CAIB 2 -Terms and Definitions
Scheduled Coverage Answer - refers to policy on which coverage is provided only
on that property which is specifically identified or scheduled
All Property Answer - refers to policy used to insure building, equipment and stock
under a single limit of Insurance
Tenants Improvement Answer - building improvements, alteration and betterments
made at expense of or purchased by the insured to a building occupied by the
insured and which are not otherwise insured, provided the insured is not actual
owner of such building
Actual Cash Value Answer - the replacement or repair cost less depreciation
Replacement Value Answer - represents the costs to repair, replace or rebuild the
lost or damaged property without deduction for depreciation
Reinsurance Answer - involves an insurer to cede part of the risk it has assumed to
one or more other insurer
Subscription Answer - an insurance policy under which a group of insurers has
agreed to participate in providing policy insurance coverages
Condition Answer - is something that imposed by the insurer that requires the
insured to do or not to do something
Subrogation 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 Answer - is a promise that the certain facts are as they are represented to
be and that they will remain so.
Material Fact Answer - a fact which if communicated to the Insurer would effect it
ether to decline the insurance all together, or not accept it unless higher premium is
paid
Fraudulent Answer - to act wilfully and with specific intent to deceive or cheat
