IDAHO PROPERTY INSURANCE EXAM 2024
WITH 200 QUESTIONS AND CORRECT
ANSWERS GRADED A+
The term flood refers to all of the following EXCEPT
A. an overflow of inland tidal waters
B. collapse of land as a result of excessive erosion due to flood
C. mudslides
D. sewer backup - ANSWER-Sewer backup
Insurers may be classified according to their financial strength. This includes all of
the following factors EXCEPT...
A. Number of clients
B. Loss experience
C. Investment performance
D. Operating expenses - ANSWER-Number of clients
An individual applied for auto insurance and obtained coverage from ABC IC.
Who is the 1st party in the contract?
A. The insured (customer)
B. The insurer (IC)
C. The agent
D. The insured and agent - ANSWER-A. The insured (customer)
,If a fire causes damage to a building, the fire is...
A. A Hazard
B. A Peril
C. A Risk
D. An Exposure - ANSWER-B. A Peril
Wearing a seatbelt in a car is an ex of which method of managing risk?
A. Retain
B. Avoid
C. Reduce
D. Transfer - ANSWER-C. Reduce
Tiffany leaves her car unlocked when she goes shopping. She figures her car and
its contents are insured, so there is no reason to worry. Which type of hazard is this
an example of?
A. Physical
B. Morale
C. Careless
D. Moral - ANSWER-Morale
A flood is an example of....
A. A peril
B. A moral hazard
C. A speculative risk
D. a physical hazard - ANSWER-A peril
,An insurance company incorporated in Wisconsin and conducting business in
Wisconsin is known as a domestic company. What kind of company are they
considered if they do business in Minnesota?
A. Alien
B. Domestic
C. Foreign
D. Nonadmitted - ANSWER-Foreign
All of the following statements about a stock insurance company are true EXCEPT
A. A stock co pays dividends to stockholders
B. A stock co is a participating co
C. A Stock co is a nonparticipating co
D. a stock co has shareholders - ANSWER-A stock company is a participating
company
What do IC's use to help predict how many losses will occur in a group or class of
individuals?
A. The law of Large Numbers
B. Standard and Poor's Insurance Rating Service
C. Risk retention groups
D. Adverse Selection - ANSWER-The law of Large Numbers
State require companies to have a license to sell insurance in the state. The license
is called...
, A. A certificate of authority
B. A reinsurance license
C. A producer's license
D. An admittance license - ANSWER-A certificate of authority
All of the following are requirements of an insurance pure risk EXCEPT...
A. premiums must be calculable
B. premium must be affordable
C. the risk must be catastrophic for the insurance company
D. The loss must have been accidental - ANSWER-the risk must be catastrophic
for the insurance company
Carl hands out a business card with his company's logo to all new prospects that he
meets at a golf outing. This is an example of...
A. express authority
B. implied authority
C. Apparent authority
D. Agent Authority - ANSWER-implied authority
Agency is a relationship in which one person is authorized to represent and act for
another person or a corporation. In insurance, the insurance agent acts on behalf
of...
A. The principal
B. The insured
WITH 200 QUESTIONS AND CORRECT
ANSWERS GRADED A+
The term flood refers to all of the following EXCEPT
A. an overflow of inland tidal waters
B. collapse of land as a result of excessive erosion due to flood
C. mudslides
D. sewer backup - ANSWER-Sewer backup
Insurers may be classified according to their financial strength. This includes all of
the following factors EXCEPT...
A. Number of clients
B. Loss experience
C. Investment performance
D. Operating expenses - ANSWER-Number of clients
An individual applied for auto insurance and obtained coverage from ABC IC.
Who is the 1st party in the contract?
A. The insured (customer)
B. The insurer (IC)
C. The agent
D. The insured and agent - ANSWER-A. The insured (customer)
,If a fire causes damage to a building, the fire is...
A. A Hazard
B. A Peril
C. A Risk
D. An Exposure - ANSWER-B. A Peril
Wearing a seatbelt in a car is an ex of which method of managing risk?
A. Retain
B. Avoid
C. Reduce
D. Transfer - ANSWER-C. Reduce
Tiffany leaves her car unlocked when she goes shopping. She figures her car and
its contents are insured, so there is no reason to worry. Which type of hazard is this
an example of?
A. Physical
B. Morale
C. Careless
D. Moral - ANSWER-Morale
A flood is an example of....
A. A peril
B. A moral hazard
C. A speculative risk
D. a physical hazard - ANSWER-A peril
,An insurance company incorporated in Wisconsin and conducting business in
Wisconsin is known as a domestic company. What kind of company are they
considered if they do business in Minnesota?
A. Alien
B. Domestic
C. Foreign
D. Nonadmitted - ANSWER-Foreign
All of the following statements about a stock insurance company are true EXCEPT
A. A stock co pays dividends to stockholders
B. A stock co is a participating co
C. A Stock co is a nonparticipating co
D. a stock co has shareholders - ANSWER-A stock company is a participating
company
What do IC's use to help predict how many losses will occur in a group or class of
individuals?
A. The law of Large Numbers
B. Standard and Poor's Insurance Rating Service
C. Risk retention groups
D. Adverse Selection - ANSWER-The law of Large Numbers
State require companies to have a license to sell insurance in the state. The license
is called...
, A. A certificate of authority
B. A reinsurance license
C. A producer's license
D. An admittance license - ANSWER-A certificate of authority
All of the following are requirements of an insurance pure risk EXCEPT...
A. premiums must be calculable
B. premium must be affordable
C. the risk must be catastrophic for the insurance company
D. The loss must have been accidental - ANSWER-the risk must be catastrophic
for the insurance company
Carl hands out a business card with his company's logo to all new prospects that he
meets at a golf outing. This is an example of...
A. express authority
B. implied authority
C. Apparent authority
D. Agent Authority - ANSWER-implied authority
Agency is a relationship in which one person is authorized to represent and act for
another person or a corporation. In insurance, the insurance agent acts on behalf
of...
A. The principal
B. The insured
