Idaho Property & Casualty Exam Prep New Update 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: