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IBABC CAIB-3 Exam Syllabus Topics:

SectionObjectives
Topic 1: Risk Management and Underwriting- Commercial underwriting principles
- Risk identification and assessment
- Loss control and risk mitigation strategies
Topic 2: Commercial General Liability Insurance- CGL policy structure, coverages, and endorsements
- Legal perspective and liability exposures
Topic 3: Specialty Insurance Lines- Ocean Marine and Aviation Insurance
- Crime Insurance and Fidelity Coverage
- Surety Bonds
Topic 4: Commercial Automobile Insurance- Garage and fleet exposures
- Commercial auto policy forms and coverages

IBABC Canadian Accredited Insurance Broker (CAIB 3) Sample Questions:

Fred's Fried Things is a busy fast food business and has protocol in place to make sure they don't have too much cash on site, depositing it at the bank twice per day. Today, while taking the first deposit to the bank, the manager is robbed at gunpoint. Is there coverage available for this loss? Why or why not? (3 marks)

Reveal Solution  Discussion  0

Correct Answer:

See the answer in Explanation below.
Explanation:
Yes. This would be covered under Outside the Premises/Outside Robbery coverage. The manager is a custodian carrying the business money to the bank, and the money was taken by robbery at gunpoint. The loss would be covered subject to the policy limit and deductible.
Reference: CAIB 3 Training & Study Pack - Crime Insurance: Outside the Premises/Outside Robbery coverage and custodian.

There are many details required by underwriters for cyber insurance. Name six (6) of those details required. (3 marks) See the answer in Explanation below.

Reveal Solution  Discussion  0

Correct Answer:

Six details an underwriter may require are:
1. Type and size of the business.
2. Annual revenue.
3. Type and amount of confidential or personal data stored.
4. Computer and network security controls.
5. Backup and disaster recovery procedures.
6. Past cyber incidents or claims.
Reference: CAIB 3 Training & Study Pack - Cyber Insurance: underwriting information and cyber controls.

What are incoterms? Choose the best option below. (1 mark)

  • A. A standard set of terms used to define key aspects of freight forwarding.
  • B. A standard set of terms defining harbors and destinations.
  • C. A standard set of terms used to define ownership of property.
  • D. A standard set of terms defining responsibility during loading and offloading.
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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DEFINE: PARTICULAR AVERAGE (1 mark)

Reveal Solution  Discussion  0

Correct Answer:

See the answer in Explanation below.
Explanation:
Particular average is a partial loss to a specific marine shipment caused by an insured peril, other than a General Average loss.
Reference: IBAC CAIB 3 Student Resource Guide (2013), Chapter 4 - Marine Insurance, Particular Average, reference p. 4-16.
==============

Your client chartered a boat to transport some goods. While parked at the terminal overnight, some thieves went aboard and stole some cargo. Upon investigation, it looks like the terminal's security was negligent, allowing the thieves to easily enter the premises.
A) Which liability insurance will cover this loss? (1 mark)
B) Your client is adamant that they should not be responsible. They want to sue - who can they hold responsible? (1 mark) C) Which liability insurance will protect against this litigation? (1 mark) (3 marks)

Reveal Solution  Discussion  0

Correct Answer:

See the answer in Explanation below.
Explanation:
A) Charterer's Legal Liability can protect the charterer for legal liability arising from the chartered vessel.
B) The terminal operator can be held responsible if its negligent security caused or contributed to the theft.
C) Terminal Operator's Legal Liability insurance can protect the terminal operator against this type of liability claim.
Reference: CAIB 3 Training & Study Pack - Marine Insurance: charterers' liability and terminal operators' legal liability.

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