Canadian Accredited Insurance Broker (CAIB) Two Practice Exam

What must be true for a loss to be covered regarding the contents of a 'safe' on the insured premises?

1. The safe must be of a certain size

2. All doors of the safe are closed and locked

3. Witnesses must be present

4. Documentation of contents must be available

The correct answer is: All doors of the safe are closed and locked

For a loss to be covered regarding the contents of a 'safe' on the insured premises, it is essential that all doors of the safe are closed and locked. This requirement is typically included in insurance policies to ensure that the safety measures in place are adhered to, thereby reducing the risk of theft or loss. The rationale behind this is that a locked safe represents a significant barrier to unauthorized access. If the doors are not securely closed and locked, it suggests that the contents are not adequately protected, potentially leading to denial of a claim due to negligence on the part of the insured. The other options, while they may address certain aspects of insurance or risk management, do not universally apply to the conditions necessary for coverage of the loss of contents in a safe. A specified size for a safe has no direct relevance to the security protocol that ensures clients' contents are protected. The presence of witnesses is generally irrelevant in the context of loss associated with a safe's contents unless specifically stated by a policy, and documentation of contents, while useful for proving ownership and value, is not typically a strict requirement for coverage related to the security of the safe itself.