IBABC CAIB-3 Q&A - in .pdf

  • CAIB-3 pdf
  • Exam Code: CAIB-3
  • Exam Name: Canadian Accredited Insurance Broker (CAIB 3) Exam
  • Updated: Sep 30, 2026
  • Q & A: 48 Questions and Answers
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  • Q & A: 48 Questions and Answers
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IBABC CAIB-3 Exam Syllabus Topics:

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

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

Question #1

While very similar, there are some key differences between the coverages provided under the profits form and the gross earnings form. Name three (3) of those key differences. (3 marks)

Reveal Solution  Discussion  0

Correct Answer:

See the answer in Explanation below.
Explanation:
1. Gross Earnings coverage normally ends when the damaged property is repaired, rebuilt or replaced. The Profits Form can continue until the business income returns to the level it would have reached, subject to the selected indemnity period.
2. Under Gross Earnings, delays caused by the insured or other people involved can reduce the claim. Under the Profits Form, the focus is on delays for which the insured is responsible.
3. The Profits Form can cover income loss caused by delays in complying with building by-laws, while the Gross Earnings Form does not cover that additional delay in the same way.
Reference: CAIB 3 Training & Study Pack - Business Interruption: Gross Earnings Form compared with the Profits Form.

Question #2

A) How does the Directors' and Officers' Liability insurance protect the organization? Name the specific coverage element. (2 marks) B) Which coverage element might cover costs of defence related to allegations of pollution? (1 mark) (3 marks)

Reveal Solution  Discussion  0

Correct Answer:

See the answer in Explanation below.
Explanation:
A) Company Reimbursement Coverage (Side B) reimburses the organization for amounts it is legally permitted to pay to indemnify its directors and officers for covered claims.
B) Pollution Defence Costs Coverage may cover defence costs arising from allegations of pollution, subject to the policy wording.
Reference: CAIB 3 Training & Study Pack - Directors' and Officers' Liability: Company Reimbursement and Pollution Defence Costs.

Question #3

Does employee dishonesty coverage apply if the insured can not identify the employee responsible? Why or why not? (3 marks)

Reveal Solution  Discussion  0

Correct Answer:

See the answer in Explanation below.
Explanation:
Yes, coverage can still apply even if the exact employee cannot be identified. The insured must be able to prove that the loss was caused by the dishonest act of one or more employees. An unexplained inventory shortage by itself may not be enough proof.
Reference: CAIB 3 Training & Study Pack - Crime Insurance: Employee Dishonesty and proof of loss.

Question #4

Which of the following most accurately describes the period of coverage for a cyber insurance policy? (1 mark)

  • A. Any of the above, depending on which is earliest.
  • B. A fixed time period, which can range from 30 days to 12 months following the date of loss, depending on the insurance policy.
  • C. The date when systems should have been restored.
  • D. The date when systems are restored.
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

Explanation: Only visible for PracticeDump members. You can sign-up / login (it's free).

Question #5

DEFINE: IN MOTION (1 mark)

Reveal Solution  Discussion  0

Correct Answer:

See the answer in Explanation below.
Explanation:
An aircraft is considered in motion when it is in flight or moving under its own power. It is also considered in motion while a propeller or rotor is being rotated by engine power.
Reference: IBAC CAIB 3 Student Resource Guide (2013), Chapter 4 - Aviation Insurance, reference p. 4-23.

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