CAIB 3 FINAL EXAMINATION QUESTIONS WITH 100% CORRECT ANSWERS |VERIFIED

Define the following insurance terms. Bill of Lading - Documents issued by carriers responsible for transporting or forwarding goods Constructive Total Loss (MARINE INSURANCE) - Occurs when the cost of salvaging the cargo is too high relative to the value saved Working Capital - Amounts of funds available to pay continuing business operating expenses until payment is received for work being undertaken by the contractor Penalty (SURETY BOND) - Amount of credit given to the principal by the surety or the amount which the surety is prepared to pay in the event the principal should default Going Concern Value - Difference in the value of property which must be sold after a loss and its value had the business continued Question #2 All of the following statements in regards to the coverages provided under Coverage A. Bodily Injury and Property Damage Liability (Commercial General Liability Policy) are true, except one. Pick the Exception. a) Coverage provided only for such sums as the insured is legally obligated to pay as damages. b) Insurer has both a right and duty to defend the insured. c) Coverage is provided only for losses which occur during the policy period. d) Only those losses which occur in Canada and the United States of America(including its territories and possessions) are insured. - d) Only those losses which occur in Canada and the United States of America(including its territories and possessions) are insured.