Canadian Accredited Insurance Broker (CAIB) Two Practice Exam

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Study for the Canadian Accredited Insurance Broker Two Exam. Learn with flashcards and multiple-choice questions, with hints and explanations. Prepare effectively for your exam!

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How can crime exposures not insured by the 3D Policy be addressed?

By purchasing a separate policy
They cannot be addressed
By endorsement additionally to the policy
By adjusting coverage limits annually

The correct answer is: By endorsement additionally to the policy

The correct approach to addressing crime exposures that are not covered by the 3D Policy is through endorsements added to the existing policy. Endorsements serve as modifications or additions to insurance contracts that expand or specify coverage. By utilizing endorsements, policyholders can customize their coverage to include additional crime-related risks or exposures that the standard policy does not handle. This flexibility allows for a more tailored insurance solution that meets the unique needs of the insured party. Selecting endorsements is preferable because it allows for a more streamlined management of risks within the existing policy framework, rather than needing to purchase a completely separate policy. This can lead to cost savings and a simplified claims process, as the coverage remains within the same insurance contract. Adjusting coverage limits annually is a separate exercise focused on changing the amounts of coverage rather than addressing specific uninsurable exposures.