Canadian Accredited Insurance Broker Program CAIB 1
Comprehensive Questions with Their Verified Answers
2025 Rollout!
undertaking by one person to indemnify another person
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 ting of value upon
the happening of a certain event
an agreement between two or more persons which creates an
Contract
obligation to do or not to do a particular thing
Insurable Interest showing you would suffer financially by a loss
Utmost good faith caveat emptor, buyer beware. Exercise a higher standard of honesty
putting the insured back into the same position as they were in
Indemnity
as immediately prior to loss
Binder Contract of insurace
Agency Agreement source of a brokers authority
Void Unable to support its intended purpose, treated as though it never
existed
Voidable void to the wrongdoer but not to the wronged party unless they elect to
treat it so
Peril The cause of a loss
Direct Loss When the object of insurance is the loss
Indirect loss Losses which arise as a consequence of a direct loss
Actual cash value New or replacement cost of the insured property less depreciation
repair or replacement of lost or damaged property with new
Replacement cost
property of like kind and quality without depreciation
insured and insurer agree on the cash value of the property at
Valued policy
the time the policy is issued
Blanket coverage single limit of insurance for all property falling within specific class
Scheduled coverage property is itemized on the policy
someone who occupies a position of special trust or confidence
Fiduccary
in the handling or supervising of the affairs or funds of
another
Unearned premium portion of premium that has yet to be earned
Fire the presence of visible flame or glow
Friendly fire damaged caused to a property deliberately , no coverage
, Hostile fire a fire that passes outside the limits assigned to it
Proximate result The event that actually caused the loss
Any change within the control and knowledge of the insured that
Material change
happened after the policy was issued and increases the chance
of loss.
insurer divides the amount of premium paid by the number of
Pro Rata
days in the policy period. Multiply that amount by the
number of days remaining in the policy
Includes the costs of staff and computer time that would not
Short Rate
have been incurred had the policy remained in force for the
full policy term
Notice of loss notification given to the insurer informing them of a loss
a formal verification, under oath, of the details and amounts being
Proof of loss
claimed under the policy
Fraud A deliberate attempt to deceive, with a view to securing some profit
Comprehensive Questions with Their Verified Answers
2025 Rollout!
undertaking by one person to indemnify another person
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 ting of value upon
the happening of a certain event
an agreement between two or more persons which creates an
Contract
obligation to do or not to do a particular thing
Insurable Interest showing you would suffer financially by a loss
Utmost good faith caveat emptor, buyer beware. Exercise a higher standard of honesty
putting the insured back into the same position as they were in
Indemnity
as immediately prior to loss
Binder Contract of insurace
Agency Agreement source of a brokers authority
Void Unable to support its intended purpose, treated as though it never
existed
Voidable void to the wrongdoer but not to the wronged party unless they elect to
treat it so
Peril The cause of a loss
Direct Loss When the object of insurance is the loss
Indirect loss Losses which arise as a consequence of a direct loss
Actual cash value New or replacement cost of the insured property less depreciation
repair or replacement of lost or damaged property with new
Replacement cost
property of like kind and quality without depreciation
insured and insurer agree on the cash value of the property at
Valued policy
the time the policy is issued
Blanket coverage single limit of insurance for all property falling within specific class
Scheduled coverage property is itemized on the policy
someone who occupies a position of special trust or confidence
Fiduccary
in the handling or supervising of the affairs or funds of
another
Unearned premium portion of premium that has yet to be earned
Fire the presence of visible flame or glow
Friendly fire damaged caused to a property deliberately , no coverage
, Hostile fire a fire that passes outside the limits assigned to it
Proximate result The event that actually caused the loss
Any change within the control and knowledge of the insured that
Material change
happened after the policy was issued and increases the chance
of loss.
insurer divides the amount of premium paid by the number of
Pro Rata
days in the policy period. Multiply that amount by the
number of days remaining in the policy
Includes the costs of staff and computer time that would not
Short Rate
have been incurred had the policy remained in force for the
full policy term
Notice of loss notification given to the insurer informing them of a loss
a formal verification, under oath, of the details and amounts being
Proof of loss
claimed under the policy
Fraud A deliberate attempt to deceive, with a view to securing some profit
