Canadian Accredited Insurance Broker (CAIB) Three Practice Exam

What options are available for insuring fleet vehicles?

1. Scheduled or individual basis

2. Scheduled or blanket basis

3. Individual or commercial basis

4. Fleet or business basis

The correct answer is: Scheduled or blanket basis

Insuring fleet vehicles typically involves considering coverage options that can efficiently manage risk across multiple vehicles. The correct choice, which identifies available options for insuring fleet vehicles, consists of "scheduled or blanket basis." When insurance is arranged on a scheduled basis, each vehicle in the fleet is listed individually in the policy. This allows for specific coverage limits and tailored terms for each vehicle, which is beneficial when the vehicles vary significantly in terms of value, use, or risk exposure. On the other hand, blanket coverage provides a single limit that applies to the entire fleet, regardless of how many vehicles are involved. This approach simplifies the administration of the insurance policy and can often lead to cost savings and less complexity, especially for businesses that frequently add or remove vehicles from their fleet. Both approaches are designed to cater to the diverse needs of businesses managing several vehicles, ensuring comprehensive protection while maintaining flexibility for fleet operations. The terminology and structure of these options are crucial for brokers to understand to best advise their clients on the most suitable coverage to meet their needs.