Idaho Property and Casualty Insurance Exam

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Idaho Property and Casualty Insurance Exam Questions and Answers Updated Latest (Verified Answers) 1.The term flood refers to all of the following EXCEPT A.an overflow of inland tidal waters B.collapse of land as a result of excessive erosion due to flood C.mudslides D.sewer backup ANS Sewer backup 2.Insurers may be classified according to their financial strength. This in- cludes all of the following factors EXCEPT...A.Number of clients B.Loss experience C.Investment performance D.Operating expenses ANS Number of clients 1 / 4

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3.An individual applied for auto insurance and obtained coverage from ABC IC. Who is the 1st party in the contract?A.The insured (customer) B.The insurer (IC) C.The agent D.The insured and agent ANS A. The insured (customer) 4.If a fire causes damage to a building, the fire is...A.A Hazard B.A Peril C.A Risk D.An Exposure ANS B. A Peril 5.Wearing a seatbelt in a car is an ex of which method of managing risk?A.Retain B.Avoid C.Reduce D.Transfer 2 / 4

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ANS C. Reduce 6.Tiffany leaves her car unlocked when she goes shopping. She figures her car and its contents are insured, so there is no reason to worry. Which type of hazard is this an example of?A.Physical B.Morale C.Careless D.Moral ANS Morale 7.A flood is an example of....A.A peril 3 / 4

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B.A moral hazard C.A speculative risk D.a physical hazard ANS A peril 8.An insurance company incorporated in Wisconsin and conducting business in Wisconsin is known as a domestic company. What kind of company are they considered if they do business in Minnesota?A.Alien B.Domestic C.Foreign D.Nonadmitted ANS Foreign 9.All of the following statements about a stock insurance company are true EXCEPT A.A stock co pays dividends to stockholders B.A stock co is a participating co C.A Stock co is a nonparticipating co D.a stock co has shareholders ANS A stock company is a participating company

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