CAIB 1 Samenvattingen, Aantekeningen en Examens

CAIB 1 Practice Exam | 100% Correct Answers | Verified | Latest 2024 Version Insurers are in the business of assuming the financial risks of others which involves entering into a formal contract. A contract is enforceable at law only when all legal elements have been observed. Insurance contracts differ from other formal agreements and are subject to what three additional elements? - Insurable Interest Utmost Good Faith Indemnity Explain the meaning and disadvantage of the following ap...

CAIB 1 Practice Exam (Multiple Choice) Questions and Answers 100% Pass All of the following factors except one are used to determine the ACV of insured property. Pick the exception. A - condition of the object. B - sentimental value. C - re-sale value. D - normal life expectancy - Answer- B - sentimental value. The Indemnity Agreement in property insurance policies states that in the event of a loss, the insurer will pay the lesser of three amounts in the event of a claim. One factor w...

Caib 1 Chapter 1 questions / definitions with 100% correct answers Identify 4 possible options to deal with Risk , describe each - Answer- Control the Risk ( loss control measures) Avoid the Risk ( rent Rather than buy ) Retain the risk ( self insurance or share risk through deductibles) Transfer the Risk ( purchase insurance ) Out of the 4 means of managing risk, which is the most practical? - Answer- Transfer of Risk Identify the 5 elements required in all types of contracts - Answer-...

CAIB 1 / CH 1 / SEC 1 / STUDY GUIDE 2024 QUESTIONS WITH COMPLETE SOLUTIONS Define in pure insurance terms "risk" - Answer- The chance of financial loss to which an object of insurance is exposed List the 3 categories of risk generally faced by people - Answer- Personal Risk; Property Risk; Liability Risk State 4 possible options people can choose to deal with risk - Answer- Avoidance of Risk; Controlling Risk; Retention of Risk; Transfer of Risk Give a brief explanation and example of ...

CAIB 1 Exam Questions and Answers 100% Verified Risk - Answer- the chance of financial loss to which an object of insurance is exposed Speculative Risk - Answer- possibility of financial loss or gain Pure Risk - Answer- Chance of financial loss, no gain Insurance - Answer- undertaking by one person to indemnify another person against loss or liability for loss in respect of a certain risk or peril to which the object of insurance may be exposed or to pay a sum of money or other ting of val...

CAIB 1-Chapter 1 Practice Questions and Answers 100% Pass RISK - Answer- Chance of financial loss to which an object of insurance is exposed SPECULATIVE RISK - Answer- the chance of financial loss or gain PURE RISK - Answer- the chance of financial loss but no chance of financial gain INSURANCE - Answer- the undertaking by one person to indemnify another person against loss or liability for loss in respect of a certain risk or peril to which the object of the insurance may be exposed...or...

CAIB 1 CH1 (Discussion Questions) with 100% Correct Answers 100% Pass A broker friend told you that she recently sold a Tenants' Package Policy to a 16 year old who was attending university. It is your understanding that minors cannot enter into contracts for things not deemed to be the "necessities of life." What position does the law take regarding the enforceability of insurance contracts entered into by minors? - Answer- The law recognizes that such persons are not entitled to enter...

CAIB 1 - Chapter 1 Practice Questions and Answers 100% Correct Define "Risk" - Answer- The chance of a financial loss to which the object of insurance may be exposed to List 3 Categories of Risk - Answer- 1) Personal 2) Property 3) Liability List 4 Types of Risk Management Techniques - Answer- 1) Risk Avoidance 2) Risk Retention 3) Risk Control 4) Risk Transfer Define "Risk Avoidance" - Answer- To avoid doing something in order to eliminate the chance of risk Define "Risk Retention...

CAIB 1 - Chapter 6 Practice Questions and Answers 100% Pass What types of claims are paid out under Death & Injury - Answer- court awards to innocent victims and their families, death benefits and funeral expenses, medical payments, rehabilitation costs, loss of income What types of claims are paid out under Damage to Property - Answer- Collision, Comprehensive Why is auto insurance compulsory in all provinces? - Answer- It is unlikely that people would voluntarily purchase insurance thu...

children's playgrounds or outdoor swimming pools (above & below ground). Coverage is also provided for materials and supplies located adjacent to the premises that are intended for use in the construction or repair of the insured dwelling (True or False) There is no coverage for outdoor trees & shrubs when damaged by wind or hail - Answer- True Explain Coverage B - Detached Private Structures - Answer- Provides coverage for any structure or building that is separated from the dwelling by ...