CAIB 2 - CHAPTER 5 Exam with
Complete Solutions
- Drycleaners
- Garages
- Jewellers
- Furriers
- Trucking firms
- Couriers. - ANS-Examples of businesses that have a bailee's exposure.
One who has temporary custody of the personal property of another for a purpose other
than sale, and who is compensated as a condition of the custody. - ANS-"Bailee for
hire."
Ordinary care. - ANS-The level of care required of bailees by law.
The legal duty imposed on bailees that requires them to take the same care of goods of
others as would be taken by a prudent and diligent owner of such goods. -
ANS-"Ordinary care."
Stock. - ANS-The coverage that bailee's exposure is usually insured by under most
commercial property policies.
1) Legal liability policy;
2) A special Bailees Customers Policy that insures direct loss or or damage to
customers' property, regardless of fault. - ANS-Two other types of bailee's policies.
1) In transit;
2) During delay incidental to transit. - ANS-Two coverage areas normally provided by
Inland Transportation policies.
1) Whether the owner or carrier is responsible for loss to the property; and
2) To what extent. - ANS-The two factors to determine whether the owner or the carrier
should purchase insurance on a shipment.
Includes airlines, railroads, trucking companies and others that provide transportation to
any member of the public. - ANS-"Common carrier."
One that carries, for pay, the goods of certain customers only. - ANS-"Contract carrier."
Complete Solutions
- Drycleaners
- Garages
- Jewellers
- Furriers
- Trucking firms
- Couriers. - ANS-Examples of businesses that have a bailee's exposure.
One who has temporary custody of the personal property of another for a purpose other
than sale, and who is compensated as a condition of the custody. - ANS-"Bailee for
hire."
Ordinary care. - ANS-The level of care required of bailees by law.
The legal duty imposed on bailees that requires them to take the same care of goods of
others as would be taken by a prudent and diligent owner of such goods. -
ANS-"Ordinary care."
Stock. - ANS-The coverage that bailee's exposure is usually insured by under most
commercial property policies.
1) Legal liability policy;
2) A special Bailees Customers Policy that insures direct loss or or damage to
customers' property, regardless of fault. - ANS-Two other types of bailee's policies.
1) In transit;
2) During delay incidental to transit. - ANS-Two coverage areas normally provided by
Inland Transportation policies.
1) Whether the owner or carrier is responsible for loss to the property; and
2) To what extent. - ANS-The two factors to determine whether the owner or the carrier
should purchase insurance on a shipment.
Includes airlines, railroads, trucking companies and others that provide transportation to
any member of the public. - ANS-"Common carrier."
One that carries, for pay, the goods of certain customers only. - ANS-"Contract carrier."
