CAIB 1 · Fundamentals of Insurance · Canada
CAIB 1 / Fundamentals of Insurance
Study Guide + Practice Questions — Complete Bundle
Pass the CAIB 1 exam and earn your Level 1 insurance broker licence in BC, SK, MB, NB, NS, PEI, or NL. The only prep bundle that covers all 8 chapters with a complete study guide, textbook-accurate key term definitions, and 72 practice questions matched to the real exam format — all with full model answers and marking notes.
✓Complete study guide — all 8 CAIB 1 chapters with textbook-sourced definitions
✓72 practice questions — definitions, multiple choice, and short answer in real exam format
✓Every wrong answer explained — not just the correct one
✓Marking notes showing exactly how 3-mark short answer questions are scored
✓Aligned to CAIB New Edition 1.0 curriculum
✓Instant download — two Word documents delivered immediately after purchase
✓Money-back guarantee if you do not pass
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Short answer + marking notes
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Download on purchase
⚠ Your CAIB 1 licence depends on passing this exam
The CAIB 1 exam is required to get your Level 1 insurance broker licence in BC, Saskatchewan, Manitoba, New Brunswick, Nova Scotia, PEI, and Newfoundland. You have 3.5 hours to answer 12 key term definitions, 10 multiple choice, and 26 short answer questions — and you need 60% to pass. Short answer is worth 78 of 100 marks. Most candidates who fail do so because they do not know how marks are awarded on short answer. This bundle fixes that.
What’s inside
A complete study guide and 72 practice questions — together
Most exam prep products give you one or the other. This bundle gives you both — a study guide that builds your understanding of every topic, and practice questions that train you on the exact format and difficulty of the real CAIB 1 exam.
📖 The Study Guide
Structured study notes covering every topic tested across all 8 CAIB 1 chapters. Definitions are sourced directly from textbook materials — not paraphrases — so when the exam tests a key term, your answer matches what the marker expects. Each chapter includes:
→Clear explanations of every key concept and definition with textbook page references
→Exam Trap callout boxes identifying the specific mistakes that catch candidates
→Comparison tables for concepts that are easily confused (e.g., All Risks vs. Named Perils, Pro Rata vs. Short Rate)
→IBC form numbers, coverage letter designations, and the 13 named perils — exactly as tested
✏️ The Practice Questions
72 questions covering all three exam sections in real exam format. Every question includes a model answer and marking notes showing how marks are allocated:
→12 key term definition questions with keyword callouts showing what markers look for
→20 multiple choice questions — every wrong answer explained so you understand why, not just which
→40 short answer questions including COVERED/NOT COVERED scenarios, multi-part questions, and broker application scenarios
→Marking notes for every 3-mark short answer showing exactly how marks are split
Coverage
All 8 chapters — study notes and practice questions for each
Chapter 1 — Introduction to General Insurance
12 practice Qs
Insurance fundamentals, the four elements of a valid contract, insurable interest, indemnity, utmost good faith, subrogation, pure vs. speculative risk, types of insurers (proprietary vs. non-proprietary), PACICC, the 13 named perils, pro rata vs. short rate cancellation, proof of loss, and fraud. The most definition-heavy chapter — expect multiple key terms from here on your exam.
Chapter 2 — Habitational Insurance
14 practice Qs
The three IBC Homeowners Forms (IBC 1151, 1153, 1155) and what each covers, the 13 named perils in detail, Coverage A through D and Coverage E through H, extensions of coverage, special limits for personal property, off-premises coverage, and key exclusions. The highest-tested chapter on CAIB 1. Expect COVERED/NOT COVERED scenarios on every exam.
Chapter 3 — Other Habitational Insurance Coverages
5 practice Qs
Seasonal residence form (IBC 1173) and its four excluded perils, mobile home coverage, tenants comprehensive form (IBC 1163), condominium unit owners form (IBC 1165), and key endorsements including sewer backup, by-laws extension, and glass breakage.
Chapter 4 — Personal Liability Insurance
6 practice Qs
Criminal vs. civil law, negligence, tort, trespasser/licensee/invitee classification, special and general damages, occupier’s liability, Coverage E through H in detail, and the difference between voluntary medical payments and personal liability.
Chapter 5 — Farm Insurance
3 practice Qs
Farm package policy structure, the definition of farming and custom farming, residence vs. farm employees, farm buildings and machinery, farm liability vs. personal liability, and why a homeowners policy is insufficient for a working farm.
Chapter 6 — The Basics of Personal Automobile Insurance
14 practice Qs
Government vs. private auto insurance by province, the SPF No. 1 structure (Section A, B, C), third party liability, accident benefits (three subsections), collision vs. comprehensive, uninsured and unidentified automobile coverage, Facility Association, pink card, driver’s abstract, business use disclosures, and the BC ICBC Autoplan supplement including Enhanced Care. Second most tested chapter — know the Collision vs. Comprehensive distinction and the SPF No. 1 sections cold.
Chapter 7 — Building Towards Professionalism
10 practice Qs
Broker vs. agent distinction, the fiduciary duty, regulation of the insurance industry, E&O coverage and broker obligations, material misrepresentation and concealment, the application and binding process, post-loss obligations of the insured, and privacy obligations under PIPEDA.
Chapter 8 — Travel Insurance
8 practice Qs
Emergency medical insurance, trip cancellation vs. trip interruption, baggage insurance, flight accident insurance, multi-trip annual policies, the stability clause and pre-existing condition exclusions, and key exclusions including travel advisories and high-risk activities.
Sample question
See exactly what the practice questions look like
Scenario: The insured’s car is parked in their driveway overnight. In the morning they discover a large dent in the driver’s door and broken headlight. A neighbour confirms they saw a deer running through the yard at around 2 a.m. No damage to any other vehicles is involved.
Under Section C of the SPF No. 1, which coverage responds to repair the insured’s vehicle?
(A) Collision or Upset — the vehicle was struck by an object (the deer) causing damage
(B) Comprehensive — this is damage from a peril other than collision with another vehicle or fixed object ◄ CORRECT
(C) Section A — Third Party Liability covers the insured’s damage to others, not their own vehicle
(D) Section B — Accident Benefits covers bodily injury, not vehicle damage
Why each answer is right or wrong:
(B) is correct. A deer strike is not a “collision” in the insurance sense. Collision or Upset covers damage from the insured vehicle striking another vehicle or a fixed object, or the vehicle overturning. A deer running into a stationary vehicle is covered under Comprehensive, which covers damage from perils other than collision — including animals.(A) is the most common wrong answer. Candidates assume the physical impact makes it a collision claim. On the CAIB exam, always ask: did the vehicle collide with another vehicle or a fixed object? If no — it is Comprehensive.(C) and (D) are wrong because they are liability and injury coverages respectively — neither applies to physical damage to the insured’s own vehicle.
The full bundle contains 72 questions at this level — every one with complete answer rationale.
FAQ
Frequently asked questions
Is this aligned to CAIB New Edition 1.0?
Yes. The study guide follows the official CAIB New Edition 1.0 chapter structure and includes the ICBC Autoplan Supplement added in the New Edition. The previous CAIB edition is still available for self-study until December 2026 — these materials are also compatible with the previous edition as the core content of Chapters 1–6 and 8 is consistent across both editions.
What exactly is in the download?
Two Word documents (.docx format): (1) the complete CAIB 1 Study Guide covering all 8 chapters with definitions, key concepts, exam tips, and a Master Key Terms Glossary; and (2) the Practice Questions document with 12 definition questions, 20 multiple choice, and 40 short answer questions — all with full model answers and marking notes.
Is this a replacement for the CAIB textbook?
It is a focused preparation supplement. The study guide distils the key concepts from all 8 chapters into what the exam actually tests. Many candidates use this bundle as their primary preparation alongside the textbook. Others use it as a standalone resource. Either way, the practice questions are designed to match the real exam’s difficulty and format.
How is the rationale different from other prep materials?
Most materials tell you which answer is correct. This bundle explains why every wrong answer is wrong — far more valuable when the CAIB exam presents plausible-sounding distractors. The short answer marking notes go further, showing exactly which keywords earn each mark. This is what most study materials miss entirely.
Does this cover the Fundamentals of Insurance (FOI) exam as well as CAIB 1?
Yes. The Fundamentals of Insurance exam and the CAIB 1 exam cover the same core content — habitational, liability, auto, farm, and travel insurance. The FOI exam is multiple choice only (no short answer), so candidates writing FOI will find the multiple choice section especially useful. All study guide content is relevant to both exams.
How long does it take to work through the bundle?
Most candidates complete the full bundle in 6 to 10 hours. Read each chapter’s study notes then immediately work through that chapter’s practice questions. Chapters 2 (Habitational) and 6 (Automobile) are the most content-heavy — plan at least 2 hours each. Chapter 1 has the most key term definitions — plan time for memorization.
Which provinces use CAIB 1 for Level 1 licensing?
CAIB 1 (or the equivalent Fundamentals of Insurance exam) is used for Level 1 general insurance broker licensing in British Columbia, Saskatchewan, Manitoba, New Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland and Labrador. Ontario uses the RIBO Level 1 exam. Alberta uses the AIC Level 1 exam. Both are available as separate products on MySafetyPrep.
