Exam (elaborations)
CAIB 3 Exam - Questions & Correct Answers
- Course
- Institution
CAIB 3 Exam - Questions & Correct Answers
[Show more]
Seller
Follow
LeCrae
Reviews received
Content preview
CAIB 3 Exam - Questions & Correct AnswersOutline the purpose of the OPCF 44 Endorsement and indicate how it affects
the amount of insurance available to the insured. ✔️Ans - To increase the
TP limits available to victims to the same limits as purchased under their own
Policy. Insured can avail the difference between TP Limit of his own Policy &
the TP limit of the at-fault 3rd Party.
Outline the purpose of the OPCF 20 Endorsement ✔️Ans - To recover
Expenses incurred on -
a) rental of substitute automobile
b) Taxicabs or public means of transportation
When your client has $1M in TPL and gets into an accident with a third party
who carrier $200,000 in TPL. How much will this allow her policy to pay out
for a max loss of $1M ✔️Ans - $800,000
Most rental agencies attempt to sell Sally the full range of automobile
insurance coverages. Identify the two (2) coverages provided by all insurance
policies which extend rental automobiles. ✔️Ans - Third Party Liability and
Accident Benefits
When automobiles owned by the insured's employee are used in the business,
the employer has a non-owned automobile liability exposure. Indicate the
automobile insurance policy which can be purchased by employers to insure
this exposure. And name another method of providing this coverage to
business owners. ✔️Ans - SPF6 Non-Owned Auto Liability and a CGL policy
is an alternative.
Covered or Not Covered Under the OAP1: Automobile is being used to
transport tourists on local tours ✔️Ans - Not Covered: Sight seeing
conveyance is excluded.
Covered or Not Covered Under the OAP1: Automobile is being used transport
prospective buyers to real estate development located 30 kms. From the
insured's office. ✔️Ans - Covered: Carriage of clients or prospective clients
is ok.
, Covered or Not Covered Under the OAP1: Automobile is used car pool in
which all persons involved take regular turns providing
transportation. ✔️Ans - Covered: Car pool permitted.
Covered or Not Covered Under the OAP1: Automobile is used occasionally to
drive members of daughter's high school hockey team to games or
tournaments. The insured receives $2.5/Km as a transportation allowance
from the school. ✔️Ans - Covered: Occasional & infrequent use permitted
Each time Iona rents a car, the rental agency attempts to sell her insurance to
cover the period of the rental. Iona has asked you whether the policy on her
own automobile would respond to
pay for any claims arising out of the use of a rented automobile. Identify 2
coverages provided under Iona's own policy which automatically extend to
rented automobiles and which, therefore, do not need to be purchased from
the rental agency. ✔️Ans - Third Party Liability and Accident Benefits
When automobiles owned by the insured's employees are used in the
business, the employer has a non-owned automobile liability exposure. While
the policy which can be purchased by employers to insure this exposure can
be provided on a standalone basis, it is not normally done in this way. Explain
the usual manner in which this coverage is provided to business owners.
✔️Ans - CGL Policy or CGL Policy Endorsement
Provide 2 examples of automobiles that fall within the definition of "Non-
Owned Automobiles" under the Policy. ✔️Ans - Vehicles owned by
employees or hired vehicles.
State the common law rule that outlines the reason why the owner of the local
Pizza-to-go franchise would be a good candidate for Non-Owned Auto
coverage. ✔️Ans - Employers are responsible for the torts committed by
their Employees.
SPF4 Covered or Not Covered: BI caused to Pedestrian at a crosswalk by
insured's employee who is test driving a customers' automobile to determine
the adequacy of repairs made by the garage. ✔️Ans - Covered: Non-owned
Autos include Customer's vehicles which are used for test driving.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller LeCrae. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
81531 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now