CAIB 1 Study guides, Study notes & Summaries

CAIB 1 - CHAPTER 1-4 UPDATED Exam Questions and CORRECT Answers Provide 1 reason why persons should not rely on control of risk as a total solution in eliminating financial loss - Correct ANSWER- -Equipment will not work 100% of the time -certain types of losses such as wind, hail and lightning cannot be effectively controlled People can choose to deal with risk in a variety of ways identify four possible options and provide a brief explanation of each - Correct ANSWER- Avoid the risk - ...

CAIB 1 - Chapter 1 UPDATED Exam Questions and CORRECT Answers Define "Risk" - Correct ANSWER- The chance of a financial loss to which the object of insurance may be exposed to List 3 Categories of Risk - Correct ANSWER- 1) Personal 2) Property 3) Liability List 4 Types of Risk Management Techniques - Correct ANSWER- 1) Risk Avoidance 2) Risk Retention 3) Risk Control 4) Risk Transfer Define "Risk Avoidance" - Correct ANSWER- To avoid doing something in order to eliminate the chanc...

CAIB 1 Practice Questions (100) UPDATED Exam Questions and CORRECT Answers Consideration is... a. The law of insurance b. A promise between parties c. A contract's binding force d. An exchange of something of value - Correct ANSWER- d. An exchange of something of value A stock company is... a. A company that invests in other companies

Risk the chance of financial loss to which an object of insurance is exposed Speculative Risk possibility of financial loss or gain Pure Risk Chance of financial loss, no gain Insurance undertaking by one person to indemnify another person against loss or liability for loss in respect of a certain risk or peril to which the object of insurance may be exposed or to pay a sum of money or other ting of value upon the happening of a certain event Contract an agreement between two or more perso...

What are 3 actions which demonstrate a brokers unethical conduct? to sell more insurance than is needed, to sell higher priced coverages when equivalent coverage is available for a lower price, to recommend policies with a higher commission. What are 3 qualities of a professional? commitment to higher ethical standards, have a high standard of educational preparedness with mandatory continuous education, have a formal association regulating power over its members What responsibilities do b...

Define in pure insurance terms "risk" The chance of financial loss to which an object of insurance is exposed List the 3 categories of risk generally faced by people Personal Risk; Property Risk; Liability Risk State 4 possible options people can choose to deal with risk Avoidance of Risk; Controlling Risk; Retention of Risk; Transfer of Risk Give a brief explanation and example of Avoidance of Risk When chance of financial loss is eliminated. (Ex. People who rent rather than purchase t...

What are the 3 types of Homeowners Forms? 1. Homeowners Basic 2. Homeowners Broad 3. Homeowners Comprehensive Who develops insurance forms? Insurance Bureau of Canada What types of risks are now eligible for coverage? Dwellings containing more than one family, Insureds who own more than one dwelling, Mobile homes on full basements, dwellings in course of construction

Define "Risk" The chance of a financial loss to which the object of insurance may be exposed to List 3 Categories of Risk 1) Personal 2) Property 3) Liability List 4 Types of Risk Management Techniques 1) Risk Avoidance 2) Risk Retention 3) Risk Control 4) Risk Transfer Define "Risk Avoidance" To avoid doing something in order to eliminate the chance of risk Define "Risk Retention" To self-insure or to pay for losses themselves

RISK Chance of financial loss to which an object of insurance is exposed SPECULATIVE RISK the chance of financial loss or gain PURE RISK the chance of financial loss but no chance of financial gain

Risk the chance of financial loss to which an object of insurance is exposed Speculative Risk possibility of financial loss or gain Pure Risk Chance of financial loss, no g