IDAHO BAIL BONDSMAN INSURANCE LICENSE
PRACTICE SOLUTION 2026 SOLVED ITEMS
CONFIRMED A+
◉ 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
PRACTICE SOLUTION 2026 SOLVED ITEMS
CONFIRMED A+
◉ 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
