Idaho Property & Casualty Exam Prep questions
and answers with solutions 2025
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 - ANSWER
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 - ANSWER 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 - ANSWER 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 - ANSWER 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 - ANSWER 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 - ANSWER 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 - ANSWER 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 - ANSWER B
Bodily Injury may include which of the following?
A
Loss of Earnings
B
Slander
C
Invasion of Privacy
D
False Arrest - ANSWER 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
and answers with solutions 2025
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 - ANSWER
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 - ANSWER 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 - ANSWER 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 - ANSWER 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 - ANSWER 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 - ANSWER 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 - ANSWER 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 - ANSWER B
Bodily Injury may include which of the following?
A
Loss of Earnings
B
Slander
C
Invasion of Privacy
D
False Arrest - ANSWER 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
