Canadian Accredited Insurance Broker (CAIB) Three Practice Exam

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Prepare for the Canadian Accredited Insurance Broker Three Exam. Study with flashcards and multiple-choice questions, each with hints and explanations. Gear up for your certification!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

When insuring values of owned vehicles on a Monthly Average Basis, what is required of the insured?

To provide monthly reports of values
To pay premiums yearly
To limit the number of vehicles insured
To list all vehicles permanently owned

The correct answer is: To provide monthly reports of values

When insuring values of owned vehicles on a Monthly Average Basis, the insured is required to provide monthly reports of values. This approach is designed to accurately reflect the fluctuating values of the vehicles throughout the coverage period. Since the insured's vehicle values can vary from month to month due to depreciation, changes in market conditions, or changes in the fleet, regular reporting ensures that the insurer has up-to-date information to calculate appropriate premiums and provide adequate coverage. By maintaining these monthly reports, the insured helps manage risk effectively and ensures that the coverage aligns with the current value of their fleet. The other options, while related to vehicle insurance, do not directly address the requirements tied to a Monthly Average Basis policy. For instance, paying premiums yearly may not be required if the policy allows for more flexible premium payments, and limiting the number of vehicles insured is not a standard requirement for this type of coverage. Listing all vehicles permanently owned could be relevant for overall fleet management but does not pertain specifically to the monthly reporting required for fluctuating values.