IBABC CAIB-3 real dump : Canadian Accredited Insurance Broker (CAIB 3) Exam

  • Exam Code: CAIB-3
  • Exam Name: Canadian Accredited Insurance Broker (CAIB 3) Exam
  • Updated: Sep 19, 2026
  • Q&As: 48 Questions and Answers

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IBABC CAIB-3 Exam Syllabus Topics:

SectionObjectives
Topic 1: Commercial General Liability Insurance- Legal perspective and liability exposures
- CGL policy structure, coverages, and endorsements
Topic 2: Commercial Automobile Insurance- Garage and fleet exposures
- Commercial auto policy forms and coverages
Topic 3: Specialty Insurance Lines- Surety Bonds
- Ocean Marine and Aviation Insurance
- Crime Insurance and Fidelity Coverage
Topic 4: Risk Management and Underwriting- Commercial underwriting principles
- Loss control and risk mitigation strategies
- Risk identification and assessment

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

Question #1

A) What is a third-party cyber event? Provide an example. (2 marks)
B) What is an example of a third-party cyber loss? (1 mark)
(3 marks)

Reveal Solution  Discussion  0

Correct Answer:

See the answer in Explanation below.
Explanation:
A) A third-party cyber event is a cyber incident involving the insured that causes harm or loss to another person or organization. Example: a hacker steals customers' personal information from the insured's computer system.
B) An example of a third-party cyber loss is legal defence costs or damages from a customer lawsuit after a privacy breach.
Reference: CAIB 3 Training & Study Pack - Cyber Insurance: third-party events and cyber liability losses.

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

Under the inside/outside robbery coverage, which of the following would qualify as a custodian? (1 mark)

  • A. Janitor.
  • B. Guard.
  • C. Insured's partner.
  • D. Watchman.
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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Question #4

DEFINE: EXTENDED REPORTING PERIOD (1 mark)

Reveal Solution  Discussion  0

Correct Answer:

See the answer in Explanation below.
Explanation:
An Extended Reporting Period is extra time after a claims-made policy ends during which a claim can still be reported for an occurrence or wrongful act that happened during the covered period, subject to the policy terms and any retroactive date.
Reference: IBAC CAIB 3 Student Resource Guide (2013), Chapter 2 - Claims-Made coverage and Extended Reporting Period, reference p. 2-40.

Question #5

Fred's Fried Things is a busy fast food business and has protocol in place to make sure they don't have too much cash on site, depositing it at the bank twice per day. Today, while taking the first deposit to the bank, the manager is robbed at gunpoint. Is there coverage available for this loss? Why or why not? (3 marks)

Reveal Solution  Discussion  0

Correct Answer:

See the answer in Explanation below.
Explanation:
Yes. This would be covered under Outside the Premises/Outside Robbery coverage. The manager is a custodian carrying the business money to the bank, and the money was taken by robbery at gunpoint. The loss would be covered subject to the policy limit and deductible.
Reference: CAIB 3 Training & Study Pack - Crime Insurance: Outside the Premises/Outside Robbery coverage and custodian.

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