Canadian Accredited Insurance Broker (CAIB) Two Practice Exam

What are the two categories of control for alarm systems?

1. Single monitored and dual monitored

2. Local and remote supervision

3. Local and monitored

4. Central and decentralized

The correct answer is: Local and monitored

The correct answer is that there are two categories of control for alarm systems: local and monitored. Local control refers to systems that operate independently within a specific area, such as a residence or a single business location. These systems can produce alarms on-site, alerting occupants directly without the need for external monitoring. Monitored systems, on the other hand, are connected to a central monitoring station that continuously evaluates the security status of the alarm. When an alarm is triggered, the monitoring station is alerted and can respond by notifying emergency services or the property owner. Understanding the distinction between local and monitored controls is crucial for selecting the appropriate alarm system based on security needs. For example, businesses with valuable assets might benefit from a monitored system to ensure quick response times in the event of a security breach, while homeowners may choose local systems for convenience and cost-effectiveness. In contrast, the other options involve terms that either do not accurately describe the recognized categories of alarm control or do not clarify the monitoring aspect of alarm systems effectively. Hence, focusing on local and monitored control provides a clear understanding of how alarm systems can be utilized in different scenarios.