age 1 of 24
CAIB 2 FINAL EXAM STUDY GUIDE 2025/2026
ACCURATE QUESTIONS AND CORRECT DETAILED
ANSWERS WITH RATIONALES || 100% GUARANTEED
PASS <LATEST VERSION>
Hunt operates a gun shop out of rented premises at a local mall.
While retail gun sales account for the majority of the stores
income, the business earns approximately $50,000 a year from
gun repairs. Mr Hunt carries $80,000 of insurance on stock.
i) the definition of stock contained on mr hunt's policy provides
limited coverage for similar property belonging to customers
(ex. Customers guns left on premises for repair) explain the
circumstances that must be present before the stock coverage
purchase by mr. hunt would respond to pay for loss to guns
,age 2 of 24
belonging to his customers. .......Answer.........1. Client must be
legally liable for loss to customers property.
2. Client must be legally obligated to insure customers property.
Mr hunt has requested that a number of property items be
added to his existing policy. Indicate whether the following
would be either: a) building b) stock c) equipment
1)Packing and wrapping materials -$500.00
2) wall panelling and lighting fixtures installed on the premises -
$3100.00 .......Answer.........1. Packing and wrapping materials -
stock
2. Wall panelling and lighting fixtures installed on the premises
- equipment.
, age 3 of 24
When there is a loss to customers property, the property of
others clause contained in the policy outlines the payment
options available to the insurer. Identify the 2 payment options
available to the insurer under this clause. .......Answer.........1.
Insurer may make claim payment to the insured
2. Insurer may make claim payment to the owner of the
property.
How is an occurrence defined under an EQ end't?
.......Answer.........Defined as all eq shocks in any 72 hour period.
What advantage does this have for the insured?
.......Answer.........One deductible applied to all damage caused
by shocks within 72 hours
RC will only be provided if insured fulfills certain obligations
under the policy. Identify 3 things they must do:
CAIB 2 FINAL EXAM STUDY GUIDE 2025/2026
ACCURATE QUESTIONS AND CORRECT DETAILED
ANSWERS WITH RATIONALES || 100% GUARANTEED
PASS <LATEST VERSION>
Hunt operates a gun shop out of rented premises at a local mall.
While retail gun sales account for the majority of the stores
income, the business earns approximately $50,000 a year from
gun repairs. Mr Hunt carries $80,000 of insurance on stock.
i) the definition of stock contained on mr hunt's policy provides
limited coverage for similar property belonging to customers
(ex. Customers guns left on premises for repair) explain the
circumstances that must be present before the stock coverage
purchase by mr. hunt would respond to pay for loss to guns
,age 2 of 24
belonging to his customers. .......Answer.........1. Client must be
legally liable for loss to customers property.
2. Client must be legally obligated to insure customers property.
Mr hunt has requested that a number of property items be
added to his existing policy. Indicate whether the following
would be either: a) building b) stock c) equipment
1)Packing and wrapping materials -$500.00
2) wall panelling and lighting fixtures installed on the premises -
$3100.00 .......Answer.........1. Packing and wrapping materials -
stock
2. Wall panelling and lighting fixtures installed on the premises
- equipment.
, age 3 of 24
When there is a loss to customers property, the property of
others clause contained in the policy outlines the payment
options available to the insurer. Identify the 2 payment options
available to the insurer under this clause. .......Answer.........1.
Insurer may make claim payment to the insured
2. Insurer may make claim payment to the owner of the
property.
How is an occurrence defined under an EQ end't?
.......Answer.........Defined as all eq shocks in any 72 hour period.
What advantage does this have for the insured?
.......Answer.........One deductible applied to all damage caused
by shocks within 72 hours
RC will only be provided if insured fulfills certain obligations
under the policy. Identify 3 things they must do:
