CAIB 2 Exam Study Questions and Correct Answers

3 conditions or obligations that insured owed before Replacement Cost Settlement payout is issued ( Payment after, Diligence ,Site ) 1) payment is made after replacement work is completed 2) replacment work must be done in due diligence and dispatch 3) replacement must be at same site or adjacent site 6 insured duties during a crime loss ( n n 120 s oath securities ) 1) notify authority 2) notify insurer 3) prepare proof of crime loss within 120 days of discovery date 4) make statements 5) submit to examine under oath 6) if lost securities involved, must stop all sales, conversion or negotiation of such lost securities. 7 material facts in insurance application ( previous claims, cancellations, ill-will , liens on property , other concurrent insurance, vacancy , business use by insured or others ) 1) previous claims 2) previous cancellations 3) ill-will people that might harm insured property if insured knows 4) liens on property, creditors, mortgagees, other payees 5) other concurrent insurance for same insured property 6) vacancy 7) business use by insured or others 3 types of property that are covered by Transportation Floater ( Broad form ) 1) owned by insured 2) property of others which insured is responsible and legally liable 3) sold but not delivered list 5 means of transportation that can be endorsed onto Transportation Floater ( Broad form ) 1) all means of transport except ocean marine vessels 2) airlines 3) private, public trucking firms 4) vehicles leased or hired by insured 5) railroads 3 factors that affect transportation insurance premium ( property, means,distance ) 1) nature of property