Idaho Property and Casualty Insurance Exam
Questions and Answers Updated Latest (Verified Answers)
1. The term flood refers to all of the following EXCEPT
A. an overflow of inland tidal waters
B. collapse of land as a result of excessive erosion due to flood
C. mudslides
D. sewer backup
Answer : Sewer backup
2. Insurers may be classified according to their financial strength. This in-cludes
all of the following factors EXCEPT...
A. Number of clients
B. Loss experience
C. Investment performance
D. Operating expenses
Answer : Number of clients
3. An individual applied for auto insurance and obtained coverage from ABCIC. Who
is the 1st party in the contract?
,A. The insured (customer)
B. The insurer (IC)
C. The agent
D. The insured and agent
Answer : A. The insured (customer)
4. If a fire causes damage to a building, the fire is...
A. A Hazard
B. A Peril
C. A Risk
D. An Exposure
Answer : B. A Peril
5. Wearing a seatbelt in a car is an ex of which method of managing risk?
A. Retain
B. Avoid
C. Reduce
D. Transfer
Answer : C. Reduce
6. Tiffany leaves her car unlocked when she goes shopping. She figures her car and
its contents are insured, so there is no reason to worry. Which type ofhazard is this
,an example of?
A. Physical
B. Morale
C. Careless
D. Moral
Answer : Morale
7. A flood is an example of....
A. A peril
, B. A moral hazard
C. A speculative risk
D. a physical hazard
Answer : A peril
8. An insurance company incorporated in Wisconsin and conducting business in
Wisconsin is known as a domestic company.What kind of company are theyconsidered
if they do business in Minnesota?
A. Alien
B. Domestic
C. Foreign
D. Nonadmitted
Answer : Foreign
9. All of the following statements about a stock insurance company are true
EXCEPT
A. A stock co pays dividends to stockholders
B. A stock co is a participating co
C. A Stock co is a nonparticipating co
D. a stock co has shareholders
Answer : A stock company is a participating company
Questions and Answers Updated Latest (Verified Answers)
1. The term flood refers to all of the following EXCEPT
A. an overflow of inland tidal waters
B. collapse of land as a result of excessive erosion due to flood
C. mudslides
D. sewer backup
Answer : Sewer backup
2. Insurers may be classified according to their financial strength. This in-cludes
all of the following factors EXCEPT...
A. Number of clients
B. Loss experience
C. Investment performance
D. Operating expenses
Answer : Number of clients
3. An individual applied for auto insurance and obtained coverage from ABCIC. Who
is the 1st party in the contract?
,A. The insured (customer)
B. The insurer (IC)
C. The agent
D. The insured and agent
Answer : A. The insured (customer)
4. If a fire causes damage to a building, the fire is...
A. A Hazard
B. A Peril
C. A Risk
D. An Exposure
Answer : B. A Peril
5. Wearing a seatbelt in a car is an ex of which method of managing risk?
A. Retain
B. Avoid
C. Reduce
D. Transfer
Answer : C. Reduce
6. Tiffany leaves her car unlocked when she goes shopping. She figures her car and
its contents are insured, so there is no reason to worry. Which type ofhazard is this
,an example of?
A. Physical
B. Morale
C. Careless
D. Moral
Answer : Morale
7. A flood is an example of....
A. A peril
, B. A moral hazard
C. A speculative risk
D. a physical hazard
Answer : A peril
8. An insurance company incorporated in Wisconsin and conducting business in
Wisconsin is known as a domestic company.What kind of company are theyconsidered
if they do business in Minnesota?
A. Alien
B. Domestic
C. Foreign
D. Nonadmitted
Answer : Foreign
9. All of the following statements about a stock insurance company are true
EXCEPT
A. A stock co pays dividends to stockholders
B. A stock co is a participating co
C. A Stock co is a nonparticipating co
D. a stock co has shareholders
Answer : A stock company is a participating company
