Page 1 of 45
CAIB 3 EXAMS NEWEST 2025 PACKAGE DEAL|
COMPLETE ACTUAL EXAM QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS) GRADED
A+| CAIB 1 -4 ACTUAL EXAM TEST BANK (BRAND
NEW!!)
Outline the purpose of the OPCF 44 Endorsement and indicate
how it affects the amount of insurance available to the insured.
.....ANSWER..... To increase the TP limits available to victims to
the same limits as purchased under their own Policy. Insured can
avail the difference between TP Limit of his own Policy & the TP
limit of the at-fault 3rd Party.
Outline the purpose of the OPCF 20 Endorsement .....ANSWER.....
To recover Expenses incurred on -
a) rental of substitute automobile
b) Taxicabs or public means of transportation
,Page 2 of 45
When your client has $1M in TPL and gets into an accident with
a third party who carrier $200,000 in TPL. How much will this
allow her policy to pay out for a max loss of $1M
.....ANSWER..... $800,000
Most rental agencies attempt to sell Sally the full range of
automobile insurance coverages. Identify the two (2) coverages
provided by all insurance policies which extend rental
automobiles. .....ANSWER..... Third Party Liability and Accident
Benefits
When automobiles owned by the insured's employee are used in
the business, the employer has a non-owned automobile liability
exposure. Indicate the automobile insurance policy which can be
purchased by employers to insure this exposure. And name
another method of providing this coverage to business owners.
.....ANSWER..... SPF6 Non-Owned Auto Liability and a CGL
policy is an alternative.
,Page 3 of 45
Covered or Not Covered Under the OAP1: Automobile is being
used to transport tourists on local tours .....ANSWER..... Not
Covered: Sight seeing conveyance is excluded.
Covered or Not Covered Under the OAP1: Automobile is being
used transport prospective buyers to real estate development
located 30 kms. From the insured's office. .....ANSWER.....
Covered: Carriage of clients or prospective clients is ok.
Covered or Not Covered Under the OAP1: Automobile is used
car pool in which all persons involved take regular turns
providing
transportation. .....ANSWER..... Covered: Car pool permitted.
Covered or Not Covered Under the OAP1: Automobile is used
occasionally to drive members of daughter's high school hockey
team to games or tournaments. The insured receives $2.5/Km as
a transportation allowance from the school. .....ANSWER.....
Covered: Occasional & infrequent use permitted
, Page 4 of 45
Each time Iona rents a car, the rental agency attempts to sell her
insurance to cover the period of the rental. Iona has asked you
whether the policy on her own automobile would respond to
pay for any claims arising out of the use of a rented automobile.
Identify 2 coverages provided under Iona's own policy which
automatically extend to rented automobiles and which, therefore,
do not need to be purchased from the rental agency.
.....ANSWER..... Third Party Liability and Accident Benefits
When automobiles owned by the insured's employees are used in
the business, the employer has a non-owned automobile liability
exposure. While the policy which can be purchased by
employers to insure this exposure can be provided on a
standalone basis, it is not normally done in this way. Explain the
usual manner in which this coverage is provided to business
owners. .....ANSWER..... CGL Policy or CGL Policy Endorsement
CAIB 3 EXAMS NEWEST 2025 PACKAGE DEAL|
COMPLETE ACTUAL EXAM QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS) GRADED
A+| CAIB 1 -4 ACTUAL EXAM TEST BANK (BRAND
NEW!!)
Outline the purpose of the OPCF 44 Endorsement and indicate
how it affects the amount of insurance available to the insured.
.....ANSWER..... To increase the TP limits available to victims to
the same limits as purchased under their own Policy. Insured can
avail the difference between TP Limit of his own Policy & the TP
limit of the at-fault 3rd Party.
Outline the purpose of the OPCF 20 Endorsement .....ANSWER.....
To recover Expenses incurred on -
a) rental of substitute automobile
b) Taxicabs or public means of transportation
,Page 2 of 45
When your client has $1M in TPL and gets into an accident with
a third party who carrier $200,000 in TPL. How much will this
allow her policy to pay out for a max loss of $1M
.....ANSWER..... $800,000
Most rental agencies attempt to sell Sally the full range of
automobile insurance coverages. Identify the two (2) coverages
provided by all insurance policies which extend rental
automobiles. .....ANSWER..... Third Party Liability and Accident
Benefits
When automobiles owned by the insured's employee are used in
the business, the employer has a non-owned automobile liability
exposure. Indicate the automobile insurance policy which can be
purchased by employers to insure this exposure. And name
another method of providing this coverage to business owners.
.....ANSWER..... SPF6 Non-Owned Auto Liability and a CGL
policy is an alternative.
,Page 3 of 45
Covered or Not Covered Under the OAP1: Automobile is being
used to transport tourists on local tours .....ANSWER..... Not
Covered: Sight seeing conveyance is excluded.
Covered or Not Covered Under the OAP1: Automobile is being
used transport prospective buyers to real estate development
located 30 kms. From the insured's office. .....ANSWER.....
Covered: Carriage of clients or prospective clients is ok.
Covered or Not Covered Under the OAP1: Automobile is used
car pool in which all persons involved take regular turns
providing
transportation. .....ANSWER..... Covered: Car pool permitted.
Covered or Not Covered Under the OAP1: Automobile is used
occasionally to drive members of daughter's high school hockey
team to games or tournaments. The insured receives $2.5/Km as
a transportation allowance from the school. .....ANSWER.....
Covered: Occasional & infrequent use permitted
, Page 4 of 45
Each time Iona rents a car, the rental agency attempts to sell her
insurance to cover the period of the rental. Iona has asked you
whether the policy on her own automobile would respond to
pay for any claims arising out of the use of a rented automobile.
Identify 2 coverages provided under Iona's own policy which
automatically extend to rented automobiles and which, therefore,
do not need to be purchased from the rental agency.
.....ANSWER..... Third Party Liability and Accident Benefits
When automobiles owned by the insured's employees are used in
the business, the employer has a non-owned automobile liability
exposure. While the policy which can be purchased by
employers to insure this exposure can be provided on a
standalone basis, it is not normally done in this way. Explain the
usual manner in which this coverage is provided to business
owners. .....ANSWER..... CGL Policy or CGL Policy Endorsement
