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CAIB 2 Full Study Guide / Comprehension Practice Questions / Study Guide Newest Actual Que, Exams of Nursing

CAIB 2 Full Study Guide / Comprehension Practice Questions / Study Guide Newest Actual Questions & Answers (A+ Guide Solution) Terms in this set (371) _____________Quiz____________? The three amounts to be considered when calculating the amount of payment as outlined in the Indemnity Agreement are: - Answer✓✓ 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|) _____________Quiz____________? Identify the four categories that buildings may fall into: - Answer✓✓ Residential (ex. home) Non-mercantile (ex. hospitals, nursing homes

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CAIB 2 Full Study Guide /
Comprehension Practice Questions /
Study Guide Newest Actual Questions
& Answers (A+ Guide Solution)
Terms in this set (371)
_____________Quiz____________?
The three amounts to be considered when calculating the amount of payment as outlined in the
Indemnity Agreement are: -
Answer
✓✓
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|)
_____________Quiz____________?
Identify the four categories that buildings may fall into: -
Answer
✓✓
Residential (ex. home)
Non-mercantile (ex. hospitals, nursing homes)
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CAIB 2 Full Study Guide /

Comprehension Practice Questions /

Study Guide Newest Actual Questions

& Answers (A+ Guide Solution)

Terms in this set (371) _____________Quiz____________? The three amounts to be considered when calculating the amount of payment as outlined in the Indemnity Agreement are: -

Answer ✓✓

  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|) _____________Quiz____________? Identify the four categories that buildings may fall into: -

Answer ✓✓

Residential (ex. home) Non-mercantile (ex. hospitals, nursing homes)

Mercantile (ex. drycleaners, bakeries) Manufacturing/Industrial (ex. autobody shops) _____________Quiz____________? Three classes of property commercially insured are: -

Answer ✓✓

building, stock, equipment _____________Quiz____________? Identify the two bases that coverage can be provided on: -

Answer ✓✓

Scheduled All property Property of every description _____________Quiz____________? 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 -

Answer ✓✓

  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)
  1. merchandise of every description USUAL to insureds business (ex. goods for sale for business)
  2. similar property belonging to others which the insured is under obligation to keep insured or for which he is legally liable for (appliance if appliance store. [PMS] _____________Quiz____________? Identify the three conditions that need to be present before 'similar property belonging to others' will be insured under the definition of Stock: -

Answer ✓✓

  1. must be similar to that insured by the policy
  2. the insured must have had an obligation to keep the property insured
  3. the insured must be legally liable for it. _____________Quiz____________? 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: -

Answer ✓✓

  1. generally all contents USUAL to insureds business, other than building or stock (ex. furniture)
  1. similar property belonging to others which the insured is under obligation to keep insured or for which he is legally liable for (ex. shaw cable box)
  2. tenants improvements (ex. space rented out or leased, malls) [GST] _____________Quiz____________? Identify the three ways in which property may be valued: -

Answer ✓✓

Actual Cash Value (ACV) Replacement Value Book Value _____________Quiz____________? Which way is NOT an appropriate means of valuing property for insurance purposes? -

Answer ✓✓

Book Value _____________Quiz____________? Identify the one word that can summarize the difference between Actual Cash Value and Replacement Cost: -

Answer ✓✓

depreciation

_____________Quiz____________? A licensed real estate appraiser will generally be consulted to provide an expert opinion when establishing Market Value/Direct Sales Approach. Identify the three items he or she may consider: -

Answer ✓✓

Property before the loss Property after the loss the land _____________Quiz____________? When is the Income Approach method most commonly employed? -

Answer ✓✓

This method of evaluating a loss is commonly used with income producing properties _____________Quiz____________? The Broad Evidence ties together the previous four methods when establishing actual cash value, and the courts will take into account many different factors. Identify any three such factors: -

Answer ✓✓

Market Value - assessed valuation Rental Value - use of building Location - resale success, replacement value less depreciation {any of these}

_____________Quiz____________? Insurers can reduce their amount of exposure on large risks by the use of Reinsurance or Subscription polies. Outline three rules, or guidelines that apply when reinsurance is used to provide insurance coverages: -

Answer ✓✓

  1. all insurers share premiums collected and losses incurred
  2. the policy is controlled by the primary insurer and all claims are paid by it
  3. the contract is between the primary insurer and the reinsurer _____________Quiz____________? Identify four instances when subscription policies may be issued: -

Answer ✓✓

  • the broker wants to spread a good large line of business among markets
  • the line of business is so SPECIALIZED, its not covered by the insurers treaty with its reinsurers
  • the type of risk is one which the insurer does not want to expose to its reinsurance treaties
  • the limits do not exceed insurers net retention limits but are beyond what it is prepared to pay in a single claim.

to ensure the costs of underwriting the policy can be recouped, at least in part. _____________Quiz____________? Identify the three amounts to be considered when calculating the amount of payment as outlined in the Indemnity Agreement: -

Answer ✓✓

  • the value of the lost or damaged property (ACV)
  • the interest of the insured in the property (ex. financial interest, home, mortgage)
  • the amount of insurance specified on the "Declaration's Page" for the lost or damaged property (least amount) _____________Quiz____________? What is the purpose of the deductible? -

Answer ✓✓

to eliminate minor maintenance types of claims _____________Quiz____________? Insurers agree to 'waive' any co-insurance requirement when a loss meets either of the following conditions: -

Answer ✓✓

2% or

$5,000 (up to) _____________Quiz____________? In order to replace a Co-Insurance Clause with a Stated Amount Co-Insurance Clause, the client must comply with the following: -

Answer ✓✓

  • files a Statement of Values with the insurer representing 100% of the value of all property insured, such as an appraisal
  • maintains these values throughout the term _____________Quiz____________? Identify the two types of exclusions found in property policies -

Answer ✓✓

properties excluded perils exluded _____________Quiz____________? Identify five reasons why exclusions exist and give an example for each: -

Answer ✓✓

  • some perils are uninsurable (war, nuclear energy)
  • potential to be catastrophic (earthquake, flood)

the Insurer may have grounds to deny coverage _____________Quiz____________? Identify two instances when an Insurer may NOT deny coverage when there has been a breach:

Answer ✓✓

  • the loss was not caused or contributed by the breach
  • the breach condition occurred in a portion of the premises over which the insured has no control _____________Quiz____________? Explain the effect of the Reinstatement clause: -

Answer ✓✓

The Reinstatement clause provides the insureds shall have as much insurance after a loss as they did before. _____________Quiz____________? Do all Insurers treat the issue of 'unearned premium' the same in the event of a total loss? -

Answer ✓✓

Some insurers are not willing to accept that the insureds should be entitled to a refund premium when they have collected for a loss under the policy.

_____________Quiz____________? Explain the operation of Subrogation: -

Answer ✓✓

it is the right of the insurer to sue the party at fault, after paying the claim to the injured party _____________Quiz____________? Identify two parties against whom the Insurer will NOT exercise Subrogation: -

Answer ✓✓

  • individuals
  • banks, trust companies _____________Quiz____________? Identify three types of Property Protection Systems: -

Answer ✓✓

  • sprinkler, or other fire extinguishing system
  • fire detection system
  • intrusion detection system _____________Quiz____________? Identify three obligations placed upon Insured who have installed any Property Protection Systems: -

Answer ✓✓

_____________Quiz____________? Identify three things the Verification of Values clause allows the |Insurer to do: -

Answer ✓✓

  1. allows the insurer THE RIGHT TO CONFIRM THE VALUES INSURED UNDER THE POLICY ARE REASONAABLE AND ACTUALLY EXIST
  2. permits the insurer THE OPPORTUNITY TO DETERMINE VALUES ON HAND AT THE TIME OF A PREVIOUS LOSS
  3. enables the insurer to DETERMINE THE EXISTENCE OF ANY OTHER POLICIES OF INSURANCE WHICH MIGHT BE CALLED UPON TO SHARE IN THE PAYMENT OF A LOSS. _____________Quiz____________? Identify under Basis of Valuations how losses will be paid on items of stock: UNSOLD & SOLD:

Answer ✓✓

UNSOLD: restricted to its "actual cash value at the time of a loss" SOLD: the selling price charged to the purchaser, less any discounts allowed. _____________Quiz____________? Identify three types of discounts that will be considered when adjusting loss on sold stock: -

Answer ✓✓

  1. picked up by purchaser
  2. trade-ins
  3. any reduction in selling price because of negotiation between seller and buyer _____________Quiz____________? Identify two types of property which are subject to a 'special basis of settlement': -

Answer ✓✓

  • tenants improvements
  • records _____________Quiz____________? Identify the liability of the Insurer when there is loss to tenants improvements: -

Answer ✓✓

  • if repaired or replaced with due diligence and dispatch
  • if not repaired with due diligence and dispatch, the insurer will pay according to the un-expiry of the LEASE. _____________Quiz____________? Identify the liability of the Insurer when there is loss to: a) Books of account kept on a manual system:
  1. the vehicle containing the property insured be equipped with a fully enclosed body or compartment
  2. the doors are securely locked and windows closed
  3. access or entry to the vehicle must have been gained through the use of force
  4. there must be visible evidence which confirms force _____________Quiz____________? Identify three breaches of good faith that would be considered contrary to Statutory Condition 1: (misrepresentation) -

Answer ✓✓

  • any false description of property to insurer
  • any misrepresentation of material fact
  • any fraudulant omission of material fact _____________Quiz____________? Give two samples of what courts have ruled to be material: -

Answer ✓✓

  • previous claims
  • vacancy
  • existence of other insurance
  • previous cancellations or refusals of insurance _____________Quiz____________? Identify five facts NOT deemed to be material: -

Answer ✓✓

Facts which are known or which may reasonably be presumed to be known by the Insurer; Facts which the Insurer can discover upon inquiry; Facts which the Insurer has waived the requirement for information; Facts which tend to lessen the risk; Facts which need not be disclosed by reason of a policy condition _____________Quiz____________? Explain the effect of Misrepresentation on an application for insurance: -

Answer ✓✓

if misrepresentation is proved, the insurer is entitled to void the contract _____________Quiz____________? Explain the effect of a 'reported' material change during the term of the policy: -

Answer ✓✓