CAIB 2 Chapter 4 Practice Test 1 Questions 100% Correct!
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Course
CAIB 2
Institution
CAIB 2
Define Endorsement. - ANSWEREndorsements change terms of existing policies
Define Rider. - ANSWERRiders 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 dur...
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? - ANSWERi) Glass
ii) Artwork on glass
iii) Tape and foil on glass
When would tenants require Glass Riders? - ANSWERTenants 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? - ANSWERi) Type, size and number of glass units
, ii) Location of glass
iii) Information of any lettering, tape, foil or ornamentation
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 - ANSWERa) 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. - ANSWERi) 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? - ANSWERWhen records are not in use or when premises is closed,
accounts receivable
records must be stored in described receptacle
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