Caib 2 Exam Questions With 100% Correct Answers 2023-2024, Exams of Advanced Education

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Caib 2 Exam Questions With 100%

Correct Answers 2023-

Scheduled Coverage - Correct Answer-Refer to policy on which coverage is provided only on that property which is specifically identified or scheduled Property of Every Description - Correct Answer-Refers to policy used to insure buildings, stock and equipment under a single limit of insurance All Property (Blanket) - Correct Answer-A policy which under all property owned by the insured is covered or "blanketed" by a single limit of insurance Tenant Improvement - Correct Answer-Building improvement, alteration and betterment made at the expense of or purchased by the insured to a building occupied by the insured and which are not otherwise insured, providing the insured is not the actual owner of the building Actual Cash Value - Correct Answer-The replacement or repair cost less depreciation Replacement Value - Correct Answer-Represents the cost to repair, replace or rebuild the lost of damaged property without deduction for depreciation ( KEY DIFFERENCE - DEDUCTION WITHOUT DEPRECIATION) Reinsurance - Correct Answer-involves the insurer ceding of part of the risk it has assumed to one or more other insurers (insurers sharing of the policy betw insurers) Subscription - Correct Answer-An insurance policy under which a group of insurers has agreed to participate in providing policy insurance coverage (brokers sharing the policy among in insurers Conditions - Correct Answer-Something imposed by the insurer which requires the insured to do or not do something Subrogation - Correct Answer-Refers to the right of the insurer to "step into the shoes" of the party whom it has compensated and sue any party whom the compensated party could have sued Warranty - Correct Answer-A promise that a certain fact areas they are represented to be and that they will remain so (promise represented to be and remain so)

Material Fact - Correct Answer-Fact which communicated to the insurer would induce it either to decline the insurance altogether, or not accept it unless a higher premium is paid Fraudulent - Correct Answer-To act willfully, and with the specific intent to deceive or cheat Void Contract - Correct Answer-One which has NO "LEGAL OR BINDING FEE" and as such, "is incapable of being enforced bylaw" Fire Resistive - Correct Answer-Building which have met minimum standards in terms of hours it will withstand a specific, carefully controlled test fire Non-Combustible - Correct Answer-All structural members, including floors, roofs, and their supports are constructed of steel, tron, concrete or other noncombustible materials. Fall just short of fire resistive. Common Hazards - Correct Answer-conditions common to all buildings which influence their potential for loss Detachment - Correct Answer-Refers to the proximity of the building insured or containing the property insured to other commercially rated buildings Adverse Selection - Correct Answer-Occurs when the applicants for insurance are largely those most likely to suffer a loss Risk Classification - Correct Answer-refers to the grouping or classifying of risks according to established criteria which, in large part, is based on their probability for loss as a class Soft Market - Correct Answer-Characterized by intense competition betw insurers resulting in low rates and broader coverages Hard Market - Correct Answer-Occurs when low profit margins force out some of the competition resulting in a more disciplined underwriting approach where insured receive little or nothing in rate discount Hazard - Correct Answer-A condition which may cause a peril to occur

Physical Hazard - Correct Answer-Conditions relating to the use of tangible property which could cause a peril to occur Moral Hazard - Correct Answer-Subjective characteristics of the applicant that could cause a peril to occur Accommodation Business - Correct Answer-Business which is marginal or substandard but which the insurer agrees to accept as a favor or accommodation to the broker Supporting Business - Correct Answer-Existence of other insurance policies the applicants has with the same insurer ( the client has other policies insured with the insurer) Vacant - Correct Answer-Empty, or when the normal occupant is absent and the contents removed (NO CONTENT) Unoccupied - Correct Answer-Lack of habitual presence of human beings or then premises are complete with its contents, except that such person who normally occupies the premisses is temp away. Loading - Correct Answer-An additional rate charged over and above the fire rate Centrifugal Force - Correct Answer-The inertia of a body that tends to move it away from the centre around which it revolves Mechanical Breakdown - Correct Answer-A failure in the working mechanism of the machinery..... a functional defect in the moving parts of the equipment which causes the latter to cease function or to function improperly Electrical Breakdown - Correct Answer-Failure in the electrical mechanism of the machinery, appliance or device Trade Losses - Correct Answer-Types of losses which might be expected as a part of the every day operation of a business Wear and Tear - Correct Answer-Deterioration or depreciation in value by ordinary and reasonable use of the

subject matter Gradual Deterioration - Correct Answer-Deterioration of an object which arises naturally over time Latent Defect - Correct Answer-Hidden or concealed defect. One which could not be discovered by reasonable and customary inspection. A defect not apparent on the face of the goods Inherent Vice - Correct Answer-Something within a commodity, or other kind of property, that cause its demise over time Mysterious Disappearance - Correct Answer-Disappearance under circumstance which cannot be explained Endorsement - Correct Answer-Changes the terms and conditions of the policy Rider - Correct Answer-Adds additional coverages to those already in place Media - Correct Answer-Materials such as diskettes, tapes, punch cards and compact disks upon which data is stored Data - Correct Answer-Information stored on media Temporary Location - Correct Answer-Location not specified on the policy which is not owned, rented or controlled in whole or in part by the insured Newly Acquired Location - Correct Answer-Location acquired by the insured for a period of 30 days of acquisition Replacement Cost - Correct Answer-Cost of repairing or replacing the property of the same site with new property of like kind and quality and for like occupancy without deduction for depreciation Bailee for hire - Correct Answer-One 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 Common Carrier - Correct Answer-Includes airlines railroads, trucking companies and others that furnish transportation to any member of the public seeking their services

Standing (ordinary) Bill of Lading - Correct Answer-Bill of lading used to reflect the amount for which the common carrier will be held legally liable under the tariff Valued Bill of Lading - Correct Answer-Serves to increase carrier's liability - normally requested by the owner of goods when their value exceeds the value stated in the standard bill of larding Released Bill of Lading - Correct Answer-Bill of Lading used to release a carrier from any liability for the goods being transported Contract Carrier - Correct Answer-One that carries, for pay, the goods of certain customers only as contrasted to a common carrier that carries the good of public in general Private Carrier - Correct Answer-one who hauls their own goods or good entrusted to them as a bailee or lessees and included shippers who owns or lease their vehicles and carry their own goods Catastrophe Limit - Correct Answer-Maximum amount an insurer will pay in only one disaster or occurrence Physical Protection - Correct Answer-Physical Protection is concerned with setting up physical barriers to restirct unauthorized access to property Electronic Protection - Correct Answer-Electrical protection is concerned with setting up electronic barriers to restrict unauthorized access to property Perimeter Protection - Correct Answer-refers to methods used by owner to secure access to the premises when the business is closed Area Protection - Correct Answer-Refers to the protection provided to area within the building where valueable property is being stored Point Protection - Correct Answer-Provides direct security for individual items such as safes, vaults, chest, filing cabinets, display cases or expensive equipment

Line Security - Correct Answer-Refers to the ability of a telephone line to withstand tampering Money - Correct Answer-Currency and coins in current use and having a face value Securities - Correct Answer-Means all negotiable and non negotiable instruments or contracts representing money or other property and includes stamps in current use, tokens and tickets but does not included money Burglary - Correct Answer-The unlawful taking of property by a person unlawfully entering or leaving the premises as evidenced by marks of forceable entry or exit Robbery - Correct Answer-Taking of insured property from a custodian by a person who has Caused Harm, commited, taken such and rendered. Custodian - Correct Answer-Includes the insured, their partners or any employee authorized by them to have the care and custody of the insured property Theft - Correct Answer-Includes all means of take property without the owner's consent Employee Dishonesty - Correct Answer-Loss which the insured shall sustain resulting directly from one or more fraudulent or dishonest acts committed by an employee, acting alone or in collusion with others. Discovery Period - Correct Answer-Time permitted by an insurer, commencing with the expiry date of the policy, in which a claim must be discovered by the insured if it is to be covered by the policy Messenger - Correct Answer-The insured or a partner of the insured or any employee who is duly authorized by the insured to have the care and custody of the insured property outside the premises Forgery - Correct Answer-A person is guilty of forgery if he fraudulently alter any writing of another without his authority or makes, completes, executes, authenticates, issues or transfers any writing so it purprts to be the act of another who did not authorize that act Income - Correct Answer-Includes all monies from sales or services rendered by a business

Fixed Expense - Correct Answer-Those expenses that continune during the period of interruption Semi variable Expenses - Correct Answer-Those expenses which may or may not continue during the period of interruption Gross Profit - Correct Answer-Sum produced by adding to the net profit all insured standing charges Net Profit - Correct Answer-Gross profit less all other expenses incurred by the business Actual Loss Sustained - Correct Answer-The measure of recovery under the Gross Earnings Form - refer to the amount the business would actually have earned had the loss not occurred Ordinary payroll Expense - Correct Answer-is the entire payroll expenses for all employees of the insured, except officers, directors and other important employees whose services would not be dispensed with should the business be interfered or interrupted Contributing Properties - Correct Answer-The manufacturer or supplier upon whom the insured depends for materials or goods Recipient Properties - Correct Answer-The customer who the insured depends upon to purchase its products