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CAIB 2 Full Study Guide Questions with Solutions
1. The three amounts to be considered when calculating the amount of
payment
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)
5)
Fixed
structures
PERTAINING
to
building
and
located
on
the
premises
(ex.
fence)
[GMAPF]
6. Identify the three conditions pertaining to the coverage for growing
plants,
trees, etc.: - such property was INSIDE the building
