Idaho Insurance Licensing Property and Casualty
Exam Study Guide with Complete Solutions 100%
Verified 2024
Insurance - Correct Answer Is a contract win which one party agrees to indemnify the insured party against loss,damage, or liabilty.
Insurance Transfers - Correct Answer The risk of loss from an individual or business entity to an insurance company which in turn spreads the costs of unexpected losses to many individuals.
Insurance Transaction - Correct Answer Includes solicitation, negotiations, sale, and advising etc
Risk - Correct Answer the uncertainty or chance of loss
Pure risk - Correct Answer Refers to situations that can only result in a loss or no change. Always accepting in companies.
Speculative Risk - Correct Answer involves the opportunity for either loss or gain. Not Insurable.
Hazard - Correct Answer are conditions or situations that increase the probability of an insured loss occurring.
Physical Hazard - Correct Answer Are individual characteristics that increase the chances of the cause of loss. Exist because of physical conditions like medical history, birth conditions, or blindness
Moral Hazard - Correct Answer Tendencies towards increased risks based on character and reputation. Refers to applicants who lie on applications or have fraudulent insurance claims
Morale Hazard - Correct Answer Hazard arising out of an insured's indifference to loss because of the existence of insurance.
Perils - Correct Answer are the causes of loss insured against in an insurance policy. Loss - Correct Answer Is defined as the reduction, decrease, or disappearance of value of the person or property. Insured in a policy, caused by a named peril.
Sharing - Correct Answer Is a method of dealing with risk for a group of individual persons or businesses with the same or similar exposure to loss to share the losses that occur within each group
transfer - Correct Answer Most effective way to handle risk so loss is borne by another party
Avoidance - Correct Answer Eliminating exposure to a loss
Retention - Correct Answer Planned assumption of risk by an insured through deductibles, co-pays, or self insurance. Accepting responsibility before insurance company pays
Reduction - Correct Answer Attempt to lessen the possibility of severity of a loss. Examples installing smoke detectors or having an annual physical
Who is an Agent/Producer - Correct Answer Is an individual licensed to sell,solicit, or negotiate insurance
contracts on behalf of the principal (insurer).
Law of Agency - Correct Answer Defines relationship between the principal and the agent/producer: the acts of the agent/producer within the scope of authority are deemed to be the acts of the insurer
Implied Authority - Correct Answer The authority that is not expressed or written into the contract, but which agent is assumed to have in order to transact bussiness
Express Authority - Correct Answer The authority granted to an agent by means of the agent's written contract.
Apparent Authority - Correct Answer Is the appearance or assumption of authority based on the actions,
words, or deeds of the principal.
Exam Study Guide with Complete Solutions 100%
Verified 2024
Insurance - Correct Answer Is a contract win which one party agrees to indemnify the insured party against loss,damage, or liabilty.
Insurance Transfers - Correct Answer The risk of loss from an individual or business entity to an insurance company which in turn spreads the costs of unexpected losses to many individuals.
Insurance Transaction - Correct Answer Includes solicitation, negotiations, sale, and advising etc
Risk - Correct Answer the uncertainty or chance of loss
Pure risk - Correct Answer Refers to situations that can only result in a loss or no change. Always accepting in companies.
Speculative Risk - Correct Answer involves the opportunity for either loss or gain. Not Insurable.
Hazard - Correct Answer are conditions or situations that increase the probability of an insured loss occurring.
Physical Hazard - Correct Answer Are individual characteristics that increase the chances of the cause of loss. Exist because of physical conditions like medical history, birth conditions, or blindness
Moral Hazard - Correct Answer Tendencies towards increased risks based on character and reputation. Refers to applicants who lie on applications or have fraudulent insurance claims
Morale Hazard - Correct Answer Hazard arising out of an insured's indifference to loss because of the existence of insurance.
Perils - Correct Answer are the causes of loss insured against in an insurance policy. Loss - Correct Answer Is defined as the reduction, decrease, or disappearance of value of the person or property. Insured in a policy, caused by a named peril.
Sharing - Correct Answer Is a method of dealing with risk for a group of individual persons or businesses with the same or similar exposure to loss to share the losses that occur within each group
transfer - Correct Answer Most effective way to handle risk so loss is borne by another party
Avoidance - Correct Answer Eliminating exposure to a loss
Retention - Correct Answer Planned assumption of risk by an insured through deductibles, co-pays, or self insurance. Accepting responsibility before insurance company pays
Reduction - Correct Answer Attempt to lessen the possibility of severity of a loss. Examples installing smoke detectors or having an annual physical
Who is an Agent/Producer - Correct Answer Is an individual licensed to sell,solicit, or negotiate insurance
contracts on behalf of the principal (insurer).
Law of Agency - Correct Answer Defines relationship between the principal and the agent/producer: the acts of the agent/producer within the scope of authority are deemed to be the acts of the insurer
Implied Authority - Correct Answer The authority that is not expressed or written into the contract, but which agent is assumed to have in order to transact bussiness
Express Authority - Correct Answer The authority granted to an agent by means of the agent's written contract.
Apparent Authority - Correct Answer Is the appearance or assumption of authority based on the actions,
words, or deeds of the principal.
