CAIB 2 Chapter 5 Practice Test 1 Latest Questions & Answers 2024/2025, Exams of Insurance law

Download CAIB 2 Chapter 5 Practice Test 1 Latest Questions & Answers 2024/2025 and more Exams Insurance law in PDF only on Docsity! CAIB 2 Chapter 5 Practice Test 1 Latest Questions & Answers 2024/2025 Define Bailee for Hire. - ANS-Person or organization who has temporary custody of the personal property of another for a purpose other than sale and who is compensated as a condition of such custody Identify three types of Bailees and provide an example of each. - ANS-i) Repair of personal property example: Television repair shop ii) Storage of personal property example: Public storage warehouse iii) Delivery of personal property example: Courier service Define Ordinary Care. - ANS-Requirement to take the same care of the goods of others as would be taken by a prudent and diligent owner of such goods When could bailees be responsible for damage to customer's property? - ANS-Bailees may be responsible for damage to customer's property when negligent in common law or in contract Other than stock coverage found on Bailee's commercial property policies, what are two other policies that could be used to insure customer's property? - ANS-i) Separate policy covering legal liability of bailee ii) Specialized policy insuring customer's property which ignores requirement for legal liability By knowing answers to certain questions, brokers should understand whether the carrier or the owner of property should purchase insurance when selling Inland Transportation Insurance. What are these questions? - ANS-i) Who would be responsible for loss to property ii) What is the extent of responsibility Define Common Carrier. - ANS-Common carriers are those transportation companies that will provide transportation services to any person needing their services What is the general rule regarding the responsibility of common carriers? - ANS- Common carriers are responsible for the safe delivery of property in their care Common carriers will not be held responsible for all losses to goods in their possession. Identify five of these losses. - ANS-i) Acts of God reasonably foreseeable ii) Acts of public enemies iii) Acts of public authority iv) Neglect or default of shipper v) Inherent vice of property transported What documents are used by common carriers to limit their liability to owners? - ANS- Bills of lading Describe a Released Bill of Lading. - ANS-Released Bills of Lading removes carrier from any responsibility for the shipment Define a Contract Carrier. - ANS-Contract carriers will carry the goods of contracted customers only, unlike common carriers that will carry anybody's property Define a Private Carrier. - ANS-Private carriers carry their own goods or goods given to them as baliees When property is insured by a Transportation Floater Broad Form, when does coverage begin and when does coverage end? - ANS-Coverage begins when property leave premises and continues until property is unloaded at final destination When would insureds purchase a Trip Transit Policy? - ANS-When clients only require coverage for a single shipment What is a Catastrophe Limit and why is it used? - ANS-Catastrophe limits are the most an insurer will pay in any one occurrence of loss. Insurers, to limit coverage in large losses, use catastrophe limits. What are four problems which could occur when owners rely on carrier's insurance? - ANS-i) Carriers may not have amounts of coverage needed to properly insure customer's property ii) Carriers may have limited perils insured iii) Carriers may have violated policy condition which negates coverage iv) Carriers may not have renewed policy or may have cancelled policy