CAIB 1 Practice 100 EXAM QUESTIONS

CAIB 1 Practice 100 EXAM QUESTIONS AND ANSWERS 100% score (Newest 2025) Consideration is...

• The law of insurance
• A promise between parties
• A contract's binding force
• An exchange of something of value - Correct Answers

✅d. An exchange of something of value A stock company is...

• A company that invests in other companies
• A company owned by stockholders who provide the capital

to start and run the company

• Is owned by customers of the company
• A company that owns livestock - Correct Answers ✅b. A

company owned by stockholders who provide the capital to start and run the company The difference between pure and speculative risk is...

• Speculative risk is insurable but pure risk is not 1 / 3

CAIB 1 Practice 100 EXAM QUESTIONS AND ANSWERS 100% score (Newest 2025)

• Speculative risk means that there is a chance to gain or

lose whereas one can only lose with pure risk

• Speculative risk means that there is only the chance to

lose whereas pure risk means you have a chance to win too

• Speculative risk is a term invented by marine insurance

companies in 1864 - Correct Answers ✅b. Speculative risk means that there is a chance to gain or lose whereas one can only lose with pure risk A legally enforceable agreement between 2 or more parties is defined as...

• A contract
• An agreement
• A will
• A contract of consideration - Correct Answers ✅a. A

contract What are the 4 methods of dealing with risk? - Correct Answers ✅Avoidance, control, retention, transfer 2 / 3

CAIB 1 Practice 100 EXAM QUESTIONS AND ANSWERS 100% score (Newest 2025) A reduction in value is called a...

• Loss
• Unlucky situation
• Claim
• Transfer - Correct Answers ✅a. Loss

What elements must be present to constitute a legal contract?

• Parties to the contract, the contract itself, consideration
• Parties to the contract, a written document, consideration,

and legal purpose

• Agreement, consideration, legality of object, legal capacity,

genuine intention

• Competent parties, consideration, warranty, and legal

purpose - Correct Answers ✅c. Agreement, consideration, legality of object, legal capacity, genuine intention The act of intentionally giving up some right or privilege is...

• A representation
• / 3