Canadian Accredited Insurance Broker (CAIB) One Practice Exam

Which of the following does not apply concerning statutory conditions?

1. Insured must always protect property from loss

2. Insurer must notify repairs within 30 days

3. An agent can provide notice of loss for the insured

4. Insurer has the right to investigate post-loss

The correct answer is: Insured must always protect property from loss

The correct answer points to the fact that the requirement for the insured to protect the property from loss is not a statutory condition in the strict sense. Statutory conditions typically pertain to the responsibilities and obligations of both the insurer and the insured during the insurance contract, particularly in the event of a loss. It is essential for the insured to take necessary steps to minimize further damage after a loss has occurred; however, it does not strictly mandate that they always protect the property from any potential loss beforehand. In contrast, the other options represent actual statutory conditions. The insurer's obligation to notify about repairs within a specified time frame is crucial for maintaining transparency and trust in the insurance process. Allowing an agent to provide notice of loss on behalf of the insured facilitates communication and ensures that the insurer is promptly informed of any incidents. Lastly, the insurer's right to investigate post-loss is vital for assessing the validity of claims and ensuring that the claims process is fair and accurate.