CAIB 2 Immersion Questions And Correct
Answers 100% Verified 2025-2026!!
Identify three methods that can be used to gain access to a Protected Enclosure?
Provide an example for each. - ANSWER>>Mechanical: Drills
Thermal: Torches
Explosion: Dynamite
What is the purpose of Perimeter Protection? - ANSWER>>To deny access to the
premises when the business is closed
Define Partial Protection and provide two weaknesses to Partial Protection? -
ANSWER>>When only openings to the building are protected, such as windows and
doors.
For the most part, forced entry through walls or ceilings will not be detected and stay
behind thieves will not be noticed until they leave.
Common Clause: Indemnity Agreement - ANSWER>>Policy pays least of:
ACV at the time of loss,
Insured's interest,
Policy limits
Common Clause: Deductible - ANSWER>>Per occurrence
One deductible per location
Common Clause: Co-Insurance - ANSWER>>Applies separately to each item.
,Waived if loss is below 2% of insurance limit or $5,000.
Encourages insurance to be purchased for at least a certain % of value.
Common Clause: Permission - ANSWER>>Granted for:
Other insurance,
Alterations or additions,
To carry substances usual to insured business
Common Clause: Breach of Conditions - ANSWER>>Breach must have impacted loss
to deny coverage.
Common Clause: Reinstatement - ANSWER>>Losses do not reduce amount of
insurance.
Refunds not impacted by claim in policy period.
Common Clause: Subrogation - ANSWER>>Right of recovery passed to insurer after
payment of loss.
Common Clause: Property Protection Systems - ANSWER>>Insured shall notify of any
known defect or weakness in any:
Fire extinguishing system,
Fire detection system,
Intrusion detection system.
Common Clause: Premium Adjustment - ANSWER>>Stock sufficiently covered of
actual inventory declared at the end of the term.
6 months to apply for premium adjustment at expiry.
Com monks: Conditions precedent to liability ANSWER>>Insurer right to inspect book:
,Any time during the currency of the policy &
One year from cancellation
Common Clause: Basic of Valuation - ANSWER>>There is payment under the policy by
ACV at the time of loss, subject to not being more than what it would have cost to repair.
Exceptions:
Sold Stock - selling price less discount.
Property of other - maximum value insured is liable.
Tenants Improvements - If NOT repairing, will be proportionate value of improvements
to remaining time in lease.
Records - Blank record and cost to transfer data.
Common Clause: Property of Others - ANSWER>>Insurer's option to either pay insured
or owner of the property.
Common Clause: Locked Vehicle Warranty *BROAD FORM ONLY* -
ANSWER>>Property in vehicles must be kept in fully enclosed, locked vehicles.
Must have signs of forced entry.
What perils are covered under Basic Fire policy? - ANSWER>>Fire
Lightning
Explosion of natural, coal or manufactured gas
Excluded PERILS to Basic Fire policy? - ANSWER>>Electrical devices by artificial
currents.
Application of heat (only to the item heat was applied to- ensuing fire covered).
War risks.
Nuclear incident or contamination (ensuing fire would be covered)
Excluded PROPERTY to Basic Fire policy? - ANSWER>>Money, bullion & securities.
, Automobiles, trailers, watercraft and airplanes unless held for sale or solely on
premises for business and unregistered.
Vacancy, unoccupancy or disuse beyond 30 days.
By laws.
EXTENSIONS to Basic Fire policy? - ANSWER>>PROPERTY REMOVED:
Removal off premises after loss to protect property.
Extends for 7 days or expiry.
Does not increase limit of insurance.
Same terms and conditions of standard policy.
&
DEBRIS REMOVAL:
Clean up insured property after loss.
25% of direct physical loss in coverage.
No coverage for clean up of pollution.
Not considered in co-insurance calculations.
Subject to policy limits.
Exclusion to Broad Form: Furs, Jewellery and Precious Stones - ANSWER>>Exclusion
doesn't apply to first $1,000 of any loss.
Must be direct damage by named perils.
Exclusion to Broad Form: Property in the custody of a sales representative. -
ANSWER>>While outside of premises.
Except when amount of insurance for sales reps are described on the declaration page.
Answers 100% Verified 2025-2026!!
Identify three methods that can be used to gain access to a Protected Enclosure?
Provide an example for each. - ANSWER>>Mechanical: Drills
Thermal: Torches
Explosion: Dynamite
What is the purpose of Perimeter Protection? - ANSWER>>To deny access to the
premises when the business is closed
Define Partial Protection and provide two weaknesses to Partial Protection? -
ANSWER>>When only openings to the building are protected, such as windows and
doors.
For the most part, forced entry through walls or ceilings will not be detected and stay
behind thieves will not be noticed until they leave.
Common Clause: Indemnity Agreement - ANSWER>>Policy pays least of:
ACV at the time of loss,
Insured's interest,
Policy limits
Common Clause: Deductible - ANSWER>>Per occurrence
One deductible per location
Common Clause: Co-Insurance - ANSWER>>Applies separately to each item.
,Waived if loss is below 2% of insurance limit or $5,000.
Encourages insurance to be purchased for at least a certain % of value.
Common Clause: Permission - ANSWER>>Granted for:
Other insurance,
Alterations or additions,
To carry substances usual to insured business
Common Clause: Breach of Conditions - ANSWER>>Breach must have impacted loss
to deny coverage.
Common Clause: Reinstatement - ANSWER>>Losses do not reduce amount of
insurance.
Refunds not impacted by claim in policy period.
Common Clause: Subrogation - ANSWER>>Right of recovery passed to insurer after
payment of loss.
Common Clause: Property Protection Systems - ANSWER>>Insured shall notify of any
known defect or weakness in any:
Fire extinguishing system,
Fire detection system,
Intrusion detection system.
Common Clause: Premium Adjustment - ANSWER>>Stock sufficiently covered of
actual inventory declared at the end of the term.
6 months to apply for premium adjustment at expiry.
Com monks: Conditions precedent to liability ANSWER>>Insurer right to inspect book:
,Any time during the currency of the policy &
One year from cancellation
Common Clause: Basic of Valuation - ANSWER>>There is payment under the policy by
ACV at the time of loss, subject to not being more than what it would have cost to repair.
Exceptions:
Sold Stock - selling price less discount.
Property of other - maximum value insured is liable.
Tenants Improvements - If NOT repairing, will be proportionate value of improvements
to remaining time in lease.
Records - Blank record and cost to transfer data.
Common Clause: Property of Others - ANSWER>>Insurer's option to either pay insured
or owner of the property.
Common Clause: Locked Vehicle Warranty *BROAD FORM ONLY* -
ANSWER>>Property in vehicles must be kept in fully enclosed, locked vehicles.
Must have signs of forced entry.
What perils are covered under Basic Fire policy? - ANSWER>>Fire
Lightning
Explosion of natural, coal or manufactured gas
Excluded PERILS to Basic Fire policy? - ANSWER>>Electrical devices by artificial
currents.
Application of heat (only to the item heat was applied to- ensuing fire covered).
War risks.
Nuclear incident or contamination (ensuing fire would be covered)
Excluded PROPERTY to Basic Fire policy? - ANSWER>>Money, bullion & securities.
, Automobiles, trailers, watercraft and airplanes unless held for sale or solely on
premises for business and unregistered.
Vacancy, unoccupancy or disuse beyond 30 days.
By laws.
EXTENSIONS to Basic Fire policy? - ANSWER>>PROPERTY REMOVED:
Removal off premises after loss to protect property.
Extends for 7 days or expiry.
Does not increase limit of insurance.
Same terms and conditions of standard policy.
&
DEBRIS REMOVAL:
Clean up insured property after loss.
25% of direct physical loss in coverage.
No coverage for clean up of pollution.
Not considered in co-insurance calculations.
Subject to policy limits.
Exclusion to Broad Form: Furs, Jewellery and Precious Stones - ANSWER>>Exclusion
doesn't apply to first $1,000 of any loss.
Must be direct damage by named perils.
Exclusion to Broad Form: Property in the custody of a sales representative. -
ANSWER>>While outside of premises.
Except when amount of insurance for sales reps are described on the declaration page.
