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Practice Exam for CAIB 1 Questions With 100% Correct Answers.
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Practice Exam for CAIB 1 Questions With 100% Correct Answers.
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Name: Score:38 Multiple choice questions
Definition 1 of 38
Dwelling Building and Personal Property, Major Outbuildings and Contents, Machinery and
Equipment, General Liability
Identify the three elements that are unique to contracts of insurance:
Indicate the coverage provided for Emergency Removal Expense under the Mobile
Homeowners Form.
Identify two (2) other coverages included under C - Personal Property, which are not found
in a Homeowners policy
Identify the coverages provided under a farm insurance policy.
Definition 2 of 38
Designed by insurers to avoid paying the full amount of insurance on outbuildings when they are
not replaced after a loss.
The definition of "Persons Insured" under this section includes all those stated in Section I,
but extends to include a number of other individuals. Identify one other individual deemed
to be an Insured in respect to Liability.
Coverage for farm outbuildings is subject to the Deferred Loss Settlement Clause. Explain
why insurers have included this clause in the policy
The General Liability covered under the farm insurance policy includes a number of
different features. What is the coverage territory under the General Liability coverage?
The definition of "Persons Insured" is extended to include employees of the Named
Insured. Explain the meaning of "employee", and the types of employees insured.
,Term 3 of 38
A mistake that causes financial loss to either a client or an insurer can result in an Errors and
Omissions claim. It is important for brokers to control this exposure. Indicate the measures aimed
at preventing or controlling errors and omissions.
Coverages A to D are combined into one single limit. The advantage is that this approach
eliminates the coverage restriction otherwise applicable to Coverages B, C and D.
Those which serve to prevent losses from occurring; and those which will assist in the
defence against an error and omissions claim if and when it does occur.
The amount of coverage is the compulsory minimum limit for bodily injury applicable in the
jurisdiction in which the accident occurred, which is $200,000 except in Quebec and Nova
Scotia.
Yes, co-insurance applies to major outbuildings and contents. The minimum requirement is
80%, or 90% when coverage is on an "all risks" basis. Partial loss: Did/Should x Loss =
Settlement
Term 4 of 38
Explain the extent to which the provincial plan would respond to pay expenses if a medical
emergency incurred outside Canada.
Partial coverage. only a portion of the expenses being covered by the provincial plan.
Full reimbursement. receiving back all expenses incurred, no matter the circumstances.
No coverage. the provincial plan does not provide any financial assistance for medical
emergencies outside canada.
The prescribed fee in their plan, regardless of the fees charged where the injury or illness
occurred, or any other costs incurred.
, Term 5 of 38
What is the basis of claim payment for loss or damage to the mobile home, detached private
structures and personal property under a Mobile Homeowners Policy?
The basis of claim is Actual Cash Value; payment for loss or damage to personal property is
made on the same basis as under Homeowners Forms.
The Principle of Indemnity. The analysis is based on lowest value after calculating: ACV,
interest of the insured in the property, the limit of insurance provided
Those which serve to prevent losses from occurring; and those which will assist in the
defence against an error and omissions claim if and when it does occur.
The amount of coverage is the compulsory minimum limit for bodily injury applicable in the
jurisdiction in which the accident occurred, which is $200,000 except in Quebec and Nova
Scotia.
Definition 6 of 38
When changes are made, the insured must notify the insurer within 90 days of start of work
Your client's home is insured under a Homeowner's Comprehensive Form. The dwelling is
insured on a Guaranteed Replacement Basis. What obligation does the insured have to the
insurer when improvements, extensions, or additions have been made to the dwelling?
Insureds that are engaged in farming and derive an income from such operations must
purchase a farm insurance policy. Does the policy include a co-insurance clause? If so,
what type of property does the co-insurance apply to and the minimum requirements
imposed under the policy.
Your client's home is insured under a Homeowner's Comprehensive Form. The dwelling is
insured on a Guaranteed Replacement Basis. Briefly state the guarantee provided by this
endorsement.
A mistake that causes financial loss to either a client or an insurer can result in an Errors and
Omissions claim. It is important for brokers to control this exposure. Indicate the measures
aimed at preventing or controlling errors and omissions.
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