CAIB 2 Chapter 2 Study Guide Questions with
Answers
Identify the five mounting losses of liability insurers of the 1980's - ✔✔1. Disproportionately
high court awards in the USA
2. Environmental Disasters
3. Aviation Disasters
4. Inadequate assessment of potentially dangerous risks
5. Latent bodily injury claims
Identify the five sections of the IBC 2100 - ✔✔1. Coverages (A,B,C,D)
2. Who is an insured
3. Limits of insurance
4. Commercial General Liability conditions
5. Definitions
Identify the four coverages of Section 1 of the IBC 2100 - ✔✔A. Bodily injury & Property
Damage Liability
B. Personal Injury & Advertising injury Liability
C. Medical Payments
D. Tenants Legal Liability
Identify the eight key features of Insuring Agreement 1 - ✔✔1. Coverage provided for bodily
injury and property damage only
2. Payment made only for 'those sums that the insured becomes legally obligated to pay'
3. Insurer liable for payment of compensatory damages only
4. Coverage is provided only for losses which occur during the policy period
5. Injury or damage must be caused by an occurrence
, 6. Loss or damage must take place in the coverage territory
7. Insurer's right and duty to defend any action
8. Insurer reserves the right to a) investigate any claim and b) settle any claim or action as its
discretion
Identify the three terms contained in the definition of Bodily Injury - ✔✔1. Bodily Injury
2. Sickness or disease
3. Death
Explain the two key coverages included under the definition of Property Damage - ✔✔1.
Physical injury to tangible property, including all resulting loss of use of that property OR
2. Loss of use of tangible property that is not physically injured
Identify who decides 'those sums that the insured becomes legally obligated to pay' - ✔✔The
courts
Identify the three types of liability that may be faced by business owners - ✔✔1. Tort Liability
2. Certain Contractual Liabilities
3. Statutory Liability
Explain what is meant by Compensatory Damages - ✔✔These damages are intended to attach,
as nearly as possible, a dollar value to the injury or damage for which the insured is legally
obligated
Identify which policy would respond to a claim for bodily injury that occurred 10 years ago -
✔✔The policy that was in effect 10 years ago
Define Occurrence - ✔✔Means an accident, including continuous or repeated exposure to
substantially the same general harmful conditions
Answers
Identify the five mounting losses of liability insurers of the 1980's - ✔✔1. Disproportionately
high court awards in the USA
2. Environmental Disasters
3. Aviation Disasters
4. Inadequate assessment of potentially dangerous risks
5. Latent bodily injury claims
Identify the five sections of the IBC 2100 - ✔✔1. Coverages (A,B,C,D)
2. Who is an insured
3. Limits of insurance
4. Commercial General Liability conditions
5. Definitions
Identify the four coverages of Section 1 of the IBC 2100 - ✔✔A. Bodily injury & Property
Damage Liability
B. Personal Injury & Advertising injury Liability
C. Medical Payments
D. Tenants Legal Liability
Identify the eight key features of Insuring Agreement 1 - ✔✔1. Coverage provided for bodily
injury and property damage only
2. Payment made only for 'those sums that the insured becomes legally obligated to pay'
3. Insurer liable for payment of compensatory damages only
4. Coverage is provided only for losses which occur during the policy period
5. Injury or damage must be caused by an occurrence
, 6. Loss or damage must take place in the coverage territory
7. Insurer's right and duty to defend any action
8. Insurer reserves the right to a) investigate any claim and b) settle any claim or action as its
discretion
Identify the three terms contained in the definition of Bodily Injury - ✔✔1. Bodily Injury
2. Sickness or disease
3. Death
Explain the two key coverages included under the definition of Property Damage - ✔✔1.
Physical injury to tangible property, including all resulting loss of use of that property OR
2. Loss of use of tangible property that is not physically injured
Identify who decides 'those sums that the insured becomes legally obligated to pay' - ✔✔The
courts
Identify the three types of liability that may be faced by business owners - ✔✔1. Tort Liability
2. Certain Contractual Liabilities
3. Statutory Liability
Explain what is meant by Compensatory Damages - ✔✔These damages are intended to attach,
as nearly as possible, a dollar value to the injury or damage for which the insured is legally
obligated
Identify which policy would respond to a claim for bodily injury that occurred 10 years ago -
✔✔The policy that was in effect 10 years ago
Define Occurrence - ✔✔Means an accident, including continuous or repeated exposure to
substantially the same general harmful conditions
