CAIB 2 EXAM NEWEST ACTUAL

CAIB 2 EXAM NEWEST ACTUAL

EXAM COMPLETE 200 QUESTIONS

AND CORRECT DETAILED

ANSWERS (VERIFIED ANSWERS)

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QUESTION 1: Identify 4 categories that buildings may fall

into and give an example of each

CORRECT ANSWER :

• Residential (homes)
• Mercantile (hospital)
• Non-mercantile (stores)
• Manufacturing/industrial (manufacturing plants)

QUESTION 2: Identify two bases that coverage can be

provided

CORRECT ANSWER :

• Scheduled basis
• All property basis

QUESTION 3: Briefly explain how the scheduled basis and

all property is identified

CORRECT ANSWER :

• Scheduled basis - only property which is specifically

identified or scheduled on the policy is insured

• All property - All property owned by the insured is covered

by a single limit of insurance. Usually subject to a minimum 90% co-insurance clause

QUESTION 4: 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

CORRECT ANSWER :

• Fixed structures; pertaining to the business and located on

the property (fencing, yard signs, lights)

• Additions and extensions; in contact with the building

(enclosed walkways, lean-to storage)

• Permanent fittings & fixtures attached to or forming part of

the building (heating, plumbing, carpeting)

• Materials, equipment, supplies used for maintenance

• Growing plants, trees, shrubs, flowers; inside the insureds

building for decorative purposes when insured is owner

QUESTION 5: Identify the three conditions pertaining to the

coverage of growing plants, trees, etc

CORRECT ANSWER :

• Such property was inside the building
• It was being used for decorative purposes
• The insured was the owner of the building

QUESTION 6: Identify and give an example of each of the

three types of property contained in the definition of Stock found in the IBC Commercial Property Broad Form

CORRECT ANSWER :

• Merchandise of every description usual to the insureds

business; goods held for sale

• Packing, wrapping, & advertising materials; bubble wrap,

flyers or catalogues

• Similar property belonging to others which the insured is

under obligation to keep insured or which he is legally liable; consignment goods or tv repair shop

QUESTION 7: Identify three conditions that need to be

present before "similar property belongings to others" will be insured under the definition of stock

CORRECT ANSWER :

• Property lost or damaged must be similar that insured is

insured by the policy

• The insured must have had an obligation to keep the

property insured

• The insured must have been legally liable for it

QUESTION 8: Identify and give an example of each of the

three types of property contained in the definition of equipment found in the IBC Commercial Property Broad Form

CORRECT ANSWER :

• All contents usual to insureds business including furniture,

furnishings, fittings other than building or stock