CAIB 1 PRACTICE QUESTIONS WITH CORRECT ANSWERS

CAIB 1 PRACTICE QUESTIONS WITH
CORRECT ANSWERS
Consideration is...
a. The law of insurance
b. A promise between parties
c. A contract's binding force
d. An exchange of something of value - CORRECT ANSWERd. An exchange of something of value
A stock company is...
a. A company that invests in other companies
b. A company owned by stockholders who provide the capital to
start and run the company
c. Is owned by customers of the company
d. A company that owns livestock - CORRECT ANSWER-b. A
company owned by stockholders who provide the capital to
start and run the company
The difference between pure and speculative risk is...
a. Speculative risk is insurable but pure risk is not