Idaho Property & Casualty Exam (With complete solution)

In Idaho, an insurer is required to give the named insured at least _____ days notice in writing of total premium increases greater than 10% resulting from an increase in rates, changes in deductibles, reduction in limits, or reduction in coverage. 30 20 45 60 correct answers 30 In Idaho, what entity is responsible for regulating workers compensation activities, including companies licensed to issue workers compensation policies? The Idaho Industrial Commission The Idaho Department of Health and Human Services The Idaho Property & Casualty Guaranty Association The Idaho Department of Insurance correct answers The Idaho Industrial Commission Tom purchases a personal auto policy with limits of $25/50/25 and his wife Jane also purchases a policy with limits of $50/100/25. Both policies cover the same automobiles and both policies were purchased from the same insurance company. Neither Tom nor Jane is aware their spouse has purchased another personal auto policy. If an accident occurs and several people are injured, what is the most in liability coverage that will be available if Tom and Jane are both sued by the injured parties? $150,000 which is the maximum bodily injury limit per accident for the two policies combined. It would depend on who was driving, Tom or Jane, to determine what liability limit applies. If the policies are from the same company, Jane's limit of $100,000 would apply because it is the highest of the two limits. No limit would apply because the insurer would see this as a fraud situation. correct answers If the policies are from the same company, Jane's limit of $100,000 would apply because it is the highest of the two limits. Which one of the following situations would be considered an example of absolute (strict) liability? Wayne keeps a large police-trained dog in his jewelry store as a deterrent to burglars. During the time the store is open for business, the dog is confined to a back room. One day, the dog escaped, ran into the showroom and bit a customer. The roof of a grocery store blew off during a tornado. Pieces of the roof struck the side of the store next door, damaged the siding and broke several windows. Carl thinks of himself as a master handyman but is careless with his tools. A trespasser tripped on a hammer and was injured. rom an increase in rates, changes in deductibles, reduction in limits, or reduction in coverage. 30 20 45 60 correct answers 30 In Idaho, what entity is responsible for regulating workers compensation activities, including companies licensed to issue workers compensation policies? The Idaho Industrial Commission The Idaho Department of Health and Human Services The Idaho Property & Casualty Guaranty Association The Idaho Department of Insurance correct answers The Idaho Industrial Commission Tom purchases a personal auto policy with limits of $25/50/25 and his wife Jane also purchases a policy with limits of $50/100/25. Both policies cover the same automobiles and both policies were purchased from the same insurance company. Neither Tom nor Jane is aware their spouse has purchased another personal auto policy. If an accident occurs and several people are injured, what is the most in liability coverage that will be available if Tom and Jane are both sued by the injured parties? $150,000 which is the maximum bodily injury limit per accident for the two policies combined. It would depend on who was driving, Tom or Jane, to determine what liability limit applies. If the policies are from the same company, Jane's limit of $100,000 would apply because it is the highest of the two limits. No limit would apply because the insurer would see this as a fraud situation. correct answers If the policies are from the same company, Jane's limit of $100,000 would apply because it is the highest of the two limits. Which one of the following situations would be considered an example of absolute (strict) liability? Wayne keeps a large police-trained dog in his jewelry store as a deterrent to burglars. During the time the store is open for business, the dog is confined to a back room. One day, the dog escaped, ran into the showroom and bit a customer. The roof of a grocery store blew off during a tornado. Pieces of the roof struck the side of the store next door, damaged the siding and broke several windows. Carl thinks of himself as a master handyman but is careless with his tools. A trespasser tripped on a hammer and was injured.