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CAIB 2 Practice Exam (Latest) Questions & Answers Verified 100% Correct!!
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CAIB 2 Practice Exam (Latest) Questions & Answers Verified 100% Correct!!
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Name: Score:96 Multiple choice questions
Term 1 of 96
Identify the three areas of coverage under an Electronic Data Processing Policy (EDP):
Property that is temperature sensitive (Stock items which are temperature sensitive when
loss is caused by loss to equipment which is owned by the insured and used for
refrigerating or cooling due to an insured peril
-Monitored alarm
-Fire resistive construction
-fire protection rating
-constructed after 1945
-no basement
-sole occupant
From the time the goods have been loaded for shipment until they reach their destination
-loss to data processing system, including equipment and component part
-active data processing media, include programs
-extra expense
,Term 2 of 96
Identify the two types of Perimeter Protection.
-Collection expense in excess of normal collection cost and make necessary by such loss
or damage.
-Other expenses reasonably incurred by the insured in re-establishing records or accounts
receivable following such loss or damage
-Accounts which cannot be collected as a direct result of loss or damage to accounts
receivable records from an insured peril
indifference to loss
Poor management
-Complete protection
-Partial protection
-Standard
-Increased (Valued)
-Released
,Term 3 of 96
Identify three types of Property Protection Systems:
Identify three obligations placed upon Insureds who have installed any such systems:
-bars on windows (Steel doors and bars)
-deadbolt locks on doors (High security Locks)
-electric fences (window locks, bars and screens)
-(tempered glass, safes and vaults, showcases)
-Theft from a safe drop box at the bank (theft from a night depository safe provided by a
bank or trust company for use of its customers)
-Theft from the custodians private residence (theft from within the home of a custodian not
exceeding the limit of insurance or $500, whichever is less)
-Robbery from the custodian (actual or attempted robbery of a custodian away from the
premises while engaged in his/her duties in connection with insured property within
Canada or the US.
1. The line of business is so specialized as to not be covered the insurer's treaty with its
reinsurers
2. They type of risk is on which the insurer does not want to expose to reinsurance treaties
3. The limits do not exceed the insurer's net retention limits but are beyond what it is
prepared to pay in a single claim
-Sprinkler systems or other fire extinguishing systems
-Alarm systems fire detection systems
-intrusion detection systems
must notify insurer if contact lapsed or expired or cancelled
must notify insurer if policy service/response has been suspended
must notify insurer if any fault/defect with system
, Term 4 of 96
Identify the common exclusion to the Valuable Papers and Records Insurance and the Accounts
receivable form and why:
damage caused by extreme weather conditions
theft of physical documents by unauthorized individuals
loss due to electrical or magnetic injury, or disturbance or reinsure of electronic recording,
except by lightning, coverage is available under electric sate processing policy
injury or harm caused by animals on the premises
Term 5 of 96
Briefly explain the level of 'ordinary care' to be exercised by a bailee:
Will be paid if a local fire department requires the assistance from neighbouring fire
departments - some insurers will only provide coverage if insured is liable for such
payment
When building is vacant and unattended with no construction work completed for over 30
consecutive days ( project left unattended or when there has been no construction activity
for more than 30 consecutive days)
Ordinary care is that of which any reasonable and prudent person would provide to
property of others. (same care of the good of others as would be taken by a prudent and
diligent owners of such goods)
Property that is temperature sensitive (Stock items which are temperature sensitive when
loss is caused by loss to equipment which is owned by the insured and used for
refrigerating or cooling due to an insured peril
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