IDAHO PERSONAL LINES STIMULATIONS
(Guaranteed Exam FX) REVISION STUDY
QUESTIONS AND ANSWERS A+ GRADED.
When the amount of insurance written in a property policy is not subject to
any coinsurance provision and that amount is paid in the event of a
covered loss, the coverage is said to be written as
1. Replacement cost.
2. Actual cash value.
3. Specific insurance.
4. Stated amount.
Verified Answer -Stated amount.
Which of the following types of insurance companies is an incorporated
insurer without capital stock or shares?
1. Reciprocal Insurer
2. Stock Insurer
3. Mutual Insurer
4. Fraternal Insurer
Verified Answer -Mutual Insurer
In a personal auto policy, the medical payments coverage is similar to
1. Accident insurance, because it pays medical expenses regardless of
fault.
2. Accident insurance, because it has the same limits.
3. Bodily injury coverage, because it pays the insured's doctor bills.
,4. Bodily injury coverage, because it provides legal protection if the
insured causes injuries to others.
Verified Answer -Accident insurance, because it pays medical expenses
regardless of fault.
All of the following are true of Coverage B - Other Structures EXCEPT
1. The amount of coverage provided by Coverage B is an amount equal to
10% of Coverage A.
2. Land where the other structures are located is not covered.
3. It must be added by endorsement to a homeowners policy.
4. This coverage is not applicable on the HO-4 policy form.
Verified Answer -It must be added by endorsement to a homeowners
policy.
When an umbrella policy is broader than underlying insurance and it pays
a loss that is not covered by the underlying policy, it usually only pays
1. A percentage of the loss as described on the declarations.
2. The excess over the self-insured retention.
3. The amount specified in the policy under the additional coverage
provisions.
4. The amount in excess of the policy's limits of liability.
Verified Answer -The excess over the self-insured retention.
*The process of determining the premium charged and how much
insurance is required for a particular loss is called
1. Agreed value.
2. Loss payment.
3. Coinsurance.
,4. Loss valuation.
Verified Answer -Loss valuation.
Under Coverage C of a homeowners policy, the amount of insurance
provided to cover personal property of the insured is
1. 50% of the amount provided as Coverage A.
2. Equal to the amount provided as Coverage B.
3. Equal to the amount provided as Coverage A.
4. 50% of the amount provided as Coverage B.
Verified Answer -50% of the amount provided as Coverage A.
The difference in the contents coverage on an HO-3 and HO-5 is which of
the following?
1. Contents are covered for replacement cost on HO-5, and ACV on HO-3.
2. Contents are covered for replacement cost on HO-3, and ACV on HO-5.
3. Contents are covered open peril on HO-5, and named peril on HO-3.
4. Contents are covered open peril on HO-3, and named peril on HO-5.
Verified Answer -Contents are covered open peril on HO-5, and named
peril on HO-3.
"Proof of Financial Responsibility" means the ability to
1. Prove that any payment on an auto that is financed through a lender is
current.
2. Prove that an owner/operator can pay for their medical expenses in the
event of injury in an auto accident.
3. Prove that an owner/operator can pay for medical expenses and/or
property damage of others that arise from an auto accident in which such
person is judged to be at fault.
, 4. Prove the financial ability of the owner/operator to pay property taxes
on a vehicle driven on public roads.
Verified Answer -Prove that an owner/operator can pay for medical
expenses and/or property damage of others that arise from an auto
accident in which such person is judged to be at fault.
When the Director conducts an examination of alien insurers, what is the
typical extent of the examination?
1. Transactions occurring in the U.S. only
2. Transactions occurring in both the insurer's home country and the U.S.
3. All transactions from the last year only
4. Transactions occurring in alien's home country
Verified Answer -Transactions occurring in the U.S. only
When a producer changes address of their residence or office, the
Insurance Department must be notified within
1. 10 days.
2. 15 days.
3. 30 days.
4. 60 days.
Verified Answer -30 days
Marine insurance risks may include all of the following, EXCEPT
1. Precious metals.
2. Automobiles.
3. Bridges.
4. Workers Compensation.
Verified Answer -Workers Compensation.
(Guaranteed Exam FX) REVISION STUDY
QUESTIONS AND ANSWERS A+ GRADED.
When the amount of insurance written in a property policy is not subject to
any coinsurance provision and that amount is paid in the event of a
covered loss, the coverage is said to be written as
1. Replacement cost.
2. Actual cash value.
3. Specific insurance.
4. Stated amount.
Verified Answer -Stated amount.
Which of the following types of insurance companies is an incorporated
insurer without capital stock or shares?
1. Reciprocal Insurer
2. Stock Insurer
3. Mutual Insurer
4. Fraternal Insurer
Verified Answer -Mutual Insurer
In a personal auto policy, the medical payments coverage is similar to
1. Accident insurance, because it pays medical expenses regardless of
fault.
2. Accident insurance, because it has the same limits.
3. Bodily injury coverage, because it pays the insured's doctor bills.
,4. Bodily injury coverage, because it provides legal protection if the
insured causes injuries to others.
Verified Answer -Accident insurance, because it pays medical expenses
regardless of fault.
All of the following are true of Coverage B - Other Structures EXCEPT
1. The amount of coverage provided by Coverage B is an amount equal to
10% of Coverage A.
2. Land where the other structures are located is not covered.
3. It must be added by endorsement to a homeowners policy.
4. This coverage is not applicable on the HO-4 policy form.
Verified Answer -It must be added by endorsement to a homeowners
policy.
When an umbrella policy is broader than underlying insurance and it pays
a loss that is not covered by the underlying policy, it usually only pays
1. A percentage of the loss as described on the declarations.
2. The excess over the self-insured retention.
3. The amount specified in the policy under the additional coverage
provisions.
4. The amount in excess of the policy's limits of liability.
Verified Answer -The excess over the self-insured retention.
*The process of determining the premium charged and how much
insurance is required for a particular loss is called
1. Agreed value.
2. Loss payment.
3. Coinsurance.
,4. Loss valuation.
Verified Answer -Loss valuation.
Under Coverage C of a homeowners policy, the amount of insurance
provided to cover personal property of the insured is
1. 50% of the amount provided as Coverage A.
2. Equal to the amount provided as Coverage B.
3. Equal to the amount provided as Coverage A.
4. 50% of the amount provided as Coverage B.
Verified Answer -50% of the amount provided as Coverage A.
The difference in the contents coverage on an HO-3 and HO-5 is which of
the following?
1. Contents are covered for replacement cost on HO-5, and ACV on HO-3.
2. Contents are covered for replacement cost on HO-3, and ACV on HO-5.
3. Contents are covered open peril on HO-5, and named peril on HO-3.
4. Contents are covered open peril on HO-3, and named peril on HO-5.
Verified Answer -Contents are covered open peril on HO-5, and named
peril on HO-3.
"Proof of Financial Responsibility" means the ability to
1. Prove that any payment on an auto that is financed through a lender is
current.
2. Prove that an owner/operator can pay for their medical expenses in the
event of injury in an auto accident.
3. Prove that an owner/operator can pay for medical expenses and/or
property damage of others that arise from an auto accident in which such
person is judged to be at fault.
, 4. Prove the financial ability of the owner/operator to pay property taxes
on a vehicle driven on public roads.
Verified Answer -Prove that an owner/operator can pay for medical
expenses and/or property damage of others that arise from an auto
accident in which such person is judged to be at fault.
When the Director conducts an examination of alien insurers, what is the
typical extent of the examination?
1. Transactions occurring in the U.S. only
2. Transactions occurring in both the insurer's home country and the U.S.
3. All transactions from the last year only
4. Transactions occurring in alien's home country
Verified Answer -Transactions occurring in the U.S. only
When a producer changes address of their residence or office, the
Insurance Department must be notified within
1. 10 days.
2. 15 days.
3. 30 days.
4. 60 days.
Verified Answer -30 days
Marine insurance risks may include all of the following, EXCEPT
1. Precious metals.
2. Automobiles.
3. Bridges.
4. Workers Compensation.
Verified Answer -Workers Compensation.
