1
/
73
CAIB 2 Full Study Guide exam question
updated version
1. The three amounts to be considered when calculating the amount
of pay-
ment as outlined in the Indemnity Agreement are:: 1) the value of the
lost or damaged
property (ACV)
2)
the
interest
of
the
insured
in
the
property
(ex.
financial
interest,
home,
mortgage)
3)
the
amount
of
insurance
specified
on
the
"Declarations
Page"
for
the
loss
or
damaged
property
(least
amount|)
2.
Identify the four categories that buildings may fall into:: Residential (ex.
home)
Non-mercantile (ex. hospitals, nursing homes)
Mercantile (ex. drycleaners, bakeries)
Manufacturing/Industrial (ex. autobody
shops)
3.
Three classes of property commercially insured are:: building, stock,
equipment
4.
Identify
the
two
bases
that
coverage
can
be
provided
on::
Scheduled
All
property
Property
of
every
description
5.
Identify and give an example of each of the five types of property
contained in
the
definition
of
Building
found
in
the
IBC
Commercial
Property
Broad
Form:
1) Growing plants, trees, shrubs INSIDE the building used for decorative
purposes only when insured is
the owner of the building (ex. cactus)
2)
Materials
and
equipment
supplies
ON
the
premises
for
maintenance
(ex.
lumbar,
glass)
3)
Additions
and
extensions
IN
CONTACT
with
the
building
(enclosed
walk-way
between
buildings)
4)
Permanent
fittings
and
fixtures
ATTACHED
and
FORMING
part
of
the
building.
(ex.
light
fixtures,
carpeting)
