(CAIB) Level 2 Comprehensive Q&A Bundle!

Identify the three leading causes of fires in canada -failure or malfunction of mechanical or electrical equipment -arson, suspected arson and other set fires -misuse of source of ignition Identify what information is required by law to appear on all insurance policies names of parties to the contr...

1. Endorsements; changes the terms or conditions of the insureds policy 2. Riders; adds additional coverage to those already in place 3. Separate policies; equipment breakdown insurance, computer crime, other specialized coverages often purchased separately but can be added to existing policy Breifl...

Define 'adverse selection' This happens when only those accounts exposed to certain perils are the accounts applying for coverage such as those near rivers are the only accounts applying for flood coverage What are four functions performed by underwriters 1) Risk selection 2) Risk classificat...

3 conditions or obligations that insured owed before Replacement Cost Settlement payout is issued ( Payment after, Diligence ,Site ) 1) payment is made after replacement work is completed 2) replacment work must be done in due diligence and dispatch 3) replacement must be at same site or adjacent si...

Identify three reasons or obstacles to selling business interruption instance 1. Is perceived as being too technical 2. Reluctance of insured to reveal earnings 3. Lack of consumer knowledge Identify seven sources of business interruption losses 1. Physical damage to property 2. Failure or breakdow...

An application and a submission are not the same thing. Identify three items that a submission may include: -an application -additional verbal information -additional written information, including previous policy premium, loss history and details of loses, financial statements, photographs Ident...

Identify three reasons why a bailee may have temporary custody of the personal property of another for repair For safekeeping or storage For delivery to others Identify three examples of businesses who may be bailees for hire small engine repair shops Dry cleaners Tailors Briefly e...

Explain what it means to issue insurance on a scheduled basis Only the property listed or scheduled on the policy is insured Explain what is meant to issue insurance on the basis of Property of Every Description Building, stock and equipment are insured under a single limit of insurance Explain wh...

The three amounts to be considered when calculating the amount of payment as outlined in the Indemnity Agreement are: 1) the value of the lost or damaged property (ACV) 2) the interest of the insured in the property (ex. financial interest, home, mortgage) 3) the amount of insurance specified on t...

1. Residential (homes) 2. Mercantile (hospital) 3. Non-mercantile (stores) 4. Manufacturing/industrial (manufacturing plants) Identify 4 categories that buildings may fall into and give an example of each 1. Scheduled basis 2. All property basis Identify two bases that coverage can be provided 1. ...

The insurance policy issued to Adanac Shoes LTD. Provides for the settlement of all losses on an actual cash value basis. Generally, this has come to be understood as the replacement cost or repair cost of lost or damaged property less any deprivation. However, the Adanac's must be advised that A...

Warranty A promise that certain facts are as they are represented to be and that they will remain so Hazard A condition which may cause a peril to occur Latent defect A hidden or concealed defect, which cannot be discovered by reasonable and customary inspection Endorsement Changes the terms or c...

Define Loading Additional rate charged over and above the fire rate. Define common carrier Includes airline, railroads, trucking companies, and others that furnish transportation to any member of the public seeking their services. Define "Bailee for Hire" One who has temporary custody of the...

Your client, a retail fashion store, has just rented a business premises in a mall. Before opening your business, she plans to install new wall to wall carpeting and install wall paneling. These values would be insured under the amount provided for: A. Stock B. Equipment C. Building D. Business Int...