Canadian Accredited Insurance Broker (CAIB) Two Practice Exam

Which benefit does a checklist provide during the survey process?

1. Ensures minimal documentation is needed

2. Alerts broker to possible losses or exposures

3. Increases the overall insurance premium

4. Guarantees coverage for all potential risks

The correct answer is: Alerts broker to possible losses or exposures

Using a checklist during the survey process serves as a systematic tool that significantly enhances the ability to identify potential risks and exposures. By clearly outlining various factors that need to be assessed, the checklist helps the broker or surveyor to methodically evaluate each relevant aspect of the insured property or business operations. This capability is crucial in pinpointing vulnerabilities that may otherwise go unnoticed, thereby alerting the broker to possible losses or exposures. This process ultimately aids in the accurate assessment of the insurance needs of the client, allowing for tailored coverage that adequately addresses identified risks. The checklist does not eliminate the need for documentation but rather organizes how it is approached, does not directly impact premiums, and does not guarantee coverage for every conceivable risk, as coverage depends on the specifics of the policy and the insurance market's terms.