Canadian Accredited Insurance Broker (CAIB) Two Practice Exam

What type of coverage does a separate policy provide?

1. General policy adjustments

2. Coverage for specialty items

3. Additional costs for existing policies

4. Temporary coverage during repairs

The correct answer is: Coverage for specialty items

A separate policy is designed to provide specific coverage tailored for unique or specialty items that may not be adequately covered under a standard insurance policy. These specialty items could include valuable collections, high-end electronics, or specific types of equipment that require customized protection. Such a policy can address unique risks associated with these items, ensuring they are fully financially protected against perils such as theft, loss, or damage. The nature of a separate policy allows the insured to secure higher limits or specific types of coverage not typically available in more generalized insurance solutions. By focusing exclusively on these valuable or unique items, the insured can rest assured that they have the right kind of protection for their individual needs. The other choices refer to general or temporary forms of coverage that are not aligned with the specific purpose of a separate policy, which focuses on distinct items requiring specialized insurance solutions.