CAIB 2 - QUESTIONS AND ANSWERS |
2026 UPDATE | WITH COMPLETE
SOLUTIONS.
Scheduled Coverage - ANSWERS-refers to policy on which coverage is
provided only on that property which is specifically identified or scheduled.
All Property - ANSWERS-refers to policy used to insure building, stock and
equipment under a single limit of insurance.
Tenants Improvements - ANSWERS-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 - ANSWERS-the replacement or repair cost less
depreciation
Replacement value - ANSWERS-represents the costs to repair, replace or
rebuild the lost or damaged property without deduction for depreciation
Reinsurance - ANSWERS-involves an Insurer ceding part of the risk it has
assumed to one or more other insurers.
Subscription - ANSWERS-an insurance policy under which a group of Insurers
has agreed to participate in providing policy insurance coverages.
Condition - ANSWERS-is something imposed by the Insurer which requires
the Insured to do or not to do something.
, Subrogation - ANSWERS-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 - ANSWERS-is a promise that certain facts are as they are
represented to be and that they will remain so.
Material fact - ANSWERS-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 - ANSWERS-to act wilfully, and with the specific intent to deceive
or cheat
Void contract - ANSWERS-a void contract is one which has no "legal or
binding force" and as such, "is incapable of being enforced by law."
Fire resistive - ANSWERS-building which has met minimum standards in
terms of hours it will withstand a specific, carefully controlled test fire.
Non-combustible - ANSWERS-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 - ANSWERS-conditions common to all buildings which
influence their potential for loss.
Detachment - ANSWERS-refers to the proximity of the building insured or
containing the property insured to other commercially rated buildings.
2026 UPDATE | WITH COMPLETE
SOLUTIONS.
Scheduled Coverage - ANSWERS-refers to policy on which coverage is
provided only on that property which is specifically identified or scheduled.
All Property - ANSWERS-refers to policy used to insure building, stock and
equipment under a single limit of insurance.
Tenants Improvements - ANSWERS-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 - ANSWERS-the replacement or repair cost less
depreciation
Replacement value - ANSWERS-represents the costs to repair, replace or
rebuild the lost or damaged property without deduction for depreciation
Reinsurance - ANSWERS-involves an Insurer ceding part of the risk it has
assumed to one or more other insurers.
Subscription - ANSWERS-an insurance policy under which a group of Insurers
has agreed to participate in providing policy insurance coverages.
Condition - ANSWERS-is something imposed by the Insurer which requires
the Insured to do or not to do something.
, Subrogation - ANSWERS-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 - ANSWERS-is a promise that certain facts are as they are
represented to be and that they will remain so.
Material fact - ANSWERS-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 - ANSWERS-to act wilfully, and with the specific intent to deceive
or cheat
Void contract - ANSWERS-a void contract is one which has no "legal or
binding force" and as such, "is incapable of being enforced by law."
Fire resistive - ANSWERS-building which has met minimum standards in
terms of hours it will withstand a specific, carefully controlled test fire.
Non-combustible - ANSWERS-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 - ANSWERS-conditions common to all buildings which
influence their potential for loss.
Detachment - ANSWERS-refers to the proximity of the building insured or
containing the property insured to other commercially rated buildings.
