Canadian Accredited Insurance Broker (CAIB) Two Practice Exam

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Prepare for the Canadian Accredited Insurance Broker Exam. Enhance your understanding with multiple choice questions and detailed explanations. Achieve success in your CAIB exam journey!

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What reason would NOT constitute a Temporary Location for stock or equipment?

The location is owned by the insured
The equipment was removed to protect it from loss
The property is in a specified location on the policy
The location is rented by the insured

The correct answer is: The property is in a specified location on the policy

A temporary location for stock or equipment typically refers to a place where these assets are stored for a brief period under certain conditions, often not part of the insured’s main premises. Having the property in a specified location on the policy indicates that the insurer recognizes that area as a permanent location for coverage purposes. This means standard policy conditions and coverage apply, without the allowances or flexibility associated with temporary locations. In contrast, if a location is owned by the insured or rented by them, it can qualify as a temporary location depending on the context, such as during repairs or while moving. Similarly, moving equipment to protect it from loss supports the qualification of being a temporary location because it acknowledges the risk involved and the need for short-term storage elsewhere.