CAIB 2 -Terms and Definitions Questions & Answers(RATED A)
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Course
CAIB 2 -
Institution
CAIB 2 -
Scheduled Coverage - ANSWERrefers to policy on which coverage is provided only on that property which is specifically identified or scheduled
All Property - ANSWERrefers to policy used to insure building, equipment and stock under a single limit of Insurance
Tenants Improvement - ANSWERbuildi...
CAIB 2 -Terms and Definitions
Questions & Answers(RATED
A)
Scheduled Coverage - ANSWERrefers to policy on which coverage is provided only on that property
which is specifically identified or scheduled
All Property - ANSWERrefers to policy used to insure building, equipment and stock under a single
limit of Insurance
Tenants Improvement - ANSWERbuilding 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 - ANSWERthe replacement or repair cost less depreciation
Replacement Value - ANSWERrepresents the costs to repair, replace or rebuild the lost or damaged
property without deduction for depreciation
Reinsurance - ANSWERinvolves an insurer to cede part of the risk it has assumed to one or more
other insurer
Subscription - ANSWERan insurance policy under which a group of insurers has agreed to participate
in providing policy insurance coverages
Condition - ANSWERis something that imposed by the insurer that requires the insured to do or not
to do something
Subrogation - ANSWERrefers 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
, Soft Market - ANSWERcharacterized by intense competition between insurers. As a result, rates tend
to be low
Hard Market - ANSWERoccurs when low profits margins force out of the competition, as a result,
insurers use a more disciplined underwriting approach which gives to the insured little or nothing in
the way of rate discounts
Hazard - ANSWERis a condition which may cause a peril to occur
Physical Hazard - ANSWERa condition relating to the use of tangible property which could cause a
peril to occur
Moral Hazard - ANSWERsubjective characteristics of the applicant that could cause a peril to occur
Morale Hazard - ANSWERdeals with the attitude of the client
Accommodation Business - ANSWERbusiness which is marginal or substandard but which the
insurers agrees to accept as a favour or accommodation to the broker
Supporting Business - ANSWERthe existence of other insurance policies the applicant has with the
same insurer
Centrifugal Force - ANSWERthe inertia of a body that tends to move it away from the centre around
which it revolves
Mechanical Breakdown - ANSWERa failure in the working mechanism of the machinery. A functional
defect in the moving parts of the equipment which causes the latter to cease functioning or to
function improperly.
Electrical Breakdown - ANSWERa failure in the electrical mechanism of the machinery, appliance or
device
Trade Losses - ANSWERthe types of losses which might be expected as a part of the every day
operation of a business
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