QUALYS VMDR Training Test Questions with Verified
Answers
Insurers are in the business of assuming the
financial risks of others which involves entering
into a formal contract. A contract is enforceable Policies insuring against the peril of fire must
at law only when all legal elements have been contain Fire Statutory Conditions. Indicate the
observed. Insurance contracts differ from other Statutory Condition and the applicable rules:
formal agreements and are subject to what three During the policy term the insured installed a
additional elements? - ANSWER -Insurable wood burning stove as a secondary heating
Interest device. The application indicates that a gas
Utmost Good Faith furnace is used to heat the premises. -
Indemnity ANSWER -Material Change. The insured
must notify the insurer promptly of any change
that serves to increase the chance of loss. After
receiving notification of the Material Change the
Explain the meaning and disadvantage of the insurer has the option to cancel the policy and
following approaches: Avoidance of Risk & return the unearned portion of the premium to the
Control of Risk - ANSWER -Avoidance: insured; or continue to insure the risk and advise
Avoidance means that all chance of financial loss the insured in writing of the additional premium
has been eliminated or a decision not to do payable.
something. The disadvantage is its not very
effective as often the elimination of one exposure
creates another in its place.
Control: taking measures to reduce the All Homeowners policies describe the Basis of
frequency and severity of losses. The Claim Payment for loss or damage to dwelling
disadvantage is that not all losses can be building, detached private structures and
controlled, because equipment will not work personal property. Indicate the basis of
100% of the time settlement and conditions: Water used to
extinguish a small fire at the Insured's home
destroyed all electronic media and records kept
by the Insured. - ANSWER -Cost to
Identify the three elements that are unique to reproduce lost or damage media from duplicates
contracts of insurance: - ANSWER - or from originals of the previous generation of the
Insurable Interest, Utmost Good Faith, and media. The payment for lost records is the cost of
Indemnity blank books, pages, cards or other materials plus
the cost of actually transcribing or copying such
records.
The Insurance Act restricts payment for an
insured loss to those amounts required to
indemnify the Insured. Indicate the amount the Another option for insuring property values under
Insured is legally entitled to receive and the Homeowners policies is the "Single Limit" basis.
measure used to determine this value. - Explain how this basis differs from the usual
ANSWER -Entitled to receive payment for coverage format and the advantage that this
the actual amount of the loss, no more and no approach offers: - ANSWER -Coverages A
less. The measure is the value of the object of to D are combined into one single limit. The
insurance as it was immediately before the loss. advantage is that this approach eliminates the
coverage restriction otherwise applicable to
, CAIB 1 Practice Exam Questions with Answers Graded A+
Coverages B, C and D.
Individuals who own one or more units in a
multiple unit building have an insurable interest in
the building structure, common elements and
The Homeowners Comprehensive Form (IBC personal property. Identify and briefly explain
1155) is superior to all other Homeowners three coverages that are unique to the
policies. State how this policy describes "Insured Condominium Unit Owners Policy: -
Perils" - ANSWER -This policy "insures ANSWER -Unit Improvements and
against all risks of direct physical loss or damage Betterments: insures the value of improvements
subject to the exclusions and conditions of this and betterments by the insured, including any
form" building, structure or swimming pool, and
materials and supplies on the premises for use in
such improvements or betterments.
Indicate the coverage provided for Emergency Loss Assessment: allows the Insured to claim the
Removal Expense under the Mobile amount of an assessment paid due to a loss to
Homeowners Form. - ANSWER -Covered collectively owned property if covered under the
up to 5% of the amount of insurance on the Insured's policy.
dwelling and covers reasonable expenses
incurred in disconnecting water and power, and Unit Additional Protection: covers the Insured's
towing or transporting costs. unit, excluding damage to improvements and
betterments, when the Condominium Corporation
has no insurance, or it is inadequate
What is the basis of claim payment for loss or
damage to the mobile home, detached private
structures and personal property under a Mobile Insureds often find the limit of insurance for
Homeowners Policy? - ANSWER -The certain personal property items provided by
basis of claim is Actual Cash Value; payment for homeowners and other habitational forms
loss or damage to personal property is made on inadequate and opt to insure individual articles
the same basis as under Homeowners Forms. under a Personal Articles Endorsement. The
broad coverage combined with the high value of
the articles insured necessitates strict
underwriting considerations. Explain three (3)
Identify two (2) other coverages included under C underwriting requirements applicable to this
- Personal Property, which are not found in a coverage option. - ANSWER -1. Each
Homeowners policy - ANSWER - article must be separately described and a
Improvements or betterments made by or specific amount set for each.
acquired at the expense of the tenant; $500 for 2. Current valuation of individual jewellery items
damage (excluding fire damage) to the portion of or furs is usually required when the value
the building occupied by the tenant resulting from exceeds a certain amount. A bill of sale or recent
theft or attempted theft; Damage caused to the appraisal is usually sufficient to meet this
interior of the building by vandalism or malicious underwriting requirement.
acts. 3. May require an appraisal from an independent
qualified appraiser. An updated appraisal may be
required from time to time.
Answers
Insurers are in the business of assuming the
financial risks of others which involves entering
into a formal contract. A contract is enforceable Policies insuring against the peril of fire must
at law only when all legal elements have been contain Fire Statutory Conditions. Indicate the
observed. Insurance contracts differ from other Statutory Condition and the applicable rules:
formal agreements and are subject to what three During the policy term the insured installed a
additional elements? - ANSWER -Insurable wood burning stove as a secondary heating
Interest device. The application indicates that a gas
Utmost Good Faith furnace is used to heat the premises. -
Indemnity ANSWER -Material Change. The insured
must notify the insurer promptly of any change
that serves to increase the chance of loss. After
receiving notification of the Material Change the
Explain the meaning and disadvantage of the insurer has the option to cancel the policy and
following approaches: Avoidance of Risk & return the unearned portion of the premium to the
Control of Risk - ANSWER -Avoidance: insured; or continue to insure the risk and advise
Avoidance means that all chance of financial loss the insured in writing of the additional premium
has been eliminated or a decision not to do payable.
something. The disadvantage is its not very
effective as often the elimination of one exposure
creates another in its place.
Control: taking measures to reduce the All Homeowners policies describe the Basis of
frequency and severity of losses. The Claim Payment for loss or damage to dwelling
disadvantage is that not all losses can be building, detached private structures and
controlled, because equipment will not work personal property. Indicate the basis of
100% of the time settlement and conditions: Water used to
extinguish a small fire at the Insured's home
destroyed all electronic media and records kept
by the Insured. - ANSWER -Cost to
Identify the three elements that are unique to reproduce lost or damage media from duplicates
contracts of insurance: - ANSWER - or from originals of the previous generation of the
Insurable Interest, Utmost Good Faith, and media. The payment for lost records is the cost of
Indemnity blank books, pages, cards or other materials plus
the cost of actually transcribing or copying such
records.
The Insurance Act restricts payment for an
insured loss to those amounts required to
indemnify the Insured. Indicate the amount the Another option for insuring property values under
Insured is legally entitled to receive and the Homeowners policies is the "Single Limit" basis.
measure used to determine this value. - Explain how this basis differs from the usual
ANSWER -Entitled to receive payment for coverage format and the advantage that this
the actual amount of the loss, no more and no approach offers: - ANSWER -Coverages A
less. The measure is the value of the object of to D are combined into one single limit. The
insurance as it was immediately before the loss. advantage is that this approach eliminates the
coverage restriction otherwise applicable to
, CAIB 1 Practice Exam Questions with Answers Graded A+
Coverages B, C and D.
Individuals who own one or more units in a
multiple unit building have an insurable interest in
the building structure, common elements and
The Homeowners Comprehensive Form (IBC personal property. Identify and briefly explain
1155) is superior to all other Homeowners three coverages that are unique to the
policies. State how this policy describes "Insured Condominium Unit Owners Policy: -
Perils" - ANSWER -This policy "insures ANSWER -Unit Improvements and
against all risks of direct physical loss or damage Betterments: insures the value of improvements
subject to the exclusions and conditions of this and betterments by the insured, including any
form" building, structure or swimming pool, and
materials and supplies on the premises for use in
such improvements or betterments.
Indicate the coverage provided for Emergency Loss Assessment: allows the Insured to claim the
Removal Expense under the Mobile amount of an assessment paid due to a loss to
Homeowners Form. - ANSWER -Covered collectively owned property if covered under the
up to 5% of the amount of insurance on the Insured's policy.
dwelling and covers reasonable expenses
incurred in disconnecting water and power, and Unit Additional Protection: covers the Insured's
towing or transporting costs. unit, excluding damage to improvements and
betterments, when the Condominium Corporation
has no insurance, or it is inadequate
What is the basis of claim payment for loss or
damage to the mobile home, detached private
structures and personal property under a Mobile Insureds often find the limit of insurance for
Homeowners Policy? - ANSWER -The certain personal property items provided by
basis of claim is Actual Cash Value; payment for homeowners and other habitational forms
loss or damage to personal property is made on inadequate and opt to insure individual articles
the same basis as under Homeowners Forms. under a Personal Articles Endorsement. The
broad coverage combined with the high value of
the articles insured necessitates strict
underwriting considerations. Explain three (3)
Identify two (2) other coverages included under C underwriting requirements applicable to this
- Personal Property, which are not found in a coverage option. - ANSWER -1. Each
Homeowners policy - ANSWER - article must be separately described and a
Improvements or betterments made by or specific amount set for each.
acquired at the expense of the tenant; $500 for 2. Current valuation of individual jewellery items
damage (excluding fire damage) to the portion of or furs is usually required when the value
the building occupied by the tenant resulting from exceeds a certain amount. A bill of sale or recent
theft or attempted theft; Damage caused to the appraisal is usually sufficient to meet this
interior of the building by vandalism or malicious underwriting requirement.
acts. 3. May require an appraisal from an independent
qualified appraiser. An updated appraisal may be
required from time to time.
