IDAHO PROPERTY AND
CASUALTY EXAM PREP
2023/2024 GRADED A+ .
,1. 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 insur-
ers
C) Rates may not be unfairly discriminatory
D) A purpose of the rate regulation is to regulate cooperative action among
insurers: B
2. The Businessowners Coverage Form to the Businessowners Policy pro-
vides coverage on which of the following basis?
A) Modified Perils
B) Simplified Perils
C) Broad Perils
D) Open Perils: D
3. Which of the following describes the coverage of the Extra Expense Cover-
age Form?
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: C
4. 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: B
5. All of the following are Optional Coverages under the Businessowners
Policy, except:
, Idaho Property & Casualty Exam Prep
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-
:D
6. 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
$500: B
7. 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: A
8. Which Ocean Marine insurance provision protects against direct damage
caused by bursting of boilers?
A
Boiler & Machinery Clause
B
, Idaho Property & Casualty Exam Prep
Inchmaree Clause
C
Mechanical Failure Clause
D
Running Down Clause: B
9. Bodily Injury may include which of the following?
A
Loss of Earnings
B
Slander
C
Invasion of Privacy
D
False Arrest: A
10. Which of the following covers an employee in a position of private trust
and protects an employer against loss caused by the employee's dishonesty.
A
Performance bond
B
Fidelity bond
C
Lender's bond
D
License bond: B
11. Which of the following is correct regarding products liability under the
CGL?
A
Coverage applies to the bodily injury (BI) and property damage (PD) the
product causes, but not to the product itself
B
Products liability coverage commences immediately upon sale of the product,
before the purchaser leaves the insured's premises
C
Products liability coverage includes dram shop liability insurance
D
Coverage applies to BI and PD caused by the product, and to damage to the
product itself once in the purchaser's care, custody and control: A
CASUALTY EXAM PREP
2023/2024 GRADED A+ .
,1. 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 insur-
ers
C) Rates may not be unfairly discriminatory
D) A purpose of the rate regulation is to regulate cooperative action among
insurers: B
2. The Businessowners Coverage Form to the Businessowners Policy pro-
vides coverage on which of the following basis?
A) Modified Perils
B) Simplified Perils
C) Broad Perils
D) Open Perils: D
3. Which of the following describes the coverage of the Extra Expense Cover-
age Form?
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: C
4. 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: B
5. All of the following are Optional Coverages under the Businessowners
Policy, except:
, Idaho Property & Casualty Exam Prep
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-
:D
6. 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
$500: B
7. 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: A
8. Which Ocean Marine insurance provision protects against direct damage
caused by bursting of boilers?
A
Boiler & Machinery Clause
B
, Idaho Property & Casualty Exam Prep
Inchmaree Clause
C
Mechanical Failure Clause
D
Running Down Clause: B
9. Bodily Injury may include which of the following?
A
Loss of Earnings
B
Slander
C
Invasion of Privacy
D
False Arrest: A
10. Which of the following covers an employee in a position of private trust
and protects an employer against loss caused by the employee's dishonesty.
A
Performance bond
B
Fidelity bond
C
Lender's bond
D
License bond: B
11. Which of the following is correct regarding products liability under the
CGL?
A
Coverage applies to the bodily injury (BI) and property damage (PD) the
product causes, but not to the product itself
B
Products liability coverage commences immediately upon sale of the product,
before the purchaser leaves the insured's premises
C
Products liability coverage includes dram shop liability insurance
D
Coverage applies to BI and PD caused by the product, and to damage to the
product itself once in the purchaser's care, custody and control: A
