Idaho Property and Casualty Insurance Exam
Questions and Answers Updated Latest (Verified Answers)
1. Which of the following statements is false with respect to requirements forrates?
A) Rates may not be inadequate
B) A purpose of the rate regulation is to diminish competition between insur-ers
C) Rates may not be unfairly discriminatory
D) A purpose of the rate regulation is to regulate cooperative action among
insurers
Answer : B
2. The Businessowners Coverage Form to the Businessowners Policy pro-vides
coverage on which of the following basis?
A) Modified Perils
B) Simplified Perils
C) Broad Perils
D) Open Perils
Answer : D
3. Which of the following describes the coverage of the Extra Expense Cover-age
Form?
A
,It covers the loss of business income during the period of restorationB
It covers the expense of disposing of spoiled merchandise caused by a poweroutage
C
It covers the necessary additional expenses incurred during the period of
restoration which would not otherwise have been incurred in the absence ofa
direct loss
D
It covers the expense of removing the debris of a covered direct loss
Answer : C
4. All of the following are true of negligence, except:A
It is the failure to use ordinary careB
It does not require a duty to be owedC
It is a type of tort
D
It does not include breach of contract
Answer : B
5. All of the following are Optional Coverages under the BusinessownersPolicy,
except:
,A
Money and securitiesB
Employee dishonestyC
Outdoor signsD
Personal property of others that is in the insured's care, custody and control-
Answer : D
6. Policyholder S has an HO-5 policy with a $250,000 Coverage A limit. After a
strong wind blows a mailbox into S's front picture window, causing $2,500 damage,
S immediately buys $250 of wood and plastic sheeting to cover the damaged
window and prevent further damage. How much will S's policy pay?A
$2,250
B
$2,750
C
$250
D
$500
Answer : B
7. The Collision or Running Down Clause in Ocean Marine Insurance covers:
A
, Collision damage to another vessel when the shipper is liableB
Collision damage to the insured vessel when it collides with a pier or fixedobject
C
Damage to the insured vessel caused by running agroundD
Collision damage to the insured vessel when it collides with another vessel
:A
8. Which Ocean Marine insurance provision protects against direct damagecaused
by bursting of boilers?
A
Boiler & Machinery ClauseB
Questions and Answers Updated Latest (Verified Answers)
1. Which of the following statements is false with respect to requirements forrates?
A) Rates may not be inadequate
B) A purpose of the rate regulation is to diminish competition between insur-ers
C) Rates may not be unfairly discriminatory
D) A purpose of the rate regulation is to regulate cooperative action among
insurers
Answer : B
2. The Businessowners Coverage Form to the Businessowners Policy pro-vides
coverage on which of the following basis?
A) Modified Perils
B) Simplified Perils
C) Broad Perils
D) Open Perils
Answer : D
3. Which of the following describes the coverage of the Extra Expense Cover-age
Form?
A
,It covers the loss of business income during the period of restorationB
It covers the expense of disposing of spoiled merchandise caused by a poweroutage
C
It covers the necessary additional expenses incurred during the period of
restoration which would not otherwise have been incurred in the absence ofa
direct loss
D
It covers the expense of removing the debris of a covered direct loss
Answer : C
4. All of the following are true of negligence, except:A
It is the failure to use ordinary careB
It does not require a duty to be owedC
It is a type of tort
D
It does not include breach of contract
Answer : B
5. All of the following are Optional Coverages under the BusinessownersPolicy,
except:
,A
Money and securitiesB
Employee dishonestyC
Outdoor signsD
Personal property of others that is in the insured's care, custody and control-
Answer : D
6. Policyholder S has an HO-5 policy with a $250,000 Coverage A limit. After a
strong wind blows a mailbox into S's front picture window, causing $2,500 damage,
S immediately buys $250 of wood and plastic sheeting to cover the damaged
window and prevent further damage. How much will S's policy pay?A
$2,250
B
$2,750
C
$250
D
$500
Answer : B
7. The Collision or Running Down Clause in Ocean Marine Insurance covers:
A
, Collision damage to another vessel when the shipper is liableB
Collision damage to the insured vessel when it collides with a pier or fixedobject
C
Damage to the insured vessel caused by running agroundD
Collision damage to the insured vessel when it collides with another vessel
:A
8. Which Ocean Marine insurance provision protects against direct damagecaused
by bursting of boilers?
A
Boiler & Machinery ClauseB
