IBABC Canadian Accredited Insurance Broker (CAIB 3) : CAIB-3

  • Exam Code: CAIB-3
  • Exam Name: Canadian Accredited Insurance Broker (CAIB 3) Exam
  • Updated: Oct 03, 2026
  • Q&As: 48 Questions and Answers

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CAIB-3 exam dumps

IBABC CAIB-3 Exam Syllabus Topics:

SectionObjectives
Topic 1: Business Interruption Insurance
Topic 2: Surety Bonding
Topic 3: Crime Insurance
Topic 4: Directors' and Officers' Liability Insurance
Topic 5: Risk Assessment for Advanced Commercial Risks
Topic 6: Reinsurance
Topic 7: Cyber Insurance
Topic 8: Marine Insurance
Topic 9: Aviation Insurance

IBABC Canadian Accredited Insurance Broker (CAIB 3) Sample Questions:

Question #1

What are incoterms? Choose the best option below. (1 mark)

  • A. A standard set of terms defining harbors and destinations.
  • B. A standard set of terms used to define key aspects of freight forwarding.
  • C. A standard set of terms used to define ownership of property.
  • D. A standard set of terms defining responsibility during loading and offloading.
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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Question #2

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)

Reveal Solution  Discussion  0

Correct Answer:

See the answer in Explanation below.
Explanation:
A) The three criteria are Character, Capacity and Capital.
B) One factor under each is:
- Character: honesty, reputation and past record.
- Capacity: experience and ability to complete the work.
- Capital: financial strength and available working capital.
Reference: IBAC CAIB 3 Student Resource Guide (2013), Chapter 5 - Qualifying for a Surety Bond:
Character, Capacity and Capital.

Question #3

Your client has gross earnings coverage. Although many of his employees are unskilled, and therefore readily replaceable, your client wants to protect them in the event of an interruption. Which of the following options is available to your client? (1 mark)

  • A. Ordinary payroll can be covered for 90 days.
  • B. Both A) or C).
  • C. Ordinary payroll can be covered for 120 days.
  • D. Ordinary payroll can be covered for 180 days.
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

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Question #4

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

Reveal Solution  Discussion  0

Correct Answer:

See the answer in Explanation below.
Explanation:
Three common reasons for a net income loss exposure are:
1. Business interruption.
2. Contingent business interruption.
3. Loss of profit on finished goods.
Reference: IBAC CAIB 3 Student Resource Guide (2013), Chapter 6 - Risk Management, Net Income Loss Exposure, reference p. 6-3.

Question #5

What can be done to avoid coverage gaps when dealing with silent cyber exposures? (3 marks)

Reveal Solution  Discussion  0

Correct Answer:

See the answer in Explanation below.
Explanation:
1. Review existing policies to see where cyber coverage is unclear or silent.
2. Use clear wording or endorsements to show whether cyber losses are covered or excluded.
3. Purchase and coordinate a separate cyber policy for exposures that are not clearly covered elsewhere.
Reference: CAIB 3 Training & Study Pack - Cyber Insurance: silent cyber and coordination of coverage.

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