CAIB 2 - exam 2023/2024 with 100% correct
answers
Scheduled Coverage - CORRECT ANSWER refers to policy on which
coverage is provided only on that property which is specifically
identified or scheduled.
All Property - CORRECT ANSWER refers to policy used to insure building,
stock and equip...
Scheduled Coverage - CORRECT ANSWER refers to policy on which
coverage is provided only on that property which is specifically
identified or scheduled.
All Property - CORRECT ANSWER refers to policy used to insure building,
stock and equipment under a single limit of insurance.
Tenants Improvements - CORRECT ANSWER building improvements,
alterations and betterments made at the expense of or purchased by
the insured to a building occupied by the insured and which are not
otherwise insured, provided the insured is not the actual owner of
such building
Actual cash value - CORRECT ANSWER the replacement or repair cost
less depreciation
Replacement value - CORRECT ANSWER represents the costs to repair,
replace or rebuild the lost or damaged property without deduction for
depreciation
Reinsurance - CORRECT ANSWER involves an Insurer ceding part of the
risk it has assumed to one or more other insurers.
Subscription - CORRECT ANSWER an insurance policy under which a
group of Insurers has agreed to participate in providing policy
insurance coverages.
Condition - CORRECT ANSWER is something imposed by the Insurer
which requires the Insured to do or not to do something.
,Subrogation - CORRECT ANSWER refers to the right of the Insurer to
"step into the shoes" of the party whom it has compensated and sue
any party whom the compensated party could have sued.
Warranty - CORRECT ANSWER is a promise that certain facts are as they
are represented to be and that they will remain so.
Material fact - CORRECT ANSWER a fact which if communicated to the
Insurer would induce it either to decline the insurance altogether, or
not accept it unless a higher premium is paid.
Fraudulent - CORRECT ANSWER to act wilfully, and with the specific
intent to deceive or cheat
Void contract - CORRECT ANSWER a void contract is one which has no
"legal or binding force" and as such, "is incapable of being enforced by
law."
Fire resistive - CORRECT ANSWER building which has met minimum
standards in terms of hours it will withstand a specific, carefully
controlled test fire.
Non-combustible - CORRECT ANSWER all structural members including
floors, roofs and their supports are constructed of steel, iron, concrete
or other non-combustible materials. Exterior also required to be of non-
combustible construction. Falls just short of classifying as fire
resistive.
Common hazards - CORRECT ANSWER conditions common to all
buildings which influence their potential for loss.
Detachment - CORRECT ANSWER refers to the proximity of the building
insured or containing the property insured to other commercially rated
buildings.
Adverse selection - CORRECT ANSWER occurs when the applicants for
insurance are largely those most likely to suffer a loss.
, Risk classification - CORRECT ANSWER refers to the grouping or
classifying of risks according to established criteria which, in large
part, is based on their probability for loss as a class.
Soft market - CORRECT ANSWER characterized by intense competition
between insurers. As a result, rates tend to be low.
Hard market - CORRECT ANSWER occurs when low profit margins force
out some of the competition. As a result, insurers use a more
disciplined underwriting approach. The insured normally receives little
or nothing in the way of rate discounts.
Hazard - CORRECT ANSWER is a condition which may cause a peril to
occur.
Physical hazard - CORRECT ANSWER a condition relating to the use of
tangible property which could cause a peril to occur.
Moral hazard - CORRECT ANSWER subjective characteristics of the
applicant that could cause a peril to occur.
Morale hazard - CORRECT ANSWER deal with the attitude of the client
Accommodation business - CORRECT ANSWER business which is
marginal or substandard but which the insurer agrees to accept as a
favour or accommodation to the broker.
Supporting business - CORRECT ANSWER the existence of other
insurance policies the applicant has with the same insurer.
Vacant - CORRECT ANSWER empty"; or - when the normal occupant is
absent and the contents have been removed.
Unoccupied - CORRECT ANSWER lack of habitual presence of human
beings; or - when premises are complete with its contents, except that
such person who normally occupies the premises is temporarily away.
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