used for decorative purposes
- insured was the owner of the building
Identify and give an example of the three types of property contained in the definition of Stock found in
the IBC Commercial Property Broad Form: - Precise Answer ✔✔1) packing, wrapping and advertising
materials (ex. bubble plastic, Styrofoam)
2) merchandise of every description USUAL to insureds business (ex. goods for sale for business)
3) similar property belonging to others which the insured is under obligation to keep insured or for which
he is legally liable for (appliance if appliance store.
[PMS]
Identify the three conditions that need to be present before 'similar property belonging to others' will be
insured under the definition of Stock: - Precise Answer ✔✔1) must be similar to that insured by the
policy
2) the insured must have had an obligation to keep the property insured
3) the insured must be legally liable for it.
The three amounts to be considered when calculating the amount of payment as outlined in the
Indemnity Agreement are: - Precise Answer ✔✔1) the value of the lost or damaged property (ACV)
2) the interest of the insured in the property (ex. financial interest, home, mortgage)
3) the amount of insurance specified on the "Declarations Page" for the loss or damaged property (least
amount|)
Identify the four categories that buildings may fall into: - Precise Answer ✔✔Residential (ex. home)
Non-mercantile (ex. hospitals, nursing homes)
Mercantile (ex. drycleaners, bakeries)
Manufacturing/Industrial (ex. autobody shops)
Three classes of property commercially insured are: - Precise Answer ✔✔building, stock, equipment
Identify the two bases that coverage can be provided on: - Precise Answer ✔✔Scheduled
All property
Property of every description
Identify and give an example of each of the five types of property contained in the definition of Building
found in the IBC Commercial Property Broad Form - Precise Answer ✔✔1) Growing plants, trees, shrubs
INSIDE the building used for decorative purposes only when insured is the owner of the building (ex.
cactus)
2) Materials and equipment supplies ON the premises for maintenance (ex. lumbar, glass)
3) Additions and extensions IN CONTACT with the building (enclosed walk-way between buildings)
, 4) Permanent fittings and fixtures ATTACHED and FORMING part of the building. (ex. light fixtures,
carpeting)
5) Fixed structures PERTAINING to building and located on the premises (ex. fence)
[GMAPF]
Identify the three conditions pertaining to the coverage for growing plants, trees, etc. - Precise Answer
✔✔- such property was INSIDE the building
- was being used for decorative purposes
- insured was the owner of the building
Identify and give an example of the three types of property contained in the definition of Stock found in
the IBC Commercial Property Broad Form: - Precise Answer ✔✔1) packing, wrapping and advertising
materials (ex. bubble plastic, Styrofoam)
2) merchandise of every description USUAL to insureds business (ex. goods for sale for business)
3) similar property belonging to others which the insured is under obligation to keep insured or for which
he is legally liable for (appliance if appliance store.
[PMS]
Identify the three conditions that need to be present before 'similar property belonging to others' will be
insured under the definition of Stock: - Precise Answer ✔✔1) must be similar to that insured by the
policy
2) the insured must have had an obligation to keep the property insured
3) the insured must be legally liable for it.
