CAIB 2- Chapter 2 Test Questions and Correct Answers

An application and a submission are not the same thing. Identify three items that a submission may include: -an application -additional verbal information -additional written information, including previous policy premium, loss history and details of loses, financial statements, photographs Identify five steps of the broker's role in the underwriting process: -completion of survey -search for interested insurer -meet with client, discuss quotes and select insurer -request binding coverage from the selected insurer -review policy and deliver to client [MR. CSR] Identify three things that a Survey does * -assist in identification of loss exposures -helps to determine the coverages needed -develops other underwriting information needed by the insurer Identify three reasons for a broker to use a Commercial Property Check list -alerts brokers to possible loss exposures -ensures that needed coverages are not forgotten or ignored -helps to reduce the potential for an errors and omissions claims Identify five classes of Building Construction as identified by the IAO and briefly explain any three. 1) fire resistive - building is one which has met minimum standards in terms of hours it will withstand a specific, carefully controlled test fire. (blocked doors) 2) non-combustive - is when all structural members, including floors, roofs, and their supports are CONSTRUCTED of STEEL, IRON, concrete or other non-combustible materials. Falls just short of fire resistive. (bricks) 3) heavy timber - is quite rare and only found in existing old buildings. Floor and roof construction is wood such as a log house. (log house) 4) ordinary (concrete, wood, steel) 5) frame (wood) [hoffon