CAIB 3 Practice Exam Questions with Answers
Breach of Contract - ✔✔Failure to perform a promise in a contract without legal excuse
Trespass - ✔✔Unlawful interference with someone's person, property, or rights
False Imprisonment - ✔✔Unlawfully holding someone against their will
Easement - ✔✔Right to use another person's land
Constructive Total Loss (MARINE INSURANCE) - ✔✔When the cost of salvaging cargo is too high
compared to its value
Freight (MARINE INSURANCE) - ✔✔Money paid for vessel hire or cargo conveyance between
ports
Particular Average (MARINE INSURANCE) - ✔✔Specific loss to a shipment, excluding general
average
Net Worth - ✔✔Remaining money after liquidating assets and clearing liabilities
Surety Bond - ✔✔Undertaking by one party to be accountable for a third party's obligation
Principal (SURETY BONDS) - ✔✔Person or corporation whose performance is guaranteed
Going Concern Value - ✔✔Difference in property value after a loss if the business continued
, Separation (RISK MANAGEMENT) - ✔✔Dividing an organization's asset or operation into
separate units
Employee is responsible to obtain own coverage under a private accident and Sickness Policy. -
✔✔Extent of law viewing employer's liability for employee injuries
Canada and the United States of America (including its territories and possessions). -
✔✔Coverage territory under Commercial General Liability Policy
Slander - ✔✔Spoken defamation
The S.E.F. No. 20 Loss of Use Endorsement (OPCF 20 Coverage for Transportation Replacement)
provides for the payment of certain costs incurred in the rental of a substitute automobile. -
✔✔Purpose of the S.E.F. No. 20 Loss of Use Endorsement
The carrying of clients or customers or prospective clients or customers. - ✔✔Excluded use of
insured automobile under General Provisions, Definitions, and Exclusions in automobile policies
Straight Bill of Lading. - ✔✔Type of bill of lading that instructs delivery to named consignee only
Administrator of an estate. - ✔✔Person exempt from requiring a Fiduciary Bond
Indemnity Agreement. - ✔✔Back-up secured by the surety when contractor provides cash or
letters of credit
Licenses. - ✔✔Exception to intangible property examples with value
Exposure Avoidance. - ✔✔Risk control technique used when an exposure has been completely
eliminated
Breach of Contract - ✔✔Failure to perform a promise in a contract without legal excuse
Trespass - ✔✔Unlawful interference with someone's person, property, or rights
False Imprisonment - ✔✔Unlawfully holding someone against their will
Easement - ✔✔Right to use another person's land
Constructive Total Loss (MARINE INSURANCE) - ✔✔When the cost of salvaging cargo is too high
compared to its value
Freight (MARINE INSURANCE) - ✔✔Money paid for vessel hire or cargo conveyance between
ports
Particular Average (MARINE INSURANCE) - ✔✔Specific loss to a shipment, excluding general
average
Net Worth - ✔✔Remaining money after liquidating assets and clearing liabilities
Surety Bond - ✔✔Undertaking by one party to be accountable for a third party's obligation
Principal (SURETY BONDS) - ✔✔Person or corporation whose performance is guaranteed
Going Concern Value - ✔✔Difference in property value after a loss if the business continued
, Separation (RISK MANAGEMENT) - ✔✔Dividing an organization's asset or operation into
separate units
Employee is responsible to obtain own coverage under a private accident and Sickness Policy. -
✔✔Extent of law viewing employer's liability for employee injuries
Canada and the United States of America (including its territories and possessions). -
✔✔Coverage territory under Commercial General Liability Policy
Slander - ✔✔Spoken defamation
The S.E.F. No. 20 Loss of Use Endorsement (OPCF 20 Coverage for Transportation Replacement)
provides for the payment of certain costs incurred in the rental of a substitute automobile. -
✔✔Purpose of the S.E.F. No. 20 Loss of Use Endorsement
The carrying of clients or customers or prospective clients or customers. - ✔✔Excluded use of
insured automobile under General Provisions, Definitions, and Exclusions in automobile policies
Straight Bill of Lading. - ✔✔Type of bill of lading that instructs delivery to named consignee only
Administrator of an estate. - ✔✔Person exempt from requiring a Fiduciary Bond
Indemnity Agreement. - ✔✔Back-up secured by the surety when contractor provides cash or
letters of credit
Licenses. - ✔✔Exception to intangible property examples with value
Exposure Avoidance. - ✔✔Risk control technique used when an exposure has been completely
eliminated
