CAIB 1 Study guides, Class notes & Summaries

What are 3 actions which demonstrate a brokers unethical conduct? to sell more insurance than is needed, to sell higher priced coverages when equivalent coverage is available for a lower price, to recommend policies with a higher commission. What are 3 qualities of a professional? commitment to higher ethical standards, have a high standard of educational preparedness with mandatory continuous education, have a formal association regulating power over its members What responsibilities do b...

Define in pure insurance terms "risk" The chance of financial loss to which an object of insurance is exposed List the 3 categories of risk generally faced by people Personal Risk; Property Risk; Liability Risk State 4 possible options people can choose to deal with risk Avoidance of Risk; Controlling Risk; Retention of Risk; Transfer of Risk Give a brief explanation and example of Avoidance of Risk When chance of financial loss is eliminated. (Ex. People who rent rather than purchase t...

What are the 3 types of Homeowners Forms? 1. Homeowners Basic 2. Homeowners Broad 3. Homeowners Comprehensive Who develops insurance forms? Insurance Bureau of Canada What types of risks are now eligible for coverage? Dwellings containing more than one family, Insureds who own more than one dwelling, Mobile homes on full basements, dwellings in course of construction

Define "Risk" The chance of a financial loss to which the object of insurance may be exposed to List 3 Categories of Risk 1) Personal 2) Property 3) Liability List 4 Types of Risk Management Techniques 1) Risk Avoidance 2) Risk Retention 3) Risk Control 4) Risk Transfer Define "Risk Avoidance" To avoid doing something in order to eliminate the chance of risk Define "Risk Retention" To self-insure or to pay for losses themselves

RISK Chance of financial loss to which an object of insurance is exposed SPECULATIVE RISK the chance of financial loss or gain PURE RISK the chance of financial loss but no chance of financial gain

Risk the chance of financial loss to which an object of insurance is exposed Speculative Risk possibility of financial loss or gain Pure Risk Chance of financial loss, no g

Consideration is... a. The law of insurance b. A promise between parties c. A contract's binding force d. An exchange of something of value d. An exchange of something of value A stock company is... a. A company that invests in other companies b. A company owned by stockholders who provide the capital to start and run the company c. Is owned by customers of the company d. A company that owns livestock b. A company owned by stockholders who provide the capital to start and run the comp...

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 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 which does not enter into this calculation is A - the actual cash value of the prop...

Your clients suffered a fire loss totalling $87,555. When making the proof of loss, they claimed $1,500 for a stereo unit which they never owned. In the event that the fraud is discovered by the insurer, what portion of the claim, if any, is required to be paid under policy? When the insurer is able to prove fraud, it is entitled to deny the entire claim, and not just that part which was fraudulent. (1 mark The insurer always has the right to decide on how the claim will be settled. It may ...

Who is responsible for the administration of the insurance act in your province? MB Government Outline the initial licensing requirements, whether there are different levels of licenses, the supervision requirements, and license terms in your province. Insurance license required. CAIB 1 with supervision Outline the class of license issued in our province and whether this license would be valid in other provinces. CAIB, this is transferable to other provinces Define "Ethics the principles...