CAIB 2 - Chapter 6 Exam Questions and
Answers
3 Considerations that make some property items "Target Items" and provide an
explanation for each - ANS-1) Convertibility; the ease at which property can be sold and
converted to cash 2) Value; higher valued articles are more attractive to thieves 3)
Portability; the ease at which property can be transported
4 methods used by thieves which may cause loss to insured property & provide an
example - ANS-1) Forceable entry into building; entry by breaking a window 2) Unforced
entry into building; thief had a key 3) Forced opening of a building; forcing door open 4)
Vandalism & Malicious Acts; resultant damage caused during break in
What is a "Protected Enclosure" - ANS-Locked safes, chests & vaults on clients'
premises
3 methods to gain access to protected enclosures and provide an example of each -
ANS-1) Mechanical; Drills & Pry Bars 2) Thermal; cutting torches 3) Explosion;
dynamite
What is the purpose of perimeter protection? - ANS-to secure access to premises when
business is closed
What is partial protection? - ANS-this refers to perimiter protection limited to protection
of openings only, such as doors and windows
2 weaknesses of partial protection systems - ANS-1) forced entry through ceilings and
walls will not be detected 2) thieves that stay behind after closing will not be detected
until they leave
What is the purpose of Area Protection devices? - ANS-these devices protect the
interior of the buildings when businesses are closed or open
Describe how interior trapping devices work and provide two examples - ANS-these
devices guard the interior of buildings and have an element of surprise to the intruder
1) Single beam photo-electric device
2) Magnetic contact switches on interior doors
Explain how heat detectors work and provide 2 advantages - ANS-These are passive
devices which do not transmit signals, they sense the body heat of the thief as they
enter the area being protected
, 1) low cost 2) fewer false alarms
What are 3 advantages of cameras & CCTV
(closed circuit television) - ANS-1) thieves are less likely to commit crimes when being
videotaped 2) helps authorities identify and convict thieves 3) deters shoplifting
What is the point of Point Protection? - ANS-this provides security directly to single
items of high interest to thieves
3 types of property that need Point Protection - ANS-1) Vaults 2) Safes 3) Chests
What requirement is placed on the insured regarding record keeping when claiming on
Crime policies - ANS-clients are required to prove amount of loss with records from their
business, when records cannot be produced, no coverage is provided
Define "Employee Dishonesty" - ANS-Losses resulting directly or from one or more
fraudulent or dishonest acts committed by an employee acting alone or in a collusion
with others
Explain the difference between Form A - Commercial Blanket Bond & Form B - Blanket
Position Bond for:
Employees Covered - ANS-Form A - All employees are covered for the same amount of
coverage
Form B - Coverage is purchased on individual employees and amount can be different
between employees
Explain the difference between Form A - Commercial Blanket Bond & Form B - Blanket
Position Bond for:
Limits of Insurance - ANS-Form A - limit purchased apply per occurrence of loss
Form B - Limit purchased apply to each employee involved in loss
Explain the difference between Form A - Commercial Blanket Bond & Form B - Blanket
Position Bond for:
Discovery Period - ANS-Form A - one year from expiry
How are alarm signals transmitted to alarm companies? - ANS-using leased telephone
lines
What type of alarm service offers the best form of supervisory service? - ANS-Central
Station Service
5 functions served by Central Stations - ANS-1) monitors all closing and openings of
business 2) turns on alarm automatically at closing 3) confirms after hours users are
Answers
3 Considerations that make some property items "Target Items" and provide an
explanation for each - ANS-1) Convertibility; the ease at which property can be sold and
converted to cash 2) Value; higher valued articles are more attractive to thieves 3)
Portability; the ease at which property can be transported
4 methods used by thieves which may cause loss to insured property & provide an
example - ANS-1) Forceable entry into building; entry by breaking a window 2) Unforced
entry into building; thief had a key 3) Forced opening of a building; forcing door open 4)
Vandalism & Malicious Acts; resultant damage caused during break in
What is a "Protected Enclosure" - ANS-Locked safes, chests & vaults on clients'
premises
3 methods to gain access to protected enclosures and provide an example of each -
ANS-1) Mechanical; Drills & Pry Bars 2) Thermal; cutting torches 3) Explosion;
dynamite
What is the purpose of perimeter protection? - ANS-to secure access to premises when
business is closed
What is partial protection? - ANS-this refers to perimiter protection limited to protection
of openings only, such as doors and windows
2 weaknesses of partial protection systems - ANS-1) forced entry through ceilings and
walls will not be detected 2) thieves that stay behind after closing will not be detected
until they leave
What is the purpose of Area Protection devices? - ANS-these devices protect the
interior of the buildings when businesses are closed or open
Describe how interior trapping devices work and provide two examples - ANS-these
devices guard the interior of buildings and have an element of surprise to the intruder
1) Single beam photo-electric device
2) Magnetic contact switches on interior doors
Explain how heat detectors work and provide 2 advantages - ANS-These are passive
devices which do not transmit signals, they sense the body heat of the thief as they
enter the area being protected
, 1) low cost 2) fewer false alarms
What are 3 advantages of cameras & CCTV
(closed circuit television) - ANS-1) thieves are less likely to commit crimes when being
videotaped 2) helps authorities identify and convict thieves 3) deters shoplifting
What is the point of Point Protection? - ANS-this provides security directly to single
items of high interest to thieves
3 types of property that need Point Protection - ANS-1) Vaults 2) Safes 3) Chests
What requirement is placed on the insured regarding record keeping when claiming on
Crime policies - ANS-clients are required to prove amount of loss with records from their
business, when records cannot be produced, no coverage is provided
Define "Employee Dishonesty" - ANS-Losses resulting directly or from one or more
fraudulent or dishonest acts committed by an employee acting alone or in a collusion
with others
Explain the difference between Form A - Commercial Blanket Bond & Form B - Blanket
Position Bond for:
Employees Covered - ANS-Form A - All employees are covered for the same amount of
coverage
Form B - Coverage is purchased on individual employees and amount can be different
between employees
Explain the difference between Form A - Commercial Blanket Bond & Form B - Blanket
Position Bond for:
Limits of Insurance - ANS-Form A - limit purchased apply per occurrence of loss
Form B - Limit purchased apply to each employee involved in loss
Explain the difference between Form A - Commercial Blanket Bond & Form B - Blanket
Position Bond for:
Discovery Period - ANS-Form A - one year from expiry
How are alarm signals transmitted to alarm companies? - ANS-using leased telephone
lines
What type of alarm service offers the best form of supervisory service? - ANS-Central
Station Service
5 functions served by Central Stations - ANS-1) monitors all closing and openings of
business 2) turns on alarm automatically at closing 3) confirms after hours users are
