CAIB 2 - CHAPTER 3 EXAM 2025
QUESTIONS AND ANSWERS 100% PASS
1) Failure or malfunction of mechanical or electrical equipment;
2) Arson;
3) Misuse of ignition source. - ✔✔The three leading causes of fire losses in Canada.
Policy period takes effect at 12:01 a.m. standard time at the address of the Named
Insured as stated on the policy. - ✔✔The policy-period start that's applicable to most
commercial property policies.
The insurer is liable to that party, meaning that it may have to pay the claim twice. -
✔✔This happens when an additional payee is named on the policy and the insurer
makes full loss payment to the insured.
They don't want to divulge their rates to competitors. - ✔✔The reason why insurers
don't provide breakdowns of coverage rates.
Direct loss or damage from fire, lightning and explosion of natural, coal or
manufactured gas. - ✔✔Provincial legislation requires that policies insuring against the
peril of fire must include all of these coverages.
Vacancy, unoccupancy and when premises are shut down. - ✔✔These conditions
increase the physical hazard for which coverage is excluded by the Fire Policy.
COPYRIGHT © 2025 BY SOPHIA BENNETT, ALL RIGHTS RESERVED 1
, Any increase in the costs to rebuild, repair or replace the insured's building after a loss
that are incurred to comply with a law or by-law are not insured. - ✔✔Summary of the
by-laws exclusion.
Coverage is provided for property at location(s) not shown on the policy, as long as the
insured can show that the property was "necessarily" removed to prevent loss.
The coverage amount is limited to the insurance amount remaining after payment of
any losses at the insured location. Coverage at an unnamed location is limited to the
least of 7 days or the remaining policy term. - ✔✔Provisions of the removal clause.
Removal of debris from insured premises after loss or damage to the insured property
from an insured peril. - ✔✔Coverage provided by the Debris Removal clause.
Empty, or when the normal occupant is absent and the contents have been removed. -
✔✔"Vacant."
Lack of habitual presence of human beings, or when premises are complete with
contents but the person who normally occupies the premises is temporarily away. -
✔✔"Unoccupied."
A) Fire or lightning
B) Explosion
C) Impact by Aircraft, Spacecraft or Land Vehicle
D) Riot, Vandalism or Malicious Acts
E) Smoke
F) Leakage from fire protective equipment
G) Windstorm or Hail. - ✔✔Perils included in the Named Perils Form.
An additional rate charged over and above the fire rate. - ✔✔"Loading."
COPYRIGHT © 2025 BY SOPHIA BENNETT, ALL RIGHTS RESERVED 2
QUESTIONS AND ANSWERS 100% PASS
1) Failure or malfunction of mechanical or electrical equipment;
2) Arson;
3) Misuse of ignition source. - ✔✔The three leading causes of fire losses in Canada.
Policy period takes effect at 12:01 a.m. standard time at the address of the Named
Insured as stated on the policy. - ✔✔The policy-period start that's applicable to most
commercial property policies.
The insurer is liable to that party, meaning that it may have to pay the claim twice. -
✔✔This happens when an additional payee is named on the policy and the insurer
makes full loss payment to the insured.
They don't want to divulge their rates to competitors. - ✔✔The reason why insurers
don't provide breakdowns of coverage rates.
Direct loss or damage from fire, lightning and explosion of natural, coal or
manufactured gas. - ✔✔Provincial legislation requires that policies insuring against the
peril of fire must include all of these coverages.
Vacancy, unoccupancy and when premises are shut down. - ✔✔These conditions
increase the physical hazard for which coverage is excluded by the Fire Policy.
COPYRIGHT © 2025 BY SOPHIA BENNETT, ALL RIGHTS RESERVED 1
, Any increase in the costs to rebuild, repair or replace the insured's building after a loss
that are incurred to comply with a law or by-law are not insured. - ✔✔Summary of the
by-laws exclusion.
Coverage is provided for property at location(s) not shown on the policy, as long as the
insured can show that the property was "necessarily" removed to prevent loss.
The coverage amount is limited to the insurance amount remaining after payment of
any losses at the insured location. Coverage at an unnamed location is limited to the
least of 7 days or the remaining policy term. - ✔✔Provisions of the removal clause.
Removal of debris from insured premises after loss or damage to the insured property
from an insured peril. - ✔✔Coverage provided by the Debris Removal clause.
Empty, or when the normal occupant is absent and the contents have been removed. -
✔✔"Vacant."
Lack of habitual presence of human beings, or when premises are complete with
contents but the person who normally occupies the premises is temporarily away. -
✔✔"Unoccupied."
A) Fire or lightning
B) Explosion
C) Impact by Aircraft, Spacecraft or Land Vehicle
D) Riot, Vandalism or Malicious Acts
E) Smoke
F) Leakage from fire protective equipment
G) Windstorm or Hail. - ✔✔Perils included in the Named Perils Form.
An additional rate charged over and above the fire rate. - ✔✔"Loading."
COPYRIGHT © 2025 BY SOPHIA BENNETT, ALL RIGHTS RESERVED 2
