Idaho Property and Casualty Personal Lines Insurance Exam
Questions and Answers Updated Latest (Verified Answers)
1. Which of the following statements is false with respect to requirements forrates?
A) Rates may not be inadequate
B) A purpose of the rate regulation is to diminish competition between insur-ers
C) Rates may not be unfairly discriminatory
D) A purpose of the rate regulation is to regulate cooperative action among
insurers
Answer : B
2. All of the following are true of negligence, except
A
It is the failure to use ordinary careB
It does not require a duty to be owedC
It is a type of tort
D
It does not include breach of contract
Answer : B
3. 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
4. Bodily Injury may include which of the following?A
Loss of EarningsB
Slander
C
Invasion of PrivacyD
False Arrest
Answer : A
,5. Notice of premium or coverage changes must be sent out with days'
notice.
A
21
B
25
C
14
D
30
Answer : D
6. All of the following are covered perils under the Extended Coverage En-
dorsement to the DP-1, except
A
Vehicles
B
Weight of ice, snow or sleetC
Windstorm
D
Volcanic eruption
Answer : B
7. Which statement is true concerning Coverage D of the Homeowners Policy?A
, The coverage will pay for all the insured's living expenses until the propertyis
restored
B
If the insured must relocate permanently, payment will be made for 365 days,
regardless of the time it takes the insured to settle at the new location
C
The coverage will pay for any increase in living expenses required to maintainthe
insured's normal standard of living
D
The coverage will pay until the property is restored, plus 30 days relocation
expense
Answer : C
8. Policyholder M insures her owner-occupied single family residence under a
dwelling property policy (DP-3) with a limit of $100,000. If the dwelling is
damaged in a fire, what policy coverage will pay for M's extra costs to stay ina
motel and board her pets while the fire damage is being repaired?
A
Questions and Answers Updated Latest (Verified Answers)
1. Which of the following statements is false with respect to requirements forrates?
A) Rates may not be inadequate
B) A purpose of the rate regulation is to diminish competition between insur-ers
C) Rates may not be unfairly discriminatory
D) A purpose of the rate regulation is to regulate cooperative action among
insurers
Answer : B
2. All of the following are true of negligence, except
A
It is the failure to use ordinary careB
It does not require a duty to be owedC
It is a type of tort
D
It does not include breach of contract
Answer : B
3. 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
4. Bodily Injury may include which of the following?A
Loss of EarningsB
Slander
C
Invasion of PrivacyD
False Arrest
Answer : A
,5. Notice of premium or coverage changes must be sent out with days'
notice.
A
21
B
25
C
14
D
30
Answer : D
6. All of the following are covered perils under the Extended Coverage En-
dorsement to the DP-1, except
A
Vehicles
B
Weight of ice, snow or sleetC
Windstorm
D
Volcanic eruption
Answer : B
7. Which statement is true concerning Coverage D of the Homeowners Policy?A
, The coverage will pay for all the insured's living expenses until the propertyis
restored
B
If the insured must relocate permanently, payment will be made for 365 days,
regardless of the time it takes the insured to settle at the new location
C
The coverage will pay for any increase in living expenses required to maintainthe
insured's normal standard of living
D
The coverage will pay until the property is restored, plus 30 days relocation
expense
Answer : C
8. Policyholder M insures her owner-occupied single family residence under a
dwelling property policy (DP-3) with a limit of $100,000. If the dwelling is
damaged in a fire, what policy coverage will pay for M's extra costs to stay ina
motel and board her pets while the fire damage is being repaired?
A
