Canadian Accredited Insurance Broker (CAIB) Two Practice Exam

Which of the following is NOT one of the four key areas addressed by crime riders?

1. Location of property insured

2. Persons causing the loss

3. Insurance premiums paid

4. Property covered

The correct answer is: Insurance premiums paid

The focus when considering crime riders revolves around coverage specific to theft and other criminal activities, laying out the parameters of what is insured and potential causes of loss. The four key areas commonly addressed by crime riders include the location of the property insured, the individuals or entities responsible for causing the loss, and the types of property that are covered under the crime policy. Insurance premiums paid, while certainly a crucial aspect of any insurance policy, do not pertain directly to the specifics of the crime rider’s function in defining coverage and exclusions related to criminal acts. Instead, they are a financial consideration rather than a key element that delineates the scope of coverage provided by crime riders. This is why the choice regarding insurance premiums paid stands out as the one that is not part of the essential focus of crime riders, as it does not impact what the policy protects against in terms of theft or vandalism.