IDAHO PROPERTY AND CASUALTY INSURANCE
EXAM EXAM PREP
◉ 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
EXAM EXAM PREP
◉ 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
