CAIB 2 Practice Exam
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1. Waivers of Co-in- Is less than $5000 or Is less than 2% of the amount of insurance. (72,00 x
surance clause 2%=1440)
are common on
commercial prop-
erty policies. What
types of losses are
applicable to this
waiver of co-insur-
ance?
2. Identify 3 reasons losses which are generally considered by insurers to be commercially insurable:
why exclusions ex- 1. Deliberate acts of violence -war, rebellion
ist on commercial 2. losses which are considered catastrophic, Earthquake, snow slides, landslides
property policy. 3. more specialized policy forms exist - Auto, aircraft
3. Commercial prop- 1. Vehicle containing the property insured be equipped with a fully enclosed body
erty policies may or compartment
provide coverage 2. The doors are securely locked and the widow closed
from theft while 3. Access or entry to the vehicle mu have been gained through the use of force
property is an au-
tomobiles. What
warranty will be
included in com-
mercial proper-
ty policies when
theft coverage is
provided for prop-
erty in automo-
biles?
4. Statutory Condi- 1. Pair and Set - the undamaged property still has value will be deducted from
tions or Commer- claim payment
, CAIB 2 Practice Exam
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cial Property con- 2. No benefit to Bailee - bailee must take care of the property of the other with
ditions Policy con- ordinary Care
ditions. What are 3. Sue and Labour - insured must take all reasonable action to recover stolen
3 additional con- property
ditions contained
in a number of
commercial prop-
erty for and ex-
plain the effect of
each?
5. Identify three 1. Assist in identification of losses or exposures
things that a Sur- 2. Helps to determine the coverages needed
vey does? 3. Develops other underwriting information need by the insurer.
6. What benefits 1. Alerts broker to possible losses or exposures
would a checklist 2. Ensures that needed coverages are not forgotten or ignored
have in relation to 3. Helps to reduce the potential for errors and omissions claim
the survey?
7. Identify the two Straight line depreciation - is based on the number of years something could
types of depreci- have reasonably been expected to function. A building that is 30 year old but can
ation used in the be used for another 30 years is 50% depreciated.
Formula/Cost ap-
proach and give Plateau accelerated depreciation- A property which is mostly productive in its early
an example for years. The greats depreciation will happen in the first few years. Once that certain
each: age is reached the depreciation plateaus, example office equipment
8. When is the In- When a run down building is used for a business which is making a profit.
come Approach The net annual rental income is determined and a capitalization factor applied to
method most it to produce actual cash value amount.
commonly em-
ployed?
, CAIB 2 Practice Exam
Study online at https://quizlet.com/_ec0kdl
9. Identify three rea- 1. The line of business is so specialized as to not be covered the insurer's treaty
sons why a Sub- with its reinsurers
scription Policy
may be used: 2. They type of risk is on which the insurer does not want to expose to reinsurance
treaties
3. The limits do not exceed the insurer's net retention limits but are beyond what
it is prepared to pay in a single claim
10. Identify the three 1. Actual Cash Value
amounts to be
considered when 2. Insured's financial interest
calculating the
3. Amount of insurance
amount of pay-
Which ever amount is lowest.
ment as outlined
in the Indem-
nity agreement
and of the three
amounts which
one is payable?
11. Insurers agree to is under 2% of insured amount
'waive' any co-in-
surance require- or is under $5000
ment when a loss
meets either of
the following con-
ditions (2):
12. Insurers have Loss due to war or arising out of the nuclear energy hazard
many reasons for -Considered uninsurable
excluding cover-
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1. Waivers of Co-in- Is less than $5000 or Is less than 2% of the amount of insurance. (72,00 x
surance clause 2%=1440)
are common on
commercial prop-
erty policies. What
types of losses are
applicable to this
waiver of co-insur-
ance?
2. Identify 3 reasons losses which are generally considered by insurers to be commercially insurable:
why exclusions ex- 1. Deliberate acts of violence -war, rebellion
ist on commercial 2. losses which are considered catastrophic, Earthquake, snow slides, landslides
property policy. 3. more specialized policy forms exist - Auto, aircraft
3. Commercial prop- 1. Vehicle containing the property insured be equipped with a fully enclosed body
erty policies may or compartment
provide coverage 2. The doors are securely locked and the widow closed
from theft while 3. Access or entry to the vehicle mu have been gained through the use of force
property is an au-
tomobiles. What
warranty will be
included in com-
mercial proper-
ty policies when
theft coverage is
provided for prop-
erty in automo-
biles?
4. Statutory Condi- 1. Pair and Set - the undamaged property still has value will be deducted from
tions or Commer- claim payment
, CAIB 2 Practice Exam
Study online at https://quizlet.com/_ec0kdl
cial Property con- 2. No benefit to Bailee - bailee must take care of the property of the other with
ditions Policy con- ordinary Care
ditions. What are 3. Sue and Labour - insured must take all reasonable action to recover stolen
3 additional con- property
ditions contained
in a number of
commercial prop-
erty for and ex-
plain the effect of
each?
5. Identify three 1. Assist in identification of losses or exposures
things that a Sur- 2. Helps to determine the coverages needed
vey does? 3. Develops other underwriting information need by the insurer.
6. What benefits 1. Alerts broker to possible losses or exposures
would a checklist 2. Ensures that needed coverages are not forgotten or ignored
have in relation to 3. Helps to reduce the potential for errors and omissions claim
the survey?
7. Identify the two Straight line depreciation - is based on the number of years something could
types of depreci- have reasonably been expected to function. A building that is 30 year old but can
ation used in the be used for another 30 years is 50% depreciated.
Formula/Cost ap-
proach and give Plateau accelerated depreciation- A property which is mostly productive in its early
an example for years. The greats depreciation will happen in the first few years. Once that certain
each: age is reached the depreciation plateaus, example office equipment
8. When is the In- When a run down building is used for a business which is making a profit.
come Approach The net annual rental income is determined and a capitalization factor applied to
method most it to produce actual cash value amount.
commonly em-
ployed?
, CAIB 2 Practice Exam
Study online at https://quizlet.com/_ec0kdl
9. Identify three rea- 1. The line of business is so specialized as to not be covered the insurer's treaty
sons why a Sub- with its reinsurers
scription Policy
may be used: 2. They type of risk is on which the insurer does not want to expose to reinsurance
treaties
3. The limits do not exceed the insurer's net retention limits but are beyond what
it is prepared to pay in a single claim
10. Identify the three 1. Actual Cash Value
amounts to be
considered when 2. Insured's financial interest
calculating the
3. Amount of insurance
amount of pay-
Which ever amount is lowest.
ment as outlined
in the Indem-
nity agreement
and of the three
amounts which
one is payable?
11. Insurers agree to is under 2% of insured amount
'waive' any co-in-
surance require- or is under $5000
ment when a loss
meets either of
the following con-
ditions (2):
12. Insurers have Loss due to war or arising out of the nuclear energy hazard
many reasons for -Considered uninsurable
excluding cover-
