Canadian Accredited Insurance Broker Program CAIB 1
Comprehensive Questions with Their Verified Answers 2025 Rollout!
Terms in this set (86)
The chance of financial loss
to which an object is
Risk
exposed
category of risk which
involves the possibility of
Speculative Risk
either financial loss or gain.
This type of risk is
NOT insurable. Ex. Gambling
category of risk in which
loss is the only possible
Pure Risk outcome, which is the
opposite of
speculative risk. Pure risk is the
only type that is insurable.
C-A-R-T
Acronym means of Control, Avoid, Retain & Transfer
managing risk
, A-C-L-L-G
Agreement, Consideration,
Acronym 5 elements of
Legality of Object, Legal
Contract
Capacity of Parties to Contract,
Genuine Intention
A meeting of minds where
an offer is made and there
Agreement
is
unconditional acceptance of
that offer.
something of value
exchanged for something
else of value. In
Consideration
Insurance contracts its
payment of premium for
promise of indemnity in
the event of a
covered loss.
The purpose of a legally
enforceable contract
Legality of Object
cannot be for illegal actions
or acts against public
policy.
only contracts that are made
by competent persons are
able to be enforced by law.
Examples: minors (may
Legal Capacity
contract for necessities of
to Contract
life), mental
incompetents, persons
under the influence of
drugs or
alcohol, Trade names (no
legal status)
, A contract is enforceable
only when it can be shown
that the parties actually
intended to
enter into a contract. To
Genuine Intention prove genuine intention, it is
necessary to show that the
agreement b/w the parties
was not affected by:
-fraud
-duress
-concealment
-mistake
I-U-I
Acronym for 3 Elements Insurable Interest, Utmost
of Insurance Contracts Good Faith, Indemnity
Any financial interest in
life or property such that, if
the life or property were
lost or harmed, the
insured would suffer
Insurable Interest
financially. EX: Property owners,
Mortgagees, Bailees & any
person who may be held
legally responsible to a 3rd
Party for bodily injury or
property
damage.
An obligation to act in
complete honesty and to
Utmost Good Faith
disclose all
relevant facts.
Comprehensive Questions with Their Verified Answers 2025 Rollout!
Terms in this set (86)
The chance of financial loss
to which an object is
Risk
exposed
category of risk which
involves the possibility of
Speculative Risk
either financial loss or gain.
This type of risk is
NOT insurable. Ex. Gambling
category of risk in which
loss is the only possible
Pure Risk outcome, which is the
opposite of
speculative risk. Pure risk is the
only type that is insurable.
C-A-R-T
Acronym means of Control, Avoid, Retain & Transfer
managing risk
, A-C-L-L-G
Agreement, Consideration,
Acronym 5 elements of
Legality of Object, Legal
Contract
Capacity of Parties to Contract,
Genuine Intention
A meeting of minds where
an offer is made and there
Agreement
is
unconditional acceptance of
that offer.
something of value
exchanged for something
else of value. In
Consideration
Insurance contracts its
payment of premium for
promise of indemnity in
the event of a
covered loss.
The purpose of a legally
enforceable contract
Legality of Object
cannot be for illegal actions
or acts against public
policy.
only contracts that are made
by competent persons are
able to be enforced by law.
Examples: minors (may
Legal Capacity
contract for necessities of
to Contract
life), mental
incompetents, persons
under the influence of
drugs or
alcohol, Trade names (no
legal status)
, A contract is enforceable
only when it can be shown
that the parties actually
intended to
enter into a contract. To
Genuine Intention prove genuine intention, it is
necessary to show that the
agreement b/w the parties
was not affected by:
-fraud
-duress
-concealment
-mistake
I-U-I
Acronym for 3 Elements Insurable Interest, Utmost
of Insurance Contracts Good Faith, Indemnity
Any financial interest in
life or property such that, if
the life or property were
lost or harmed, the
insured would suffer
Insurable Interest
financially. EX: Property owners,
Mortgagees, Bailees & any
person who may be held
legally responsible to a 3rd
Party for bodily injury or
property
damage.
An obligation to act in
complete honesty and to
Utmost Good Faith
disclose all
relevant facts.
