Canadian Accredited Insurance Broker (CAIB) Two Practice Exam

Under a Glass Rider, what are the two bases on which glass can be insured?

1. Scheduled and customized

2. Blanket and scheduled

3. General and specific

4. Standard and preferred

The correct answer is: Blanket and scheduled

The correct answer is based on the fact that a Glass Rider typically offers two methods of coverage: blanket and scheduled. In a blanket coverage scenario, all glass within a specified location or property is covered under a single limit, making it easier to manage and providing comprehensive protection. This means that if any glass is damaged or broken, it is covered without needing to assess specific pieces or amounts beforehand. Scheduled coverage, on the other hand, allows for specific pieces of glass to be listed individually on the insurance policy, each with its own valuation. This method enables more tailored coverage, where higher-risk or more valuable pieces of glass can be explicitly included in the policy with appropriate limits. These two bases provide flexibility for insurers and insured parties to choose the most suitable form of glass coverage for their needs, thus enhancing the policy's usefulness.