CAIB 2 Immersion Exam Questions &
Answers
Identify three methods that can be used to gain access to a Protected Enclosure?
Provide an example for each. - correct Answer-Mechanical: Drills
Thermal: Torches
Explosion: Dynamite
What is the purpose of Perimeter Protection? - correct Answer-To prevent access to the
premises when the business is closed
Define Partial Protection and provide two weaknesses to Partial Protection? - correct
Answer-When only openings to the building are protected, such as windows and doors.
Forced entry through walls or ceilings will go undetected and stay behind thieves will go
unnoticed until they leave.
Common Clause: Indemnity Agreement - correct Answer-Policy pays least of:
ACV at the time of loss,
Insured's interest,
Policy limits
Common Clause: Deductible - correct Answer-Per occurrence
One deductible per location
Common Clause: Co-Insurance - correct Answer-Applies separately to each item.
Waived if loss is below 2% of insurance limit or $5,000.
Encourages insurance to be purchased for at least a certain % of value.
Common Clause: Permission - correct Answer-Granted for:
Other insurance,
Alterations or additions,
To carry substances usual to insured business
Common Clause: Breach of Conditions - correct Answer-Breach must have impacted
loss to deny coverage.
Common Clause: Reinstatement - correct Answer-Losses do not reduce amount of
insurance.
Refunds not impacted by claim in policy period.
,Common Clause: Subrogation - correct Answer-After payment of loss, right of recovery
is transferred to insurer.
Common Clause: Property Protection Systems - correct Answer-Insured must advise of
any known defect or flaw in any:
Fire extinguishing system,
Fire detection system,
Intrusion detection system.
Common Clause: Premium Adjustment - correct Answer-Stock adequately covered of
actual inventory reported at end of term.
6 months to apply for premium adjustment at expiry.
Common Clause: Verification of Values - correct Answer-Insurer has the right to inspect
books:
Any reasonable time during the policy period &
Within one year of cancellation
Common Clause: Basis of Valuation - correct Answer-Policy pays ACV at the time of
loss, not exceeding cost repair.
Exceptions:
Sold stock - selling price less discounts
Property of others - Maximum amount insured is liable.
Tenants Improvements - If NOT repairing, will be proportionate value of improvements
to remaining time in lease.
Records - Blank record and cost to transfer data.
Common Clause: Property of Others - correct Answer-Insurer's option to either pay
insured or owner of the property.
Common Clause: Locked Vehicle Warranty *BROAD FORM ONLY* - correct Answer-
Property in vehicles must be kept in fully enclosed, locked vehicles.
Must have signs of forced entry.
What perils are covered under Basic Fire policy? - correct Answer-Fire
Lightning
Explosion of natural, coal or manufactured gas
Excluded PERILS to Basic Fire policy? - correct Answer-Electrical devices by artificial
currents.
Application of heat (only to the item heat was applied to- ensuing fire covered).
War risks.
Nuclear incident or contamination (ensuing fire would be covered)
, Excluded PROPERTY to Basic Fire policy? - correct Answer-Money, bullion &
securities.
Automobiles, trailers, watercraft and airplanes (unless held for sale or solely on
premises for business and unregistered).
Vacancy, unoccupancy or disuse beyond 30 days.
By laws.
EXTENSIONS to Basic Fire policy? - correct Answer-PROPERTY REMOVED:
Removal off premises after loss to protect property.
Extends for 7 days or expiry.
Does not increase limit of insurance.
Same terms and conditions of standard policy.
&
DEBRIS REMOVAL:
Clean up insured property after loss.
25% of direct physical loss in coverage.
No coverage for clean up of pollution.
Not considered in co-insurance calculations.
Subject to policy limits.
Exclusion to Broad Form: Furs, Jewellery and Precious Stones - correct Answer-
Exclusion doesn't apply to first $1,000 of any loss.
Must be direct damage by named perils.
Exclusion to Broad Form: Property in the custody of a sales representative. - correct
Answer-While outside of premises.
Except when amount of insurance for sales reps are described on the declaration page.
Exclusion to Broad Form: Property Seized or Illegally Acquired. - correct Answer-Kept,
stored or transported.
Property seized or confiscated by breach of any law, or by order of any public authority.
Exclusion to Broad Form: Boilers and Pressue Vessels - correct Answer-Any vessel
beyond 15lbs per square inch.
Explosion, rupture, bursting, cracking of any boiler and it's piping/equipment under
water/steam pressure.
Tanks with internal diameter of 24 inches or less (domestic HWT) are fine.
EXCEPT: Manually portable gas cylinders (BBQ tanks)
Exclusion to Broad Form: Non-Insurable Losses - correct Answer-War,
Nuclear incident,
Contamination,
Changes in temperature,
Freezing,
Answers
Identify three methods that can be used to gain access to a Protected Enclosure?
Provide an example for each. - correct Answer-Mechanical: Drills
Thermal: Torches
Explosion: Dynamite
What is the purpose of Perimeter Protection? - correct Answer-To prevent access to the
premises when the business is closed
Define Partial Protection and provide two weaknesses to Partial Protection? - correct
Answer-When only openings to the building are protected, such as windows and doors.
Forced entry through walls or ceilings will go undetected and stay behind thieves will go
unnoticed until they leave.
Common Clause: Indemnity Agreement - correct Answer-Policy pays least of:
ACV at the time of loss,
Insured's interest,
Policy limits
Common Clause: Deductible - correct Answer-Per occurrence
One deductible per location
Common Clause: Co-Insurance - correct Answer-Applies separately to each item.
Waived if loss is below 2% of insurance limit or $5,000.
Encourages insurance to be purchased for at least a certain % of value.
Common Clause: Permission - correct Answer-Granted for:
Other insurance,
Alterations or additions,
To carry substances usual to insured business
Common Clause: Breach of Conditions - correct Answer-Breach must have impacted
loss to deny coverage.
Common Clause: Reinstatement - correct Answer-Losses do not reduce amount of
insurance.
Refunds not impacted by claim in policy period.
,Common Clause: Subrogation - correct Answer-After payment of loss, right of recovery
is transferred to insurer.
Common Clause: Property Protection Systems - correct Answer-Insured must advise of
any known defect or flaw in any:
Fire extinguishing system,
Fire detection system,
Intrusion detection system.
Common Clause: Premium Adjustment - correct Answer-Stock adequately covered of
actual inventory reported at end of term.
6 months to apply for premium adjustment at expiry.
Common Clause: Verification of Values - correct Answer-Insurer has the right to inspect
books:
Any reasonable time during the policy period &
Within one year of cancellation
Common Clause: Basis of Valuation - correct Answer-Policy pays ACV at the time of
loss, not exceeding cost repair.
Exceptions:
Sold stock - selling price less discounts
Property of others - Maximum amount insured is liable.
Tenants Improvements - If NOT repairing, will be proportionate value of improvements
to remaining time in lease.
Records - Blank record and cost to transfer data.
Common Clause: Property of Others - correct Answer-Insurer's option to either pay
insured or owner of the property.
Common Clause: Locked Vehicle Warranty *BROAD FORM ONLY* - correct Answer-
Property in vehicles must be kept in fully enclosed, locked vehicles.
Must have signs of forced entry.
What perils are covered under Basic Fire policy? - correct Answer-Fire
Lightning
Explosion of natural, coal or manufactured gas
Excluded PERILS to Basic Fire policy? - correct Answer-Electrical devices by artificial
currents.
Application of heat (only to the item heat was applied to- ensuing fire covered).
War risks.
Nuclear incident or contamination (ensuing fire would be covered)
, Excluded PROPERTY to Basic Fire policy? - correct Answer-Money, bullion &
securities.
Automobiles, trailers, watercraft and airplanes (unless held for sale or solely on
premises for business and unregistered).
Vacancy, unoccupancy or disuse beyond 30 days.
By laws.
EXTENSIONS to Basic Fire policy? - correct Answer-PROPERTY REMOVED:
Removal off premises after loss to protect property.
Extends for 7 days or expiry.
Does not increase limit of insurance.
Same terms and conditions of standard policy.
&
DEBRIS REMOVAL:
Clean up insured property after loss.
25% of direct physical loss in coverage.
No coverage for clean up of pollution.
Not considered in co-insurance calculations.
Subject to policy limits.
Exclusion to Broad Form: Furs, Jewellery and Precious Stones - correct Answer-
Exclusion doesn't apply to first $1,000 of any loss.
Must be direct damage by named perils.
Exclusion to Broad Form: Property in the custody of a sales representative. - correct
Answer-While outside of premises.
Except when amount of insurance for sales reps are described on the declaration page.
Exclusion to Broad Form: Property Seized or Illegally Acquired. - correct Answer-Kept,
stored or transported.
Property seized or confiscated by breach of any law, or by order of any public authority.
Exclusion to Broad Form: Boilers and Pressue Vessels - correct Answer-Any vessel
beyond 15lbs per square inch.
Explosion, rupture, bursting, cracking of any boiler and it's piping/equipment under
water/steam pressure.
Tanks with internal diameter of 24 inches or less (domestic HWT) are fine.
EXCEPT: Manually portable gas cylinders (BBQ tanks)
Exclusion to Broad Form: Non-Insurable Losses - correct Answer-War,
Nuclear incident,
Contamination,
Changes in temperature,
Freezing,
