Canadian Accredited Insurance Broker Program CAIB 1
Comprehensive Questions with Their Verified Answers
2025 Rollout!
Terms in this set (216)
Risk the chance of financial loss to which an object of insurance is exposed
Speculative Risk Involves the possibility of either financial loss or gain
involves the chance of financial loss does not, at the same time,
Pure Risk
offer a chance of financial gain
the undertaking by one person to indemnify another persons
against loss or liability for loss in respect of a certain risk or
Insurance
peril to which the object of insurance may be exposed... or to
pay a sum of money or other thing of value upon the happening
of a certain event
an agreement between two or more people which creates an
Contract
obligation to do or not to do something
Consideration an exchange of something of value between the parties
Insurable Interest when they are able to show that they would suffer financially by a loss
sellers are to tell the truth about their products and that
Utmost Good Faith
buyers exercise care in their selection
contracts of insurance; the broker has committed the insurer to
Insurance Binder
provide a contract of insurance on the subject matter under
discussion
Void Contract one which is unable in law to support the purpose for which it was
intended
one which is void as to the wrongdoer but not void as to the
Voidable Contract
wronged party, unless he elects to so treat it
Peril the cause of a loss
Direct Loss when the object of insurance is actually attacked by an insured peril
Indirect Loss loss which arise as a consequence of direct loss
, Actual Cash Value the new or replacement cost of the property at the time of the loss, less
depreciation
how much it would cost to replace or repair any lost or
Replacement Cost
damaged property of LIKE kind and quality, without deduction
for depreciation
Insurance for property such as old jewellery, antiques,
Valued Policy
memorabilia, and original works of art, will generally be
unable to replace them in the event of a loss
policies that allow insured's to select a single limit of insurance
Blanket Coverage
for all property falling within a specific class
Scheduled Coverage when property is itemized on a policy
one who occupies a position of special trust in the handling or
Fiduciary
supervising of the affairs or funds of another
are deemed to be held in trust in order to refund the insured's
Unearned Premiums
in event the policy is cancelled prior to the expiry date
Fire involves the presence of a visible flame or glow
Friendly Fire one that is contained in its proper receptacle
Hostile Fire once a fire passes out the limits assigned to it
Damage which arises from a natural or continuous sequence of the
Proximate Result
peril causing the loss
any change within control and knowledge of the insured which;
Material Change
arises after the policy has been issued, and serves to increase
the chance of loss
when the policy is terminated by the insurer, the amount of the
Pro Rata
refund will be calculated using this
when the insured terminates the policy, the amount of the
Short Rate
refund is calculated using this
Notice of Loss must be given forthwith and immediately as well as in writing
Proof of Loss states what was lost and how
Fraud a deliberate attempt to deceive, with the goal of financial gain
Amount you must pay before you begin receiving any benefits
Deductible
from your insurance company
when insurers put themselves into the insured's shoes in
Subrogation
respect of their right to recover the amount of their loss from
the responsible party
Proprietary Insurer Insurer formed for the purpose of earning a profit for its owners
Comprehensive Questions with Their Verified Answers
2025 Rollout!
Terms in this set (216)
Risk the chance of financial loss to which an object of insurance is exposed
Speculative Risk Involves the possibility of either financial loss or gain
involves the chance of financial loss does not, at the same time,
Pure Risk
offer a chance of financial gain
the undertaking by one person to indemnify another persons
against loss or liability for loss in respect of a certain risk or
Insurance
peril to which the object of insurance may be exposed... or to
pay a sum of money or other thing of value upon the happening
of a certain event
an agreement between two or more people which creates an
Contract
obligation to do or not to do something
Consideration an exchange of something of value between the parties
Insurable Interest when they are able to show that they would suffer financially by a loss
sellers are to tell the truth about their products and that
Utmost Good Faith
buyers exercise care in their selection
contracts of insurance; the broker has committed the insurer to
Insurance Binder
provide a contract of insurance on the subject matter under
discussion
Void Contract one which is unable in law to support the purpose for which it was
intended
one which is void as to the wrongdoer but not void as to the
Voidable Contract
wronged party, unless he elects to so treat it
Peril the cause of a loss
Direct Loss when the object of insurance is actually attacked by an insured peril
Indirect Loss loss which arise as a consequence of direct loss
, Actual Cash Value the new or replacement cost of the property at the time of the loss, less
depreciation
how much it would cost to replace or repair any lost or
Replacement Cost
damaged property of LIKE kind and quality, without deduction
for depreciation
Insurance for property such as old jewellery, antiques,
Valued Policy
memorabilia, and original works of art, will generally be
unable to replace them in the event of a loss
policies that allow insured's to select a single limit of insurance
Blanket Coverage
for all property falling within a specific class
Scheduled Coverage when property is itemized on a policy
one who occupies a position of special trust in the handling or
Fiduciary
supervising of the affairs or funds of another
are deemed to be held in trust in order to refund the insured's
Unearned Premiums
in event the policy is cancelled prior to the expiry date
Fire involves the presence of a visible flame or glow
Friendly Fire one that is contained in its proper receptacle
Hostile Fire once a fire passes out the limits assigned to it
Damage which arises from a natural or continuous sequence of the
Proximate Result
peril causing the loss
any change within control and knowledge of the insured which;
Material Change
arises after the policy has been issued, and serves to increase
the chance of loss
when the policy is terminated by the insurer, the amount of the
Pro Rata
refund will be calculated using this
when the insured terminates the policy, the amount of the
Short Rate
refund is calculated using this
Notice of Loss must be given forthwith and immediately as well as in writing
Proof of Loss states what was lost and how
Fraud a deliberate attempt to deceive, with the goal of financial gain
Amount you must pay before you begin receiving any benefits
Deductible
from your insurance company
when insurers put themselves into the insured's shoes in
Subrogation
respect of their right to recover the amount of their loss from
the responsible party
Proprietary Insurer Insurer formed for the purpose of earning a profit for its owners
