Exam (elaborations)
CAIB 2 Chapter 1 Practice Exam 1 (Qs & As) 2024
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CAIB 2 Chapter 1 Practice Exam 1 (Qs & As) 2024
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Name: Score:53 Multiple choice questions
Term 1 of 53
The premium amount kept by the insurer when the policy is terminated prior to its expiry date.
"Minimum retained premium".
"void contract."
"reinsurance."
"material fact."
Term 2 of 53
It is entitled to void the policy.
The option to increase the coverage amount.
The right an insurer has when it proves that misrepresentation has occurred.
The privilege to transfer the policy to another insurer.
The ability to cancel the policy at any time.
Term 3 of 53
(Did÷Should) x Loss = Settlement.
The parts condition.
The co-insurance clause calculation.
Why Co-insurance Clauses contain waiver provisions.
The provisions of waiver of co-insurance clauses.
,Term 4 of 53
ACV takes depreciation into consideration, whereas Replacement Cost does not.
The difference between "Replacement Cost" and "Actual Cash Value" (ACV)
The comparison between "market value" and "assessed value"
The distinction between "gross profit" and "net profit"
The relationship between "liabilities" and "equity"
Definition 5 of 53
"Subscription Policy."
Insurance of an insurer; where an insurer cedes part of the risk it has assumed to one or
more other insurers.
The insured must take all steps reasonable to recover lost or damaged property after an
insured loss.
Any loss involving a criminal act must be reported to the police or other authorities.
An insurance policy under which a group of insurers has agreed to participate together to
provide coverage.
Term 6 of 53
The insured must notify the insurer forthwith...
1) About any interruption, flaw or defect in any property protection system that comes to their
knowledge;
2) About any cancellation or non-renewal of any monitoring or maintenance to such systems;
3) When notification of suspension of police service is received regarding response to any such
system.
The requirements that must be met by the insured when a Co-Insurance Clause is replaced
with a Stated Amount Co-insurance Clause.
The True Value to the Owner approach to determine the Actual Cash Value of a building.
The three considerations used to determine an amount of indemnity.
The three requirements placed upon clients by Property Protection Systems clauses.
, Term 7 of 53
Only the property specifically listed or scheduled on the policy is insured.
Blanket coverage.
Specific coverage.
Extended coverage.
Scheduled coverage.
Term 8 of 53
The cost to repair or replace lost or damaged property, less the application of any depreciation.
The total value of An Asset After depreciation.
The market value of an item at the time of purchase.
The traditional meaning of Actual Cash Value (ACV).
The estimated cost of future repairs for damaged property.
Term 9 of 53
With the help of a qualified accountant, and especially useful when income is produced from a
dilapidated or run-down building, a capitalization factor is applied to the net annual rental
income.
Determining The Building's value based on Its Income From a run-down state.
Utilizing a qualified accountant to assess the building's dilapidated condition.
The Income Approach to determine the Actual Cash Value of a building.
Applying A Capitalization factor to determine The Building's Net annual rental income.
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