CASUALTY IDAHO EXAM WITH COMPLETE
SOLUTIONS {GRADED A}
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 - ✔✔B
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 - ✔✔D
,Which of the following describes the coverage of the Extra Expense
Coverage 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
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
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 - ✔✔D
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
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
SOLUTIONS {GRADED A}
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 - ✔✔B
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 - ✔✔D
,Which of the following describes the coverage of the Extra Expense
Coverage 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
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
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 - ✔✔D
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
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
