Idaho Bail Bondsman Insurance License Exam
Questions And Correct Answers (Over 100 QA)
2023
A domestic insurance companay:
is incorporated in the state within which it is located. It is considered foreign in all other
states.
A captive insurance company exists primarily to:
underwrite the risks of the parent owner.
What agreement is for laying the legal framework of the insurance business?
Insurance agent partnership agreement
True or False: An 'arrest' must be accompanied by physical restraint or handcuffs
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?
This is known as booking
Is telling a partial true considered concealment?
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.
False
True or False: When forming an insurance contract, an invitation to treat or to
make an offer must come from the insurer.
False
True or False: Counter offer is usually not possible in the process of negotiating
an insurance contract.
False
With an aleatory contract, a party may receive:
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.
Adhesion
With a ______ contract the covenants to the contract may remain partially or
completely unfulfilled.
Executory
Insurance contracts are ______, meaning the promise of a party is exchanged for
a specific act of another party.
Unilateral
True or False: All insurance contracts are conditional
True
What refers to an event that can cancel a right?
A condition precedent
, True or False: A breach of warranty can usually provide sufficient ground for
voiding the contract
True
In the context of insurance, the major elements of a contract include:
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 _________.
Oral or written
Impersonation is _________.
false pretenses
Material misrepresentation always involves_________.
A misstatement made during the insurance application.
True or False: Policy cancellation and rescission are the same thing
False
A criminal suspect may be granted ____ release such that no bail money needs to
be paid and that no bond needs to be posted.
Own recognizance
An insurance policy that does not constitute insurable interest would be
considered as _______.
Void and illegal
Adverse selection is said to exist when ____.
A risk insured is more likely than average in experiencing losses
Insurance underwriting is all about _______.
Classifying, rating and selecting risks
An insurance risk class is usually based on a large group of people with _____.
Similar characteristics
True or False: It is always expected that an underwriter foresees all the possible
circumstances
False
True or False: A warranty will never become an actual part of the insurance
contract.
False
Insurance underwriting involves ______.
Classifying, rating and selecting risks
What describes the failure to act as a reasonable third person would in the exact
same situation?
Negligence
Generally, the degree of error in the predicting the losses will decrease when
______.
the number of the individuals is increased
Who compiles statistical data about the exposure units and the relevant risks?
Actuaries
From the perspective of the insurance companies, expected losses are always
based on:
past experience of the average risk
Questions And Correct Answers (Over 100 QA)
2023
A domestic insurance companay:
is incorporated in the state within which it is located. It is considered foreign in all other
states.
A captive insurance company exists primarily to:
underwrite the risks of the parent owner.
What agreement is for laying the legal framework of the insurance business?
Insurance agent partnership agreement
True or False: An 'arrest' must be accompanied by physical restraint or handcuffs
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?
This is known as booking
Is telling a partial true considered concealment?
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.
False
True or False: When forming an insurance contract, an invitation to treat or to
make an offer must come from the insurer.
False
True or False: Counter offer is usually not possible in the process of negotiating
an insurance contract.
False
With an aleatory contract, a party may receive:
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.
Adhesion
With a ______ contract the covenants to the contract may remain partially or
completely unfulfilled.
Executory
Insurance contracts are ______, meaning the promise of a party is exchanged for
a specific act of another party.
Unilateral
True or False: All insurance contracts are conditional
True
What refers to an event that can cancel a right?
A condition precedent
, True or False: A breach of warranty can usually provide sufficient ground for
voiding the contract
True
In the context of insurance, the major elements of a contract include:
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 _________.
Oral or written
Impersonation is _________.
false pretenses
Material misrepresentation always involves_________.
A misstatement made during the insurance application.
True or False: Policy cancellation and rescission are the same thing
False
A criminal suspect may be granted ____ release such that no bail money needs to
be paid and that no bond needs to be posted.
Own recognizance
An insurance policy that does not constitute insurable interest would be
considered as _______.
Void and illegal
Adverse selection is said to exist when ____.
A risk insured is more likely than average in experiencing losses
Insurance underwriting is all about _______.
Classifying, rating and selecting risks
An insurance risk class is usually based on a large group of people with _____.
Similar characteristics
True or False: It is always expected that an underwriter foresees all the possible
circumstances
False
True or False: A warranty will never become an actual part of the insurance
contract.
False
Insurance underwriting involves ______.
Classifying, rating and selecting risks
What describes the failure to act as a reasonable third person would in the exact
same situation?
Negligence
Generally, the degree of error in the predicting the losses will decrease when
______.
the number of the individuals is increased
Who compiles statistical data about the exposure units and the relevant risks?
Actuaries
From the perspective of the insurance companies, expected losses are always
based on:
past experience of the average risk
