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CAIB 2 EXAM NEWEST LATEST 2026-2027 ACTUAL EXAM
WITH COMPLETE QUESTIONS AND CORRECT DETAILED
ANSWERS (100% VERIFIED ANSWERS) |ALREADY GRADED
A+| ||PROFESSOR VERIFIED|| ||BRANDNEW!!!||
Identify two characteristics shared by all subscription policies -
ANSWER-1. Participating insurers share both the premium and
the losses
2. Each agreement is usually required to be negotiated separate
Identify the three amounts to be considered when calculating the
amount of payment as outlined in the indemnity agreement?
Which one is payable - ANSWER-1. The value of the lost or
damaged property as determined in clause 15
2. The interest of the insured in the property
3. The amount of insurance specified on the declaration page for
damaged property
What is the co-insurance formula - ANSWER-Did/Should x loss =
settlement
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In order to replace a co-insurance clause with a stated amount
co-insurance clause, the client must comply with the following -
ANSWER-1. Files a statement of values with the insurer
representing 100% of the value of all property insured, as verified
by appraisal or other means
2. Maintains those values throughout the term of the policy
Identify the two types of exclusions found in property policies: -
ANSWER-1. Property Excluded
2. Perils excluded
Identify five reasons why exclusions exist - ANSWER-1. to
exclude losses which are generally considered by insurers to be
commercially uninsurable
2. to exclude losses which have within the the potential to be
catastrophic
3. to exclude losses for which more specialized policy forms have
been developed
4. to exclude losses that are wholly or partly in the control of the
insured or which can be expected
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5. To exclude losses which are not common to a large number of
insured but which represents an increased potential for loss which
is deserving of an additional premium
Identify the purpose of the deductible - ANSWER-To eliminate
minor maintenance types of claims, and to reduce moral hazard
by making Insureds participate in their losses
Give an example for each reason why the five reasons for
exclusions exists - ANSWER-1. Deliberate acts of violence (war
rebellion revolution)
2. Earthquake, snowslides
3. Automobiles and aircrafts, business records
4. Application of heat or other process, marring scratching or
crushing
5. Outside communication towers, antennae and attached
equipment
Identify three permissions allowed in a commercial policy -
ANSWER-1. for other insurance concurrent with this form
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2. To make alterations, additions or repairs
3. to do such work and keep and use such articles, materials and
supplies in such quantities as are usual or necessary for the
insureds business
What may an Insurer do when there has been a Breach of
Conditions in the policy - ANSWER-Grounds to deny coverages in
the case of a loss
Identify two instances when an insurer may not deny coverages
when there has been a breach in the contract - ANSWER-1. The
loss was not caused or contributed by the breach
2. The breach for condition occured in a portion of the premises
over which the insured has no control
What is subrogation? - ANSWER-An insurer's legal right to seek
damages from third parties after reimbursing insureds for a loss
Identify three types of property protection systems - ANSWER-1.
Sprinkler or other fire extinguishing system
CAIB 2 EXAM NEWEST LATEST 2026-2027 ACTUAL EXAM
WITH COMPLETE QUESTIONS AND CORRECT DETAILED
ANSWERS (100% VERIFIED ANSWERS) |ALREADY GRADED
A+| ||PROFESSOR VERIFIED|| ||BRANDNEW!!!||
Identify two characteristics shared by all subscription policies -
ANSWER-1. Participating insurers share both the premium and
the losses
2. Each agreement is usually required to be negotiated separate
Identify the three amounts to be considered when calculating the
amount of payment as outlined in the indemnity agreement?
Which one is payable - ANSWER-1. The value of the lost or
damaged property as determined in clause 15
2. The interest of the insured in the property
3. The amount of insurance specified on the declaration page for
damaged property
What is the co-insurance formula - ANSWER-Did/Should x loss =
settlement
,2|Page
In order to replace a co-insurance clause with a stated amount
co-insurance clause, the client must comply with the following -
ANSWER-1. Files a statement of values with the insurer
representing 100% of the value of all property insured, as verified
by appraisal or other means
2. Maintains those values throughout the term of the policy
Identify the two types of exclusions found in property policies: -
ANSWER-1. Property Excluded
2. Perils excluded
Identify five reasons why exclusions exist - ANSWER-1. to
exclude losses which are generally considered by insurers to be
commercially uninsurable
2. to exclude losses which have within the the potential to be
catastrophic
3. to exclude losses for which more specialized policy forms have
been developed
4. to exclude losses that are wholly or partly in the control of the
insured or which can be expected
,3|Page
5. To exclude losses which are not common to a large number of
insured but which represents an increased potential for loss which
is deserving of an additional premium
Identify the purpose of the deductible - ANSWER-To eliminate
minor maintenance types of claims, and to reduce moral hazard
by making Insureds participate in their losses
Give an example for each reason why the five reasons for
exclusions exists - ANSWER-1. Deliberate acts of violence (war
rebellion revolution)
2. Earthquake, snowslides
3. Automobiles and aircrafts, business records
4. Application of heat or other process, marring scratching or
crushing
5. Outside communication towers, antennae and attached
equipment
Identify three permissions allowed in a commercial policy -
ANSWER-1. for other insurance concurrent with this form
, 4|Page
2. To make alterations, additions or repairs
3. to do such work and keep and use such articles, materials and
supplies in such quantities as are usual or necessary for the
insureds business
What may an Insurer do when there has been a Breach of
Conditions in the policy - ANSWER-Grounds to deny coverages in
the case of a loss
Identify two instances when an insurer may not deny coverages
when there has been a breach in the contract - ANSWER-1. The
loss was not caused or contributed by the breach
2. The breach for condition occured in a portion of the premises
over which the insured has no control
What is subrogation? - ANSWER-An insurer's legal right to seek
damages from third parties after reimbursing insureds for a loss
Identify three types of property protection systems - ANSWER-1.
Sprinkler or other fire extinguishing system
