Nov 01, 2026 Detailed New CAIB-3 Exam Questions for Concept Clearance [Q25-Q42]

NEW QUESTION 25
An important step in the risk management process is selecting the proper risk management techniques. This procedure relies on the ability of the risk manager to forecast.
A) Identify two (2) forecasts which must be conducted if the organization is to establish meaningful priorities in treating loss exposures. (2 marks) B) Once forecasting has been done, each alternative risk management technique is assessed in accordance with two (2) selection criteria. Identify those criteria. (1 mark) (3 marks)

NEW QUESTION 26
DEFINE: ROBBERY (1 mark)

NEW QUESTION 27
DEFINE: CYBER RISK (1 mark)

NEW QUESTION 28
What three (3) losses are the typical reasons for a net income loss exposure? (3 marks)

NEW QUESTION 29
Which of the following most accurately describes the period of coverage for a cyber insurance policy? (1 mark)

NEW QUESTION 30
DEFINE: IN MOTION (1 mark)

NEW QUESTION 31
DEFINE: FRAUD (1 mark)

NEW QUESTION 32
DEFINE: PARTICULAR AVERAGE (1 mark)

NEW QUESTION 33
All of the shareholders of ABD company have come together in a class action lawsuit against the CEO because they have evidence that he artificially inflated the share price by misrepresenting the company’s finances in their reporting.
A) Of the two (2) types of lawsuits made against directors and officers, which one is this? (1 mark) B) Do you think the shareholders will win this lawsuit? Why or why not? (2 marks) (3 marks)

NEW QUESTION 34
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)

NEW QUESTION 35
DEFINE: CEDENT (1 mark)

NEW QUESTION 36
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)

NEW QUESTION 37
Under the inside/outside robbery coverage, which of the following would qualify as a custodian? (1 mark)

NEW QUESTION 38
Name and explain where judicial bonds are filed. (3 marks)

NEW QUESTION 39
Not everyone can qualify for a surety bond.
A) Identify the three (3) criteria which form the basis of the credit approval of every applicant for bonding. (1
1/2 marks)
B) Identify one (1) factor under each of the criteria stated above which the surety company would consider. (1
1/2 marks)
(3 marks)

NEW QUESTION 40
Your travel agent, Wanda Off, is concerned about the loss of business that might result if her building were to be destroyed by a fire or major storm.
A) Upon your recommendation, Wanda agreed to purchase the Extra Expense Endorsement Form. State the purpose of this coverage form and provide an example of an expense insured. (2 marks) B) Wanda purchased $20,000 coverage under a 40/70/90/100% form. She had a fire loss this past winter but was able to resume operations at alternative premises until her building was repaired 80 days later. What would the insurer’s maximum liability have been in this situation? (1 mark) (3 marks)

NEW QUESTION 41
What is the name of the bond that protects governments in the event that duties and taxes collected by the principal are not remitted to the government? (1 mark)

NEW QUESTION 42
DEFINE: EXTENDED REPORTING PERIOD (1 mark)