CAIB 2 Chapter 4 Practice Test 1 Bank Completely Solved
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Course
CAIB 2
Institution
CAIB 2
Define Endorsement. - ANSWER-Endorsements change terms of existing policies
Define Rider. - ANSWER-Riders add coverages to those all ready on policy
Indicate Covered or Not Covered on Sign Form (C/NC)
a) mechanical breakdown
b) damage caused by power surge
c) damage caused when dropped d...
CAIB 2 Chapter 4 Practice Test 1 Bank
Completely Solved
Define Endorsement. - ANSWER-Endorsements change terms of existing policies
Define Rider. - ANSWER-Riders add coverages to those all ready on policy
Indicate Covered or Not Covered on Sign Form (C/NC)
a) mechanical breakdown
b) damage caused by power surge
c) damage caused when dropped during installation
d) damage caused by freezing
e) damage caused by striking employees - ANSWER-a) NC mechanical breakdown
b) NC damage caused by power surge
c) NC damage caused when dropped during installation
d) NC damage caused by freezing
e) NC damage caused by striking employees
What values are insured on a Glass Rider? - ANSWER-i) Glass
ii) Artwork on glass
iii) Tape and foil on glass
When would tenants require Glass Riders? - ANSWER-Tenants may require glass
coverage when tenants have assumed responsibility for
damage to glass in a lease
What type of information is required by underwriters when insuring glass on a
scheduled basis? - ANSWER-i) Type, size and number of glass units
ii) Location of glass
iii) Information of any lettering, tape, foil or ornamentation
What are two factors, relating to location, which may influence Glass Rider
premiums? - ANSWER-i) Interior or exterior
ii) Level located on building (ie. first floor or second floor)
List three examples of losses insured by Glass Riders. - ANSWER-i) Employee breaks
glass while carrying lumber into store
ii) Customer breaks glass with floor lamp they just purchased, while leaving the
store
iii) Glass breaks as a result of settling of building's foundation
Indicate Covered or Not Covered under Glass Riders. (C/NC)
, a) glass broken during construction
b) glass broken during repairs to window frame
c) glass damage when building is vacant, unoccupied or shut down
for more than 30 consecutive days - ANSWER-a) NC glass broken during construction
b) NC glass broken during repairs to window frame
c) NC glass damage when building is vacant, unoccupied or shut down
for more than 30 consecutive days
What are four coverages provided by the Accounts Receivable Form and provide
an example of each. - ANSWER-i) Amounts which cannot be collected due to loss of
accounts receivable records
example: Client cannot remember entire list of customers who have an
outstanding amount due to your client
ii) Interest on loans or lines of credit your client needs to utilize to pay current
liabilities
example: Money owed to suppliers must be paid prior to settlement with insurer
iii) Extra costs in the collection of accounts receivable
example: Amounts paid to collection agencies or overtime wages to staff who
work overtime attempting to collect accounts
iv) Expenses incurred in the reconstruction of records
example: Client hires accounting firm to reconstruct records
What is the requirement of insurers when accounts receivable records are not in
use and the premises are closed? - ANSWER-When records are not in use or when
premises is closed, accounts receivable
records must be stored in described receptacle
What are two factors which will influence premiums to be charged on Accounts
Receivable coverage? - ANSWER-i) Availability of duplicates
ii) Quality of described receptacle
What are two factors which will influence premiums to be charged on Valuable
Papers and Records coverage? - ANSWER-i) Availability of duplicates
ii) Quality of described receptacle
When can coverage be extended to insure Valuable Papers and Records while off
premises? - ANSWER-i) When being transported outside premises
ii) When at other premises on a temporary basis
What limit of coverage is available to insure Valuable Papers and Records while
off premises? - ANSWER-10% of amount of insurance or $5,000 whichever is less
What type of electrical disturbance is insured by Valuable Papers and Records
Insurance? - ANSWER-When electrical disturbance caused by lightning damages
valuable papers,
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