CAIB 2 STUDY SET WITH QUESTIONS AND CORRECT ANSWERS

1. Residential (homes) 2. Mercantile (hospital) 3. Non-mercantile (stores) 4. Manufacturing/industrial (manufacturing plants) Identify 4 categories that buildings may fall into and give an example of each 1. Scheduled basis 2. All property basis Identify two bases that coverage can be provided 1. Scheduled basis - only property which is specifically identified or scheduled on the policy is insured 2. All property - All property owned by the insured is covered by a single limit of insurance. Usually subject to a minimum 90% co-insurance clause Briefly explain how the scheduled basis and all property is identified 1. Fixed structures; pertaining to the business and located on the property (fencing, yard signs, lights) 2. Additions and extensions; in contact with the building (enclosed walkways, lean-to storage) 3. Permanent fittings & fixtures attached to or forming part of the building (heating, plumbing, carpeting) 4. Materials, equipment, supplies used for maintenance 5. Growing plants, trees, shrubs, flowers; inside the insureds building for decorative purposes when insured is owner Identify and give an example of each of the five types of property contained in the definition of building found in the IBC Commercial Property Broad Form 1. Such property was inside the building 2. It was being used for decorative purposes 3. The insured was the owner of the building Identify the three conditions pertaining to the coverage of growing plants, trees, etc 1. Merchandise of every description usual to the insureds business; goods held for sale 2. Packing, wrapping, & advertising materials; bubble wrap, flyers or catalogues 3. Similar property belonging to others which the insured is under obligation to keep insured or which he is legally liable; consignment goods or tv repair shop Identify and give an example of each of the three types of property contained in the definition of Stock found in the IBC Commercial Property Broad Form