IDAHO PROPERTY AND CASUALTY EXAM PREP WITH 150 REAL

IDAHO PROPERTY AND CASUALTY EXAM PREP WITH 150 REAL

EXAM QUESTIONS AND 100% CORRECT ANSWERS/ IDAHO

PROPERTY & CASUALTY EXAM PRACTICE QUESTIONS AND CORRECT

ANSWERS GRADED A(BRAND NEW!!)

Which is true regarding insurance companies?

:a.Stock companies are managed by the policy owners

.b.Mutuals are owned by the policy holders, have the management members chosen by the policy holders, and pay dividends to the policy holders.c.Stock companies and mutuals both pay dividends to the policy holders.d.Stock companies are owned by the policy holders but mutuals are owned by the stock holders. - CORRECT ANSWER-b

For a business, Extra Expense would cover:

a.payment of normal payroll b.rebuilding the structure c.lost business income d.rental of substitute space - CORRECT ANSWER-d

The Building and Personal Property policy covers:

a.outdoor furniture b.pets c autos held for resale d.money, stocks and bonds - CORRECT ANSWER-a

The maximum amount payable for all losses resulting from one event is known as the: a.occurrence limit b.aggregate limit - CORRECT ANSWER-a

A Broad Form policy covers:

a.earthquake b.volcano 1 / 3

c.inherent vice d.sewer backup - CORRECT ANSWER-b

The HO's Personal Liability section covers:

a.Damage to the insured's home.b.Medical expenses of the Insured's children.c.Damage to the property of other persons.d.A tenant's suit for wrongful eviction. - CORRECT ANSWER-c

Which of the following is an example of vicarious liability?a.A store owner is held liable when a store employee carelessly drops a box on a customer's foot.b.A store owner is held liable for carelessly dropping a box on a customer's foot. - CORRECT ANSWER-a

What is vicarious liability? - CORRECT ANSWER-Vicarious liability refers to liability for the acts of another. An employer has vicarious liability for the acts of its employees.

If I have a $100,000 HO policy, my personal property is covered to:

a.$100,000 on an actual cash value basis.b.$50,000 on an actual cash value basis.c.$100,000 on a replacement cost basis.d.$50,000 on a replacement cost basis. - CORRECT ANSWER-b

Self-insurers must comply with work comp regulations by:

a.requiring the workers to pay for their work comp b.having a letter signed by the management team indicating solvency c.complying with state regulations d.having at least $10,000,000 in cash to pay claims - CORRECT ANSWER-c

A liability policy will pay which of the following ONLY if the insured is liable? 2 / 3

a.medical payments b.supplementary c.bodily injury d.bonds - CORRECT ANSWER-c

Liability for the destruction of property is covered by:

a.Physical Damage Coverage b.Property Damage Coverage - CORRECT ANSWER-b

Restoring the Insured to the financial condition prior to a loss is:

a.illegal b.direct loss c.peril d.indemnification - CORRECT ANSWER-d

What is indemnification? - CORRECT ANSWER-Indemnification is making whole but not coming out ahead. Another way of saying that is that the Insured is being restored to the financial condition that existed prior to the loss occurring.

Important sources of insurability information used by an underwriter may include each of the

following EXCEPT:

a.a physical inspection.b.the applicant's marital status .c.the application.d.credit reports. - CORRECT ANSWER-b

Auto med pay:

a.is required by both federal and state law b.pays medical and funeral expenses for the Insured and any passengers in the Insured's auto c.covers any pedestrians hit by the Insured's auto d.pays regardless of coverages in other policies - CORRECT ANSWER-b

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