CAIB 2 - CHAPTER 1 EXAM (NEWEST VERSION) | ALL QUESTIONS AND C
RECT ANSWERS (DETAILED ANSWERS) | GRADED A+ | VERIFIED ANSWER
LATEST EXAM
Only the property specifically listed or
Scheduled coverage.
scheduled on the policy is insured.
Property of Every Description (POED) Building, Stock and Equipment are in-
coverage. sured under a single limit of insurance.
All property owned by the insured is cov-
ered or "blanketed" by a single limit of
All Property (Blanket) coverage.
insurance. (May insure property at more
than one location.)
1) Building
The three classes of property insured by
2) Equipment
commercial property insurance policies.
3) Stock.
Regarding stock coverage, why it's im-
It sets the stock coverage to items that
portant to provide a proper description of
are USUAL to the insured's business.
the business to the insurer.
- The lost or damaged property is similar
"Similar property belonging to others"
to that insured by the policy;
is automatically covered under the
- The insured was under an obligation to
amounts of insurance for stock and
insure that property;
equipment if...
- The insured was legally liable for it.
1) Fixed structures located on the
premises;
2) Additions and extensions communi-
cating and in contact with the building;
3) Permanent fitting and fixtures at-
tached to and forming part of the build-
The five components found in the defini- ing;
tion of "building" in commercial property 4) Materials, equipment and supplies on
policies. the premises for maintenance of, and
normal repairs and minor alterations to
the building, or for building services;
5) Growing plants, trees, shrubs or flow-
ers inside the building used for decora-
tive purposes, when the insured owns
the building.
"Premises." 1/9
, CAIB 2 - CHAPTER 1 EXAM (NEWEST VERSION) | ALL QUESTIONS AND C
RECT ANSWERS (DETAILED ANSWERS) | GRADED A+ | VERIFIED ANSWER
LATEST EXAM
The entire area within the property lines
and areas and areas under adjoining
sidewalks and driveways at the location
described on the Declarations Page, and
in or on vehicles within 100 meters (328
feet) of such locations.
1) Merchandise of every description usu-
al to the insured's business;
2) Packing, wrapping and advertising
The three components found in the defi- materials;
nition of "stock" in commercial policies. 3) Similar property belonging to others
which the insured is under obligation to
keep insured or for which he is legally
liable.
1) All contents usual to the insured's
business (including furniture, fittings, fix-
tures, machinery, tools, etc.) other than
"building" or "stock";
2) Similar property belonging to others
which the insured is under obligation to
The three components of "equipment" keep insured or for which he is legally
found in commercial policies. liable;
3) Tenant's improvements, which are de-
fined as building improvements, alter-
ations, and betterments made at the ex-
pense of the insured to a "building" occu-
pied but not owned by the insured, and
which are not otherwise insured.
1) Actual Cash Value
The three ways property may be valued. 2) Replacement Value
3) Book Value.
The cost to repair or replace lost or dam-
The traditional meaning of Actual Cash
aged property, less the application of any
Value (ACV).
depreciation.
The two methods under the Formu-
la/Cost Approach Method to determine 2/9
the Actual Cash Value of a building.
RECT ANSWERS (DETAILED ANSWERS) | GRADED A+ | VERIFIED ANSWER
LATEST EXAM
Only the property specifically listed or
Scheduled coverage.
scheduled on the policy is insured.
Property of Every Description (POED) Building, Stock and Equipment are in-
coverage. sured under a single limit of insurance.
All property owned by the insured is cov-
ered or "blanketed" by a single limit of
All Property (Blanket) coverage.
insurance. (May insure property at more
than one location.)
1) Building
The three classes of property insured by
2) Equipment
commercial property insurance policies.
3) Stock.
Regarding stock coverage, why it's im-
It sets the stock coverage to items that
portant to provide a proper description of
are USUAL to the insured's business.
the business to the insurer.
- The lost or damaged property is similar
"Similar property belonging to others"
to that insured by the policy;
is automatically covered under the
- The insured was under an obligation to
amounts of insurance for stock and
insure that property;
equipment if...
- The insured was legally liable for it.
1) Fixed structures located on the
premises;
2) Additions and extensions communi-
cating and in contact with the building;
3) Permanent fitting and fixtures at-
tached to and forming part of the build-
The five components found in the defini- ing;
tion of "building" in commercial property 4) Materials, equipment and supplies on
policies. the premises for maintenance of, and
normal repairs and minor alterations to
the building, or for building services;
5) Growing plants, trees, shrubs or flow-
ers inside the building used for decora-
tive purposes, when the insured owns
the building.
"Premises." 1/9
, CAIB 2 - CHAPTER 1 EXAM (NEWEST VERSION) | ALL QUESTIONS AND C
RECT ANSWERS (DETAILED ANSWERS) | GRADED A+ | VERIFIED ANSWER
LATEST EXAM
The entire area within the property lines
and areas and areas under adjoining
sidewalks and driveways at the location
described on the Declarations Page, and
in or on vehicles within 100 meters (328
feet) of such locations.
1) Merchandise of every description usu-
al to the insured's business;
2) Packing, wrapping and advertising
The three components found in the defi- materials;
nition of "stock" in commercial policies. 3) Similar property belonging to others
which the insured is under obligation to
keep insured or for which he is legally
liable.
1) All contents usual to the insured's
business (including furniture, fittings, fix-
tures, machinery, tools, etc.) other than
"building" or "stock";
2) Similar property belonging to others
which the insured is under obligation to
The three components of "equipment" keep insured or for which he is legally
found in commercial policies. liable;
3) Tenant's improvements, which are de-
fined as building improvements, alter-
ations, and betterments made at the ex-
pense of the insured to a "building" occu-
pied but not owned by the insured, and
which are not otherwise insured.
1) Actual Cash Value
The three ways property may be valued. 2) Replacement Value
3) Book Value.
The cost to repair or replace lost or dam-
The traditional meaning of Actual Cash
aged property, less the application of any
Value (ACV).
depreciation.
The two methods under the Formu-
la/Cost Approach Method to determine 2/9
the Actual Cash Value of a building.
