CAIB 2 Exam 2025 Questions and
Answers
Your client, a retail fashion store, has just rented a business premises in a mall. Before opening your
business, she plans to install new wall to wall carpeting and install wall paneling. These values would
be insured under the amount provided for:
A. Stock
B. Equipment
C. Building
D. Business Interruption - ANSWER✔️✔️-B. Equipment
While the law permits the insurer to surrogate against the party responsible for the loss, the insurer
agrees not to exercise that right in respect to certain parties under the policy. Which of the following
parties would be surrogates agains in the event of their responsibility?
A. insureds business partner
B. Mortgagee
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 1
,C. Parents who provide financing
D. Independent contractor - ANSWER✔️✔️-D. Independent contractor
The commercial building, equipment and stock (broad form policy) insures all of the following
except:
A. Theft or attempted theft
B. Rupture of freezing
C. Collapse
D. Mysterious disappearance - ANSWER✔️✔️-D. Mysterious disappearance
Under a commercial property insurance policy, which of the following would be considered
equipment?
A. Photocopier leased from ideal copiers
B. Advertising brochures promoting next months end sales
C. Customers shoes kept on premises overnight for repair
D. Shoes held on consignment - ANSWER✔️✔️-A. Photocopier leased from ideal copiers
The consequential loss assumption clauses is defined to insured:
A. Damage caused to refrigerator or cooling equipment
B. Damage caused by freezing due to power failure
C. Loss to stock due to loss of temperature
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 2
,D. Contamination of stock due to rupture of supply piping - ANSWER✔️✔️-C. Loss to stock due
to loss of temperature
The coverages provided by the coverages provided by the contractors equipment floater would
insured which of the following losses?
A. Damage caused to front end loader due to freezing
B. Cracking of engine block on caterpillar due to freezing
C. Fire damage to contractors plans, blueprints, design or specifications
D. Sinking of caterpillar while operating over muskeg - ANSWER✔️✔️-A. Damage caused to
front end loader due to freezing
The safe burglary rider would insure one of the following losses:
A. Money taken from locked cash drawer
B. Money and securities taken from an unlocked safe
C. Money and securities taken from a locked safe by the burglar who knew its combination
D. Removal of the safe from the premises - ANSWER✔️✔️-D. Removal of the safe from the
premises
The insurance industry relies on the classifications developed by the following body when
determining the appropriateness of the protection provided to property by safes,vaults and other:
A. IAO
B. ULC
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 3
, C. IBC
D. Canada Safety Council - ANSWER✔️✔️-B. ULC
All of the following statements except one are true when the insureds business has been interrupted
by order of civil authority. Pick the exception:
A. Insured's building must have suffered physical damage
B. Coverage is limited to a maximum of two weeks
C. Insured is entitled to recover lost income even through there has been no actual damage to the
insured property
D. Order must have been given as a direct result of damage to neighbouring premises by a peril
insured against on the insureds own premises - ANSWER✔️✔️-A. Insureds business must have
suffered physical damage
Accommodation business is best described as:
A. A specialized type of insurance risk which included hotels, motels, apartment buildings and rental
property
B. A risk which can be insured only under a subscription policy
C. A risk which is substandard or marginal, but which, because of its relationship with the broker,
the insurer agrees to to underwrite
D. A risk which is normally acceptable to the insurer but which cannot be bound by the broker
without the insurers consent - ANSWER✔️✔️-C. A risk which is substandard or marginal, but
which, because of its relationship with the broker, the insurer agrees to underwrite
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 4
Answers
Your client, a retail fashion store, has just rented a business premises in a mall. Before opening your
business, she plans to install new wall to wall carpeting and install wall paneling. These values would
be insured under the amount provided for:
A. Stock
B. Equipment
C. Building
D. Business Interruption - ANSWER✔️✔️-B. Equipment
While the law permits the insurer to surrogate against the party responsible for the loss, the insurer
agrees not to exercise that right in respect to certain parties under the policy. Which of the following
parties would be surrogates agains in the event of their responsibility?
A. insureds business partner
B. Mortgagee
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 1
,C. Parents who provide financing
D. Independent contractor - ANSWER✔️✔️-D. Independent contractor
The commercial building, equipment and stock (broad form policy) insures all of the following
except:
A. Theft or attempted theft
B. Rupture of freezing
C. Collapse
D. Mysterious disappearance - ANSWER✔️✔️-D. Mysterious disappearance
Under a commercial property insurance policy, which of the following would be considered
equipment?
A. Photocopier leased from ideal copiers
B. Advertising brochures promoting next months end sales
C. Customers shoes kept on premises overnight for repair
D. Shoes held on consignment - ANSWER✔️✔️-A. Photocopier leased from ideal copiers
The consequential loss assumption clauses is defined to insured:
A. Damage caused to refrigerator or cooling equipment
B. Damage caused by freezing due to power failure
C. Loss to stock due to loss of temperature
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 2
,D. Contamination of stock due to rupture of supply piping - ANSWER✔️✔️-C. Loss to stock due
to loss of temperature
The coverages provided by the coverages provided by the contractors equipment floater would
insured which of the following losses?
A. Damage caused to front end loader due to freezing
B. Cracking of engine block on caterpillar due to freezing
C. Fire damage to contractors plans, blueprints, design or specifications
D. Sinking of caterpillar while operating over muskeg - ANSWER✔️✔️-A. Damage caused to
front end loader due to freezing
The safe burglary rider would insure one of the following losses:
A. Money taken from locked cash drawer
B. Money and securities taken from an unlocked safe
C. Money and securities taken from a locked safe by the burglar who knew its combination
D. Removal of the safe from the premises - ANSWER✔️✔️-D. Removal of the safe from the
premises
The insurance industry relies on the classifications developed by the following body when
determining the appropriateness of the protection provided to property by safes,vaults and other:
A. IAO
B. ULC
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 3
, C. IBC
D. Canada Safety Council - ANSWER✔️✔️-B. ULC
All of the following statements except one are true when the insureds business has been interrupted
by order of civil authority. Pick the exception:
A. Insured's building must have suffered physical damage
B. Coverage is limited to a maximum of two weeks
C. Insured is entitled to recover lost income even through there has been no actual damage to the
insured property
D. Order must have been given as a direct result of damage to neighbouring premises by a peril
insured against on the insureds own premises - ANSWER✔️✔️-A. Insureds business must have
suffered physical damage
Accommodation business is best described as:
A. A specialized type of insurance risk which included hotels, motels, apartment buildings and rental
property
B. A risk which can be insured only under a subscription policy
C. A risk which is substandard or marginal, but which, because of its relationship with the broker,
the insurer agrees to to underwrite
D. A risk which is normally acceptable to the insurer but which cannot be bound by the broker
without the insurers consent - ANSWER✔️✔️-C. A risk which is substandard or marginal, but
which, because of its relationship with the broker, the insurer agrees to underwrite
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 4
