IDAHO PROPERTY AND CASUALTY INSURANCE
Exam Review Questions With 100% Correct Answers
(Verified) Latest Grade A+
1. An insured has a homeowners policy and is required to be a member of the
homeowners association in her neighborhood. The association's community
house has burned down, and the insured has been assessed $1200 for her share
of the rebuilding cost. How much of the assessment will her homeown- ers
policy pay?
a) Non
e
b)$500
,c) $1,000
d) $1,200
ANS $1,000
2. What is the maximum number of roomers or boarders for properties insured
under the dwelling policy?
a)2
b)3
c)5
d)6
ANS 5
3. A type of policy that is used to provide a specific amount of replacement
cost for a given risk after an insured property has been destroyed is called
a(n)
a) Specific risk policy.
b) Valued policy.
c) Pro-forma appraisal policy.
d) Equitable sum policy.
ANS Specific Risk Policy
,4. Which of the following types of valuation works best for property whose
value does not fluctuate much?
a) Stated amount
b)Inflation guard
c) Agreed value
d) Market value
ANS Agreed Value
5. The part of a property policy that shows the amount of insurance, premium,
and policy term is the
a) Insuring clause.
b)Conditions.
c)Endorsements.
d)Declarations.
ANS Declarations
6. A commercial property special form covers property in transit up to
a)$500.
b)Full replacement cost.
c)$5,000.
c) ACV.
, ANS $5,000
7. The policy conditions define
a) The amount of coverage.
b) How parties to the contract must act following a loss.
c) The basic underwriting information.
d) The excluded perils.
ANS The amount of coverage
8. The HO-3 homeowners policy provides
Exam Review Questions With 100% Correct Answers
(Verified) Latest Grade A+
1. An insured has a homeowners policy and is required to be a member of the
homeowners association in her neighborhood. The association's community
house has burned down, and the insured has been assessed $1200 for her share
of the rebuilding cost. How much of the assessment will her homeown- ers
policy pay?
a) Non
e
b)$500
,c) $1,000
d) $1,200
ANS $1,000
2. What is the maximum number of roomers or boarders for properties insured
under the dwelling policy?
a)2
b)3
c)5
d)6
ANS 5
3. A type of policy that is used to provide a specific amount of replacement
cost for a given risk after an insured property has been destroyed is called
a(n)
a) Specific risk policy.
b) Valued policy.
c) Pro-forma appraisal policy.
d) Equitable sum policy.
ANS Specific Risk Policy
,4. Which of the following types of valuation works best for property whose
value does not fluctuate much?
a) Stated amount
b)Inflation guard
c) Agreed value
d) Market value
ANS Agreed Value
5. The part of a property policy that shows the amount of insurance, premium,
and policy term is the
a) Insuring clause.
b)Conditions.
c)Endorsements.
d)Declarations.
ANS Declarations
6. A commercial property special form covers property in transit up to
a)$500.
b)Full replacement cost.
c)$5,000.
c) ACV.
, ANS $5,000
7. The policy conditions define
a) The amount of coverage.
b) How parties to the contract must act following a loss.
c) The basic underwriting information.
d) The excluded perils.
ANS The amount of coverage
8. The HO-3 homeowners policy provides
