CAIB 3 Chapter 2 Exam Questions With
Correct Answers
Identify the five mounting losses of liability insurers of the 1980's -
| | | | | | | | | | | |
ANSWER✔✔✔-1. Disproportionately high court awards in the USA | | | | | | |
2. Environmental Disasters
| |
3. Aviation Disasters
| |
4. Inadequate assessment of potentially dangerous risks
| | | | | |
5. Latent bodily injury claims
| | | |
Identify the five sections of the IBC 2100 - ANSWER✔✔✔-1. Coverages
| | | | | | | | | | |
(A,B,C,D)
2. Who is an insured
| | | |
3. Limits of insurance
| | |
4. Commercial General Liability conditions
| | | |
5. Definitions
|
Identify the four coverages of Section 1 of the IBC 2100 -
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ANSWER✔✔✔-A. Bodily injury & Property Damage Liability | | | | | |
B. Personal Injury & Advertising injury Liability
| | | | | |
C. Medical Payments
| |
,D. Tenants Legal Liability
| | |
Identify the eight key features of Insuring Agreement 1 - ANSWER✔✔✔-
| | | | | | | | | |
1. Coverage provided for bodily injury and property damage only
| | | | | | | | |
2. Payment made only for 'those sums that the insured becomes legally
| | | | | | | | | | | |
obligated to pay' | | |
3. Insurer liable for payment of compensatory damages only
| | | | | | | |
4. Coverage is provided only for losses which occur during the policy
| | | | | | | | | | | |
period |
5. Injury or damage must be caused by an occurrence
| | | | | | | | |
6. Loss or damage must take place in the coverage territory
| | | | | | | | | | |
7. Insurer's right and duty to defend any action
| | | | | | | |
8. Insurer reserves the right to
| | | | | |
| a) investigate any claim and
| | | | |
| b) settle any claim or action as its discretion
| | | | | | | |
Identify the three terms contained in the definition of Bodily Injury -
| | | | | | | | | | | |
ANSWER✔✔✔-1. Bodily Injury | | |
2. Sickness or disease
| | |
3. Death
|
, Explain the two key coverages included under the definition of Property
| | | | | | | | | | |
Damage - ANSWER✔✔✔-1. Physical injury to tangible property,
| | | | | | | |
including all resulting loss of use of that property
| | | | | | | |
2. Loss of use of tangible property that is not physically damaged
| | | | | | | | | | |
Identify who decides 'those sums that the insured becomes legally
| | | | | | | | | |
obligated to pay' - ANSWER✔✔✔-The courts
| | | | |
Identify the three types of liability that may be faced by business
| | | | | | | | | | | |
owners - ANSWER✔✔✔-1. Tort Liability
| | | |
2. Certain Contractual Liabilities
| | | |
3. Statutory Liability
| |
Explain what is meant by Compensatory Damages - ANSWER✔✔✔-
| | | | | | | |
These damages are intended to attach, as nearly as possible, a dollar
| | | | | | | | | | | |
value to the injury or damage for which the insured is legally obligated
| | | | | | | | | | | |
Identify which policy would respond to a claim for bodily injury that
| | | | | | | | | | | |
occurred 10 years ago - ANSWER✔✔✔-The policy that was in effect 10
| | | | | | | | | | | |
years ago
|
Define Occurrence - ANSWER✔✔✔-Means an accident, including
| | | | | | |
continuous or repeated exposure to substantially the same general
| | | | | | | | |
harmful conditions |
Correct Answers
Identify the five mounting losses of liability insurers of the 1980's -
| | | | | | | | | | | |
ANSWER✔✔✔-1. Disproportionately high court awards in the USA | | | | | | |
2. Environmental Disasters
| |
3. Aviation Disasters
| |
4. Inadequate assessment of potentially dangerous risks
| | | | | |
5. Latent bodily injury claims
| | | |
Identify the five sections of the IBC 2100 - ANSWER✔✔✔-1. Coverages
| | | | | | | | | | |
(A,B,C,D)
2. Who is an insured
| | | |
3. Limits of insurance
| | |
4. Commercial General Liability conditions
| | | |
5. Definitions
|
Identify the four coverages of Section 1 of the IBC 2100 -
| | | | | | | | | | | |
ANSWER✔✔✔-A. Bodily injury & Property Damage Liability | | | | | |
B. Personal Injury & Advertising injury Liability
| | | | | |
C. Medical Payments
| |
,D. Tenants Legal Liability
| | |
Identify the eight key features of Insuring Agreement 1 - ANSWER✔✔✔-
| | | | | | | | | |
1. Coverage provided for bodily injury and property damage only
| | | | | | | | |
2. Payment made only for 'those sums that the insured becomes legally
| | | | | | | | | | | |
obligated to pay' | | |
3. Insurer liable for payment of compensatory damages only
| | | | | | | |
4. Coverage is provided only for losses which occur during the policy
| | | | | | | | | | | |
period |
5. Injury or damage must be caused by an occurrence
| | | | | | | | |
6. Loss or damage must take place in the coverage territory
| | | | | | | | | | |
7. Insurer's right and duty to defend any action
| | | | | | | |
8. Insurer reserves the right to
| | | | | |
| a) investigate any claim and
| | | | |
| b) settle any claim or action as its discretion
| | | | | | | |
Identify the three terms contained in the definition of Bodily Injury -
| | | | | | | | | | | |
ANSWER✔✔✔-1. Bodily Injury | | |
2. Sickness or disease
| | |
3. Death
|
, Explain the two key coverages included under the definition of Property
| | | | | | | | | | |
Damage - ANSWER✔✔✔-1. Physical injury to tangible property,
| | | | | | | |
including all resulting loss of use of that property
| | | | | | | |
2. Loss of use of tangible property that is not physically damaged
| | | | | | | | | | |
Identify who decides 'those sums that the insured becomes legally
| | | | | | | | | |
obligated to pay' - ANSWER✔✔✔-The courts
| | | | |
Identify the three types of liability that may be faced by business
| | | | | | | | | | | |
owners - ANSWER✔✔✔-1. Tort Liability
| | | |
2. Certain Contractual Liabilities
| | | |
3. Statutory Liability
| |
Explain what is meant by Compensatory Damages - ANSWER✔✔✔-
| | | | | | | |
These damages are intended to attach, as nearly as possible, a dollar
| | | | | | | | | | | |
value to the injury or damage for which the insured is legally obligated
| | | | | | | | | | | |
Identify which policy would respond to a claim for bodily injury that
| | | | | | | | | | | |
occurred 10 years ago - ANSWER✔✔✔-The policy that was in effect 10
| | | | | | | | | | | |
years ago
|
Define Occurrence - ANSWER✔✔✔-Means an accident, including
| | | | | | |
continuous or repeated exposure to substantially the same general
| | | | | | | | |
harmful conditions |
