Idaho Property & Casualty Exam Prep final questions and answers

Idaho Property & Casualty Exam Prep final questions and answers Which of the following statements is false with respect to requirements for rates? A) Rates may not be inadequate B) A purpose of the rate regulation is to diminish competition between insurers C) Rates may not be unfairly discriminatory D) A purpose of the rate regulation is to regulate cooperative action among insurers - B The Businessowners Coverage Form to the Businessowners Policy provides coverage on which of the following basis? A) Modified Perils B) Simplified Perils C) Broad Perils D) Open Perils - D Which of the following describes the coverage of the Extra Expense Coverage Form? A It covers the loss of business income during the period of restoration B It covers the expense of disposing of spoiled merchandise caused by a power outage C It covers the necessary additional expenses incurred during the period of restoration which would not otherwise have been incurred in the absence of a direct loss D It covers the expense of removing the debris of a covered direct loss - C All of the following are true of negligence, except: A It is the failure to use ordinary care B It does not require a duty to be owed C It is a type of tort D It does not include breach of contract - B All of the following are Optional Coverages under the Businessowners Policy, except: A Money and securities B Employee dishonesty C Outdoor signs D Personal property of others that is in the insured's care, custody and control - D 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 - B The Collision or Running Down Clause in Ocean Marine Insurance covers: A Collision damage to another vessel when the shipper is liable B Collision damage to the insured vessel when it collides with a pier or fixed object C Damage to the insured vessel caused by running aground D Collision damage to the insured vessel when it collides with another vessel - A Which Ocean Marine insurance provision protects against direct damage caused by bursting of boilers? A Boiler & Machinery Clause B Inchmaree Clause C Mechanical Failure Clause D Running Down Clause - B Bodily Injury may include which of the following? A Loss of Earnings B Slander C Invasion of Privacy D False Arrest - A Which of the following covers an employee in a position of private trust and protects an employer against loss caused by the employee's dishonesty. A Performance bond B Fidelity bond C Lender's bond D License bond - B Which of the following is correct regarding products liability under the CGL? A Coverage applies to the bodily injury (BI) and property damage (PD) the product causes, but not to the product itself B Products liability coverage commences immediately upon sale of the product, before the purchaser leaves the insured's premises C Products liability coverage includes dram shop liability insurance D Coverage applies to BI and PD caused by the product, and to damage to the product itself once in the purchaser's care, custody and control - A Notice of premium or coverage changes must be sent out with ___ days' notice. A 21 B 25 C 14 D 30 - D All of the following are covered perils under the Extended Coverage Endorsement to the DP-1, except: A Vehicles B Weight of ice, snow or sleet C Windstorm