age 1 of 54
CAIB 2 FINAL EXAM STUDY GUIDE 2025/2026
ACCURATE QUESTIONS AND CORRECT DETAILED
ANSWERS WITH RATIONALES || 100% GUARANTEED
PASS <LATEST VERSION>
The Commercial General Liability Policy does not respond to
claims against the insured for bodily injuries sustained by
employees while performing the duties of their job.
State the underlying reason for this exclusion.
.......Answer.........Because most employees are covered under the
provincial Workers' Compensation Plan. Coverage is provided
on a no fault basis.
The insured had to cancel the booking of the pub for a large
private event because a ruptured pipe had caused serious
water damage to the premises and the restoration would not be
,age 2 of 54
completed in time. The insured was sued for breach of contract
by the band that was hired to perform at this event.
.......Answer.........NOT COVERED - REFERENCE: Ch. 2, pg. 10
Your client, the proprietor of pub, is insured under the
Commercial General Liability Policy. Indicate whether or not the
policy would respond in the following instances. State COVERED
or NOT COVERED
The insured received a $3,000 bill for a dental procedure from
a customer who broke a tooth when she bit on a piece of bone in
the pizza she had consumed at the pub. The customer had
informed the server of the incident .......Answer.........COVERED -
REFERENCE: Ch. 2, pg. 3, 5
What options are available to the insured to cover this
exposure? .......Answer.........To purchase Employer's Liability
,age 3 of 54
coverage or voluntarily enrol all employees under the provincial
Workers' Compensation Plan.
The insured hired a roofing contractor to replace the old tar and
gravel roof on the insured's building, which is flanked by two
other buildings not owned by the insured. The insured agreed to
assume the contractor's liability, which resulted in the reduction
of the contract price for the insured. During the work a spark
from the fire that heated the tar ignited setting the roof on fire
which spread within minutes to one of the adjacent buildings
causing serious damage to it. The court held the insured liable
for the damage. State COVERED or NOT COVERED
.......Answer.........COVERED
One winter day a pedestrian slipped and fell on the icy
sidewalk right in front of the insured's business premises located
at a small strip mall and fractured a leg. The mall owner
, age 4 of 54
maintained the premises and cleared the entire sidewalk of
snow and ice during the winter months. The insured had signed a
lease agreement which contained a clause that held the landlord
harmless for bodily injury or property damage. State COVERED
or NOT COVERED .......Answer.........COVERED
The insured's friend, an electrician, was installing new light
fixtures in the insured's beauty salon. During the installation a
glass lamp shade shattered and a falling piece cut a customer
who required medical attention. It turned out that the electrician
did not have liability insurance. As friends often help each other
out, the insured agreed to take the blame for the injury to the
customer. State COVERED or NOT COVERED
.......Answer.........NOT COVERED
The Commercial General Liability policy includes Coverage C.
Medical Payments for expenses incurred by a third party.
CAIB 2 FINAL EXAM STUDY GUIDE 2025/2026
ACCURATE QUESTIONS AND CORRECT DETAILED
ANSWERS WITH RATIONALES || 100% GUARANTEED
PASS <LATEST VERSION>
The Commercial General Liability Policy does not respond to
claims against the insured for bodily injuries sustained by
employees while performing the duties of their job.
State the underlying reason for this exclusion.
.......Answer.........Because most employees are covered under the
provincial Workers' Compensation Plan. Coverage is provided
on a no fault basis.
The insured had to cancel the booking of the pub for a large
private event because a ruptured pipe had caused serious
water damage to the premises and the restoration would not be
,age 2 of 54
completed in time. The insured was sued for breach of contract
by the band that was hired to perform at this event.
.......Answer.........NOT COVERED - REFERENCE: Ch. 2, pg. 10
Your client, the proprietor of pub, is insured under the
Commercial General Liability Policy. Indicate whether or not the
policy would respond in the following instances. State COVERED
or NOT COVERED
The insured received a $3,000 bill for a dental procedure from
a customer who broke a tooth when she bit on a piece of bone in
the pizza she had consumed at the pub. The customer had
informed the server of the incident .......Answer.........COVERED -
REFERENCE: Ch. 2, pg. 3, 5
What options are available to the insured to cover this
exposure? .......Answer.........To purchase Employer's Liability
,age 3 of 54
coverage or voluntarily enrol all employees under the provincial
Workers' Compensation Plan.
The insured hired a roofing contractor to replace the old tar and
gravel roof on the insured's building, which is flanked by two
other buildings not owned by the insured. The insured agreed to
assume the contractor's liability, which resulted in the reduction
of the contract price for the insured. During the work a spark
from the fire that heated the tar ignited setting the roof on fire
which spread within minutes to one of the adjacent buildings
causing serious damage to it. The court held the insured liable
for the damage. State COVERED or NOT COVERED
.......Answer.........COVERED
One winter day a pedestrian slipped and fell on the icy
sidewalk right in front of the insured's business premises located
at a small strip mall and fractured a leg. The mall owner
, age 4 of 54
maintained the premises and cleared the entire sidewalk of
snow and ice during the winter months. The insured had signed a
lease agreement which contained a clause that held the landlord
harmless for bodily injury or property damage. State COVERED
or NOT COVERED .......Answer.........COVERED
The insured's friend, an electrician, was installing new light
fixtures in the insured's beauty salon. During the installation a
glass lamp shade shattered and a falling piece cut a customer
who required medical attention. It turned out that the electrician
did not have liability insurance. As friends often help each other
out, the insured agreed to take the blame for the injury to the
customer. State COVERED or NOT COVERED
.......Answer.........NOT COVERED
The Commercial General Liability policy includes Coverage C.
Medical Payments for expenses incurred by a third party.
