CAIB 2 Chapter 5 Practice Test 1 exam 2023/2024 with 100% correct answers

Define Bailee for Hire. - correct answer Person or organization who has temporary custody of the personal property of another for a purpose other than sale and who is compensated as a condition of such custody Identify three types of Bailees and provide an example of each. - correct answer i) Repair of personal property example: Television repair shop ii) Storage of personal property example: Public storage warehouse iii) Delivery of personal property example: Courier service Define Ordinary Care. - correct answer Requirement to take the same care of the goods of others as would be taken by a prudent and diligent owner of such goods When could bailees be responsible for damage to customer's property? - correct answer Bailees may be responsible for damage to customer's property when negligent in common law or in contract Other than stock coverage found on Bailee's commercial property policies, what are two other policies that could be used to insure customer's property? - correct answer i) Separate policy covering legal liability of bailee ii) Specialized policy insuring customer's property which ignores requirement for legal liability By knowing answers to certain questions, brokers should understand whether the carrier or the owner of pr