CAIB 2 FINAL EXAM
Justin case owns and operates a flower and gift shop in the downtown
business district. Building, stock and equipment values are insured
under the commercial building, equipment and stock - broad form
policy. Indicate whether the losses caused by the following perils
would be covered by the policy. State whether covered or not covered.
A) breakdown of compressor motor on main refrigeration unit.
B) loss to stock and equipment caused by explosion of steam boiler
on the premises
C) damage to building from seepage of ground water through
basement walls. - ANSWERS-A) breakdown of compressor motor on
main refrigeration unit. - not covered.
B) loss to stock and equipment caused by explosion of steam boiler
on premises - covered
C) damage to building from seepage of ground water through
basement walls - not covered.
Both the owner and carrier have a financial interest in property while
in transit. What two factors should be considered in determining who
should purchase coverage on a particular shipment? - ANSWERS-1.
, Whether the owner or the carrier would be responsible for the loss of
the property.
2. To what extent they would be responsible.
How do common carriers limit the amount of their liability to the
owners of the property? - ANSWERS-Bills of lading are used to limit
liability of common carriers.
Common carriers are liable to owners for the safe delivery of goods
entrusted to them. Provide two exceptions to this general rule. -
ANSWERS-1. Acts of god reasonably foreseeable.
2. Neglect or default of the shipper.
Not everyone is qualified to be a custodian. Identify 2 persons who
would qualify as custodians of insured property. - ANSWERS-1.
Insured or their partners.
2. Employees authorized to have possession of insured property.
What is the period of indemnity provided under the gross earnings
endorsement form (manufacturing or non manufacturing?) -
ANSWERS-Period of indemnity with gross earnings form begins
with date of destruction of damage and ends as soon as damaged
property is restored.
Define Loading - ANSWERS-Additional rate charged over and above
the fire rate.
Justin case owns and operates a flower and gift shop in the downtown
business district. Building, stock and equipment values are insured
under the commercial building, equipment and stock - broad form
policy. Indicate whether the losses caused by the following perils
would be covered by the policy. State whether covered or not covered.
A) breakdown of compressor motor on main refrigeration unit.
B) loss to stock and equipment caused by explosion of steam boiler
on the premises
C) damage to building from seepage of ground water through
basement walls. - ANSWERS-A) breakdown of compressor motor on
main refrigeration unit. - not covered.
B) loss to stock and equipment caused by explosion of steam boiler
on premises - covered
C) damage to building from seepage of ground water through
basement walls - not covered.
Both the owner and carrier have a financial interest in property while
in transit. What two factors should be considered in determining who
should purchase coverage on a particular shipment? - ANSWERS-1.
, Whether the owner or the carrier would be responsible for the loss of
the property.
2. To what extent they would be responsible.
How do common carriers limit the amount of their liability to the
owners of the property? - ANSWERS-Bills of lading are used to limit
liability of common carriers.
Common carriers are liable to owners for the safe delivery of goods
entrusted to them. Provide two exceptions to this general rule. -
ANSWERS-1. Acts of god reasonably foreseeable.
2. Neglect or default of the shipper.
Not everyone is qualified to be a custodian. Identify 2 persons who
would qualify as custodians of insured property. - ANSWERS-1.
Insured or their partners.
2. Employees authorized to have possession of insured property.
What is the period of indemnity provided under the gross earnings
endorsement form (manufacturing or non manufacturing?) -
ANSWERS-Period of indemnity with gross earnings form begins
with date of destruction of damage and ends as soon as damaged
property is restored.
Define Loading - ANSWERS-Additional rate charged over and above
the fire rate.
