CAIB 2 Chapter 4 Practice Test 1 Questions and Correct Answers

Define Endorsement. Endorsements change terms of existing policies Define Rider. Riders add coverages to those all ready on policy Indicate Covered or Not Covered on Sign Form (C/NC) a) mechanical breakdown b) damage caused by power surge c) damage caused when dropped during installation d) damage caused by freezing e) damage caused by striking employees a) NC mechanical breakdown b) NC damage caused by power surge c) NC damage caused when dropped during installation d) NC damage caused by freezing e) NC damage caused by striking employees What values are insured on a Glass Rider? i) Glass ii) Artwork on glass iii) Tape and foil on glass When would tenants require Glass Riders? Tenants may require glass coverage when tenants have assumed responsibility for damage to glass in a lease What type of information is required by underwriters when insuring glass on a scheduled basis? i) Type, size and number of glass units ii) Location of glass iii) Information of any lettering, tape, foil or ornamentation What are two factors, relating to location, which may influence Glass Rider premiums? i) Interior or exterior ii) Level located on building (ie. first floor or second floor) List three examples of losses insured by Glass Riders. i) Employee breaks glass while carrying lumber into store ii) Customer breaks glass with floor lamp they just purchased, while leaving the store iii) Glass breaks as a result of settling of building's foundation Indicate Covered or Not Covered under Glass Riders. (C/NC)