CAIB 2 Final Exam Practice Test 2024-2025, Exams of Refrigeration and Air Conditioning

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CAIB 2 Final Exam Practice Test 2024-2025.

Questions and Correct Verified Answers. Graded

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A common carrier is not liable to the owners of goods being transported by it for the following loss: (pick the correct answer) A) spoilage of goods caused by the failure of refrigeration equipment attached to transporting conveyance. B) inherent vice in goods being transported. C) damage to goods caused by an accident involving the transporting conveyance. D) a delay in shipment causing spoilage due to stock being misdirected by the carrier at the point of shipment. - ANSB) inherent vice in goods being transported. All of the following characteristics except one, are common to Boiler and Machinery policies. Pick the exception. A) insures objects against accidents. B) excludes coverage for mechanical or electrical breakdown. C) coverage is provided on a limit per accident basis. D) insurer retains the right to suspend coverage immediately on any object judged to be in a dangerous condition. - ANSB) excludes coverage for mechanical or electrical breakdown. All of the following statements are true when coverage is provided due to the insureds business being interrupted by order of civil authority, except one. Pick the exception. A) insureds building must suffer physical damage. B) coverage is limited to a maximum of two weeks. C) insured is entitled to recover lost income even though there has been no actual damage to property insured under policy.

D) order must have been given as a direct result of damage to neighbouring premises by a peril insured against under the insureds own policy. - ANSA) insureds building must suffer physical damage. An electronic data processing policy includes coverage for software. What two specific items are insured within the coverage provided for software? - ANS1. Data.

2. Media. Both the owner and carrier have a financial interest in property while in transit. What two factors should be considered in determining who should purchase coverage on a particular shipment? - ANS1. Whether the owner or the carrier would be responsible for the loss of the property.
3. To what extent they would be responsible. Common carriers are liable to owners for the safe delivery of goods entrusted to them. Provide two exceptions to this general rule. - ANS1. Acts of god reasonably foreseeable.
4. Neglect or default of the shipper. Define "Bailee for Hire" - ANSOne 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. Define common carrier - ANSIncludes airline, railroads, trucking companies, and others that furnish transportation to any member of the public seeking their services. Define contributing property - ANSManufacturer or supplier upon whom the insured depends for materials or goods. Define discovery period. - ANSTime 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. Define Loading - ANSAdditional rate charged over and above the fire rate. Glitters jewelry store incorporated is equipped with sophisticated burglary detection equipment. It also subscribes to the services of an alarm control Center providing the highest level of supervisory service today is:

A) digital communicator service B) monitoring station service C) emergency station service D) central station service. - ANSD) Central station service How do common carriers limit the amount of their liability to the owners of the property? - ANSBills of lading are used to limit liability of common carriers. How is an "occurrence" defined under an earthquake endorsement? - ANSOccurrence under earthquake endorsements are defined as all earthquake shocks in any 72 hour period. Hunt operates a gun shop out of rented premises at a local mall. While retail gun sales account for the majority of the stores income, the business earns approximately $50,000 a year from gun repairs. Mr Hunt carries $80,000 of insurance on stock. i) the definition of stock contained on mr hunt's policy provides limited coverage for similar property belonging to customers (ex. Customers guns left on premises for repair) explain the circumstances that must be present before the stock coverage purchase by mr. hunt would respond to pay for loss to guns belonging to his customers. - ANS1. Client must be legally liable for loss to customers property.

2. Client must be legally obligated to insure customers property. Identify 3 coverages provided by the accounts receivable form. - ANS1. Amounts not recoverable due to insured loss to accounts receivable records.
3. Interest on loans to offset amounts not collectible due to insured loss to accounts receivable records.
4. Extra collection expenses incurred like hiring of collection agencies and overtime salaries paid to employees to attempt collection of accounts receivable. Justin case owns and operates a flower and gift shop in the downtown business district. Building, stock and equipment values are insured under the commercial building, equipment and stock - broad form policy. Indicate whether the losses caused by the following perils would be covered by the policy. State whether covered or not covered.

A) breakdown of compressor motor on main refrigeration unit. B) loss to stock and equipment caused by explosion of steam boiler on the premises C) damage to building from seepage of ground water through basement walls. - ANSA) breakdown of compressor motor on main refrigeration unit. - not covered. B) loss to stock and equipment caused by explosion of steam boiler on premises - covered C) damage to building from seepage of ground water through basement walls - not covered. Mr hunt has requested that a number of property items be added to his existing policy. Indicate whether the following would be either: a) building b) stock c) equipment 1)Packing and wrapping materials -$500.

2. wall panelling and lighting fixtures installed on the premises - $3100.00 - ANS1. Packing and wrapping materials - stock

2. Wall panelling and lighting fixtures installed on the premises - equipment. Not everyone is qualified to be a custodian. Identify 2 persons who would qualify as custodians of insured property. - ANS1. Insured or their partners.
3. Employees authorized to have possession of insured property. Replacement cost will only be provided after the insured fulfils certain obligations under the policy. Identify 3 things the insured must do to qualify for settlement of a building claim on a replacement cost basis. - ANS1. Building must be repaired with due diligence and dispatch.
4. Building must be replaced on same or adjacent site.
5. Building replacement must actually be effected by insured not exceeding amount necessary to replace building. The builders risk broad form can be used to insure all of the following property items at the project site, except one. Pick the exception.

A) all materials and supplies to enter into and form part of the completed project. B) growing trees, plants, shrubs, and flowers. C) temporary office used by the contractor. D) contractors tools and equipment. - ANSD) contractors tools and equipment. The safe burglary rider would pay for the following loss: A) money taken from a locked cash drawer. B) money and securities taken from an unlocked safe. C) money and securities taken from a locked safe by a burglar who knew the combination of the safe. D) removal of the safe from the premises - ANSD) removal of the safe from the premises What advantage does the "occurrence" definition under earthquake have for the insured? - ANSOnly one deductible will be applied to all damage caused by earthquake shocks occurring in any 72 hour period. What is the period of indemnity provided under the gross earnings endorsement form (manufacturing or non manufacturing?) - ANSPeriod of indemnity with gross earnings form begins with date of destruction of damage and ends as soon as damaged property is restored. When there is a loss to customers property, the property of others clause contained in the policy outlines the payment options available to the insurer. Identify the 2 payment options available to the insurer under this clause. - ANS1. Insurer may make claim payment to the insured

2. Insurer may make claim payment to the owner of the property.