IDAHO PROPERTY & CASUALTY
EXAM
PREP QUESTIONS AND ANSWERS
Which of the following statements is false with respect to
requirements for rates?
A) Rates may not be inadequate
B) A purpose of the rate regulation is to diminish
competition between insurers
C) Rates may not be unfairly discriminatory
D) A purpose of the rate regulation is to regulate
cooperative action among insurers - answerB
The Businessowners Coverage Form to the
Businessowners Policy provides coverage on which of the
following basis?
A) Modified Perils
B) Simplified Perils
C) Broad Perils
D) Open Perils - answerD
Which of the following describes the coverage of the
Extra Expense Coverage Form?
IDAHO
,A
It covers the loss of business income during the period of
restoration
B
It covers the expense of disposing of spoiled
merchandise caused by a power outage
C
It covers the necessary additional expenses incurred
during the period of restoration which would not
otherwise have been incurred in the absence of a direct
loss
D
It covers the expense of removing the debris of a
covered direct loss - answerC
All of the following are true of negligence, except:
A
It is the failure to use ordinary care
B
It does not require a duty to be owed
C
It is a type of tort
D
It does not include breach of contract - answerB
IDAHO
,All of the following are Optional Coverages under the
Businessowners Policy, except:
A
Money and securities
B
Employee dishonesty
C
Outdoor signs
D
Personal property of others that is in the insured's care,
custody and control - answerD
Policyholder S has an HO-5 policy with a $250,000
Coverage A limit. After a strong wind blows a mailbox
into S's front picture window, causing $2,500 damage, S
immediately buys $250 of wood and plastic sheeting to
cover the damaged window and prevent further damage.
How much will S's policy pay?
A
$2,250
B
$2,750
C
$250
D
IDAHO
, $500 - answerB
The Collision or Running Down Clause in Ocean Marine
Insurance covers:
A
Collision damage to another vessel when the shipper is
liable
B
Collision damage to the insured vessel when it collides
with a pier or fixed object
C
Damage to the insured vessel caused by running
aground
D
Collision damage to the insured vessel when it collides
with another vessel - answerA
Which Ocean Marine insurance provision protects against
direct damage caused by bursting of boilers?
A
Boiler & Machinery Clause
B
Inchmaree Clause
IDAHO
EXAM
PREP QUESTIONS AND ANSWERS
Which of the following statements is false with respect to
requirements for rates?
A) Rates may not be inadequate
B) A purpose of the rate regulation is to diminish
competition between insurers
C) Rates may not be unfairly discriminatory
D) A purpose of the rate regulation is to regulate
cooperative action among insurers - answerB
The Businessowners Coverage Form to the
Businessowners Policy provides coverage on which of the
following basis?
A) Modified Perils
B) Simplified Perils
C) Broad Perils
D) Open Perils - answerD
Which of the following describes the coverage of the
Extra Expense Coverage Form?
IDAHO
,A
It covers the loss of business income during the period of
restoration
B
It covers the expense of disposing of spoiled
merchandise caused by a power outage
C
It covers the necessary additional expenses incurred
during the period of restoration which would not
otherwise have been incurred in the absence of a direct
loss
D
It covers the expense of removing the debris of a
covered direct loss - answerC
All of the following are true of negligence, except:
A
It is the failure to use ordinary care
B
It does not require a duty to be owed
C
It is a type of tort
D
It does not include breach of contract - answerB
IDAHO
,All of the following are Optional Coverages under the
Businessowners Policy, except:
A
Money and securities
B
Employee dishonesty
C
Outdoor signs
D
Personal property of others that is in the insured's care,
custody and control - answerD
Policyholder S has an HO-5 policy with a $250,000
Coverage A limit. After a strong wind blows a mailbox
into S's front picture window, causing $2,500 damage, S
immediately buys $250 of wood and plastic sheeting to
cover the damaged window and prevent further damage.
How much will S's policy pay?
A
$2,250
B
$2,750
C
$250
D
IDAHO
, $500 - answerB
The Collision or Running Down Clause in Ocean Marine
Insurance covers:
A
Collision damage to another vessel when the shipper is
liable
B
Collision damage to the insured vessel when it collides
with a pier or fixed object
C
Damage to the insured vessel caused by running
aground
D
Collision damage to the insured vessel when it collides
with another vessel - answerA
Which Ocean Marine insurance provision protects against
direct damage caused by bursting of boilers?
A
Boiler & Machinery Clause
B
Inchmaree Clause
IDAHO
