Idaho Bail Bondsman Insurance License Exam Questions 100% SOLUTION

A domestic insurance companay: - ANSWER is incorporated in the state within which it is located. It is considered foreign in all other states. A captive insurance company exists primarily to: - ANSWER underwrite the risks of the parent owner. What agreement is for laying the legal framework of the insurance business? - ANSWER Insurance agent partnership agreement True or False: An 'arrest' must be accompanied by physical restraint or handcuffs - ANSWER False What process or procedure involves the determination of a person's eligibility for release from custody in exchange for the posting of a set amount of money? - ANSWER This is known as booking Is telling a partial true considered concealment? - ANSWER Yes because part of the truth was intentionally left out True or False: According to the doctrine of representations, a statement is considered as invalid even if the applicant honestly thought they were speaking the truth. - ANSWER False True or False: When forming an insurance contract, an invitation to treat or to make an offer must come from the insurer. - ANSWER False True or False: Counter offer is usually not possible in the process of negotiating an insurance contract. - ANSWER False With an aleatory contract, a party may receive: - ANSWER considerably more in value than what they have given up With a _________ contract, only one party can draw up the contract in it's entirety. - ANSWER Adhesion With a ______ contract the covenants to the contract may remain partially or completely unfulfilled. - ANSWER Executory Insurance contracts are ______, meaning the promise of a party is exchanged for a specific act of another party. - ANSWER Unilateral True or False: All insurance contracts are conditional - ANSWER True What refers to an event that can cancel a right? - ANSWER A condition precedent True or False: A breach of warranty can usually provide sufficient ground for voiding the contract - ANSWER True In the context of insurance, the major elements of a contract include: - ANSWER Offer, acceptance, consideration, competent parties and legal purpose To void a contract due to misrepresented information provided by the insured, the information involved must be _________. - ANSWER Oral or written Impersonation is _________. - ANSWER false pretenses Material misrepresentation always involves_________. - ANSWER A misstatement made during the insurance application. True or False: Policy cancellation and rescission are the same thing - ANSWER False