CAIB 2 Study Guide with Questions and Complete Solutions

Your client, a retail fashion store, has just rented a business premises in a mall. Before opening your business, she plans to install new wall to wall carpeting and install wall paneling. These values would be insured under the amount provided for: A. Stock B. Equipment C. Building D. Business Interruption B. Equipment While the law permits the insurer to surrogate against the party responsible for the loss, the insurer agrees not to exercise that right in respect to certain parties under the policy. Which of the following parties would be surrogates agains in the event of their responsibility? A. insureds business partner B. Mortgagee C. Parents who provide financing D. Independent contractor D. Independent contractor The commercial building, equipment and stock (broad form policy) insures all of the following except: A. Theft or attempted theft B. Rupture of freezing C. Collapse D. Mysterious disappearance D. Mysterious disappearance Under a commercial property insurance policy, which of the following would be considered equipment? A. Photocopier leased from ideal copiers B. Advertising brochures promoting next months end sales C. Customers shoes kept on premises overnight for repair D. Shoes held on consignment A. Photocopier leased from ideal copiers The consequential loss assumption clauses is defined to insured: A. Damage caused to refrigerator or cooling equipment B. Damage caused by freezing due to power failure C. Loss to stock due to loss of temperature D. Contamination of stock due to rupture of supply piping C. Loss to stock due to loss of temperature The coverages provided by the coverages provided by the contractors equipment floater would insured which of the following losses? A. Damage caused to front end loader due to freezing B. Cracking of engine block on caterpillar due to freezing C. Fire damage to contractors plans, blueprints, design or specifications D. Sinking of caterpillar while operating over muskeg A. Damage caused to front end loader due to freezing The safe burglary rider would insure one of the following losses: